Portland, Oregon

How is the Portland Oregon Rental Market doing now?

There is a strong uptrend in the Portland Oregon rental market for the recent 6 month period. An increase of 4.1% for the average apartment which is huge. This is a rental increase of $66. Apartments that have one bedroom are up 6.7% in the past 6 months, and apartments that have 2 bedrooms are up 5.1%. It would appear at least at this time that apartments with one bedroom are a better investment than apartments with two bedrooms. But, there are other variables and an analysis having to do with investment needs further research.

Arbor Lodge, Corbett-Terwilliger-Lair Hill, and Pearl District cost the most to rent of all Portland neighborhoods. Powellhurst, Wilkes, and Mill Park are the least costly neighborhoods in Portland.

Portland is one of the most difficult areas for renters to get apartments because there is such a scarcity of rentals available. The amount of vacancies is very low at 3.4%. This vacancy percentage is one of the lowest in the United States. And there is an increasing need for houses to purchase and apartments to rent.

For half of the renters in America, the amount of rent they pay is over a third of what they earn. This is contributing to it being very difficult for many of them to pay their bills. The City of Portland, Portland Housing Bureau is working to help those in need by having neighborhoods that are desirable and have financial stability in their housing.

A couple of other things that have contributed to the need for houses that renters can afford, are low salaries, and a sluggish monetary recovery.

One other thing that exacerbates the apartment shortage problem for the renter is that mortgage rates are increasing. This results in it being more difficult to afford a home – thus a higher demand for apartments to rent is created.

The City of Portland, Portland Housing Bureau, is working to have better rents for apartment dwellers by making sure that the economically priced homes that already are here remain, and by building an increasing amount of economically priced homes for people who have lower salaries.

There has been a tremendous resident demand for space. This causes a shortage of supply. This shortage of supply causes prices to soar. How much are prices increasing?

It depends on the area of Portland.

For example, Wilsonville is experiencing a huge increase in rental rates. Would you believe rents have nearly doubled within the past 5 years? One renter in the year 2012 rented an apartment for $900. The same person is now paying $1800 per month in 2017.

This is contributing to very high financial stress. She and her boyfriend work so extremely hard to keep things together financially. She has almost had to give up the apartment. This is good for the investor, but very rough for the apartment dweller.

The building of new construction nearly stopped in the 2008 recession except for a sparse number of exceptions. But starting 2008 and going through 2017, because there were a lot of people moving to Portland from different states, and there are a greater number of rural areas with housing, housing needs have raced ahead of the inventory that exists. Thus, there are many people with severe budget problems from having higher rents. The financial pressure for them is enormous.

If you would like to see multifamily complexes being sold, click on http://www.loopnet.com/Apartment-Buildings-For-Sale. In addition, if you would like an additional resource to learn about Portland Oregon multifamily real estate, go to http://www.theapartmentconsultant.com/about.php

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• Lake Oswego
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