Portland Oregon Rental Market Update – October 2017

By Property Management Systems

PORTLAND, Ore. – As we move into October 2017, and another year gets closer to the end, the fast-paced growth of the Portland Oregon Rental Market is finally starting to slow a bit as prices for rentals are beginning to drop across the city.

As of September 2017, average rent for an apartment in Portland, OR is $1646 which is a 1.15% decrease from last year when the average rent was $1665 , and a 0.36% decrease from last month when the average rent was $1652.

One-bedroom apartments in Portland rent for $1521 a month on average (a 0.66% decrease from last year) and two-bedroom apartment rents average $1873 (a 0.91% increase from last year). 

Source – Rentjungle.com

Rents Are Slowly Decreasing Across Portland

Why have rents begun to decrease in some areas? This can be due to a variety of reasons but one of the most commonly cited by economic analysts is the increase in mixed-use buildings across Portland Oregon and with the increase in these buildings the additional supply is meeting demand.

Mixed-use buildings have sprung up all over Portland, primarily on the city’s east side. Real estate broker Vinny Small says the increased supply has led to an increase in vacancy rates for both retail and residential units.

“When I do throw a two-bedroom apartment out there, I’m not getting the response that I used to,” Small said. “I’m actually having to do incentives, where you’ll give a free month of rent or lower the price, which wasn’t the case last year.”

Small says while the residential and commercial real estate markets are softening, he’s seeing more demand for industrial. Experts say this is due to many former industrial spots now being re-purposed for residential or retail. The lack of supply has led to a sharp rise in prices for warehouse space.

Does this mean that the “party” is finally ending for investors? Far from it, there’s still plenty of growth for rents in Portland Oregon on the horizon, especially when it comes to single family homes because, home construction is still far below where it should be so owners can continue to expect rent growth in suburban areas.

Portland City Council Extends Renter Protection Policies

There’s no doubt that Portland does have a homeless problem, thankfully the City Council has been working hard to help the homeless and renters in the city with their renter protection policies, which they recently extended.

Exceptions to Portland land use rules, protections for city renters facing eviction or big rent hikes, and political pressure to devote taxpayer and donor money to affordable housing will continue for the foreseeable future, following a unanimous Portland City Council vote Wednesday.

All those measures are intended to curb Portland’s critical shortage of affordable housing and spike in homelessness.

The council voted Wednesday to extend for a second time it’s a declared “housing emergency.” It also voted to extend a renter protection policy adopted in February by six months to give city officials time to implement a permanent renter’s rights policy.

Instituted in 2015, the emergency declaration has encouraged spending on housing, allowed for flexibility in where city and county officials can open shelters and fast-tracked building permits for affordable housing projects. The council extended the declaration by 18 months and charged the Portland Housing Bureau and the city and county’s Joint Office on Homeless Services to develop criteria for when the city should lift the temporary rules.

 

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