Portland may have the nation’s second-tightest apartment market, but it’s a middling place to invest in rentals. Find out how we rank for Portland rentals.
Portland may have the nation’s second-tightest apartment market, but it’s a middling place to invest in rentals.
So says Seattle-based All Property Management, which ranked 75 U.S. cities for its first quarter Rental Property Investment score report, released Tuesday. Portland came in 43rd overall in the rankings, which consider factors such as vacancy rates, rent trends, cap rates, job growth, housing prices and property appreciation.
With a rental vacancy rate of 3 percent, Portland should be a landlord’s dream. But the City of Roses was dinged for its relatively low capitalization rate or “cap rate,” which represents the return on the investors investment based on current rents. Portland’s moderate cap rate — 6.53 percent according to All Property — couldn’t hold a candle to the top investment city, Grand Rapids, Mich., which boasts an investor-friendly cap rate of 10.6 percent.
The low ranking caught Graham Taylor, an apartment investment broker with CBRE Inc., by surprise. The Urban Land Institute and Real Estate Investor both gave Portland higher marks for its investment climate in 2014. And investors are undeniably interested..