PORTLAND, OR. – Thanks to a recent article from the Portland Tribune we know that rents for Portland Oregon apartments increased by at least 14 percent between the month of February and March 2016. This was the biggest increase in the country, and what’s shocking is that rent for a one-bedroom apartment in Portland Oregon has increased to just over $1,300 per month from $1,143 per month.
What’s next for Portland?
There’s no denying that we ended 2015 on a high note with the City of Portland Oregon implementing measures to slowdown rent increases by requiring landlords to give their tenants a 90 day notice that their rents will be increased but these new measures are seemingly doing nothing to protect tenants especially those on fixed incomes from inevitable rent increases like we’ve seen the last 30 days.
Will rents continue increasing in Portland Oregon? The answer to this question is only time will tell especially since we are just entering Spring and with warmer weather coming demand for rentals only increase in the Portland Oregon area and we are sure to see further rent increases in the coming months.
Where Is It Still Affordable To Live In The Portland Area?
So if you’re like most people who are anticipating a rent increase in 2016 you may be asking yourself the question are there any affordable rentals left in the Portland Oregon area and the answer to this question is yes but, you have to be willing to travel at least 30 minutes outside of Portland to find those more affordable rentals.
Recent stats on rent jungle.com show us that the average rent for an apartment within 10 miles of Portland Oregon is currently $1,435 per month but when you move farther outside the city you will find the following rentals:
Beaverton – Average Rent: $900 per month for 1 bedroom and $1,200 per month for 2 bedroom.
Gresham – Average Rent: $925 per month for 1 bedroom and $1,050 per month for 2 bedroom.
Tigard – Average Rent: $825 per month for 1 bedroom and $1,195 per month for 2 bedroom
Vancouver, WA – Average Rent: $975 per month for 1 bedroom and $1,250 per month for 2 bedroom
Portland Not Most Unaffordable Place to Live In United States
If you’re like some people in Portland Oregon who are considering relocating out of the city, and Oregon as a whole, there is both good news and bad news to report. The good news is that there still are plenty of cool cities to relocate to across United States but rents are still only slightly less affordable than they are in Portland right now.
For example: Austin Texas used to be an affordable city for musicians and music fans alike from across United States to relocate to but since late 2010 over 120,000 people have relocated to the Austin area because Austin is quickly transforming from a music city to another tech have in the United States and the average rent in Austin Texas for a one-bedroom apartment is roughly $1140 per month.
Let’s say that you wanted to stay on the West Coast, the average rent in Seattle is currently $1,604 per month for a 1 bedroom apartment while the average rent for a 2 bedroom apartment is $2,125 per month.
Down in San Francisco rents have increased faster than anything else in recent memory and the average rent for a 1 bedroom apartment in SF is currently $3,590 per month.
Why Are Rents Continuing To Increase Nationwide?
Rent increases can be attributed to a wide variety of factors including more people relocating to Portland, San Francisco, Seattle and other big cities across United States but, the most common reason economists blame rent increases on our millennials who unlike previous generations seem to be turning away from the concept of homeownership rather than opting for buying properties unlike their parents and grandparents from previous generations.
There’s no denying that the concept of home ownership may be scaring off some millennials in 2016 and there’s good reason behind it especially since many millennials witnessed their parents, coworkers, relatives and friends lose their homes to short sale and foreclosure after the last real estate crisis and they don’t want to make the same mistake of getting in over their heads by committing to a mortgage that they cannot afford, especially during the shaky economy
Sadly, it’s not just millennials who are staying away from the home ownership, everyone from Generation X to the Baby Boomer generation has been renting homes in Portland and across United States over the last two years rather than purchasing like they may have done in the past.
Home Builders Not Serving the Entry Level Generation
Besides the most common reasons why Millennials to Baby Boomers are not buying homes right now another alarming reason why home ownership is at the lowest level that it’s been in generations could be attributed to home builders across United States who over the last five years have been building more properties above 2,400 square feet, or bigger, rather than building even mix of properties ranging from 1,200 square feet to 3,000 square feet like they may have done a generation ago.
Surveys by the National Association of Home Builders show that less than 20 percent of new construction in recent years has been for entry-level properties. Before the recession, that share typically hovered around 30 percent. More than half of single-family houses sold in recent years have been 2,400 square feet or larger, compared with about 40 percent a decade ago.
“This is the first time in the supply history of housing where, for whatever reason, a giant new generation is not being served,” said G.U. Krueger, a Los Angeles housing economist who does research for CalPERS’ advisors and other investors. “To me, it’s incomprehensible.”
Whether the lack of supply is hampering demand, or the other way around, isn’t clear. But millennial-generation home buyers have not emerged in expected numbers, in part because they are staying single or getting married and having children later in life.
That trend has been building for decades: The share of 18- to 34-year-olds who are married and with kids has fallen steadily to 20 percent from almost 50 percent in 1970. That means fewer people feel compelled to go out on their own or move out of apartments they share with friends and other roommates.
Source – Virgin Island Daily News
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