By Property Management Systems
PORTLAND, Ore. – Over the last two years, “tight” is the one word that can characterize the Portland Oregon Real Estate market thanks to a combination of factors including historically low mortgage interest rates and HUGE demand from buyers which has made it challenging for people looking for homes in this area.
As of July 2017, the median home price in Portland is averaging $439,000 and the market has cooled somewhat compared to where it’s been during the summer months over the last two years but most analysts predict that we will still home prices appreciate by at least 3. % in the next year.
Builders Can’t Build Fast Enough
As with other Real Estate markets across the United States Portland’s problem is all about supply and demand.
Since the fast-paced growth of the Portland Real Estate market following 2008 we haven’t enough homes for sale to meet the demand of buyers but that’s slowly changing as more home builders are finishing up on projects and releasing new homes to the Portland Oregon Real Estate market.
National builder, Pahlisch Homes, is putting up nearly 100 one- and two-story houses in a new development called Koles Landing, bordered on one side by a greenway with picnic tables and play areas. The new homes, densely packed on small lots, are between 1,000 and 2,000 square feet and are priced from $300,000 to $350,000, below the median home price for the Portland metro region.
Realtor Terry Wollam’s firm is marketing the homes, which he said have been selling quickly, sometimes before construction is finished. “With rents that continue to push up, it is more affordable to buy,” said Wollam. “And so, Millennials are coming into the market, making a greater percentage year-over-year of the buyer pool.”
Wollam said that as young people get established in careers and start families, they’re looking for backyards and good schools in the suburbs. But there aren’t enough homes for sale in the area in their price range right now.
Portland Sees Increase in Tiny Homes
To offset the high cost of housing in Portland Oregon many people have purchased tiny houses in recent years since a home buyer can typically purchase a tiny house for about the cost of a down payment on a traditional home and own it outright.
Are tiny homes better than a regular 3 bedrooms, 2-bathroom home in Portland? That depends on who you ask but the reality is that they have provided housing options to many people in a city that have been hard pressed for housing in recent years.
Want to build a tiny house yourself? An experienced builder with access to great salvaged materials and friends who can help out for free could build themselves a small (84-136 square foot), simple structure for $15,000, much like Dee did.
According to this infographic by Ryan from The Tiny Life, the “average” do-it-yourself tiny home of 2013 – built by its owners with some help from friends and some hired help, and with a mix of salvaged materials and new materials – cost about $23,000. But take that with a grain of salt – since then, material and labor costs have increased a little, and average tiny house sizes have increased significantly. The average tiny house trailer used to be 16 feet long, and now tiny house trailer manufacturers are cranking out 20 to 28-foot-long trailers regularly. So, a DIYer in the same circumstances today might want to think about budgeting $30,000-$40,000 for materials and hired help.
What’s Happening with The Rental Market in Portland?
There’s certainly no denying that the demand for Portland Oregon homes for sale is huge right now and the same goes for the rental market over the last two years.
In July 2017, the average rent in Portland Oregon is $1,667 per month, if you plan on renting a two-bedroom apartment in the city you can expect to pay $1,903 per month while a one bedroom will cost you about $1,543 per month.
The average apartment rent over the prior 6 months in Portland has increased by $81 (5.1%)
One-bedroom units have increased by $80 (5.5%) and two-bedroom apartments have increased by $147 (8.4%)
- Source – Rent Jungle
The demand for rental properties has been a huge asset for investors in Portland Oregon and across the United States as many investors have purchased rental properties in record numbers, this could also be another reason for the lack of available homes for sale in Portland.
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