By Property Management Systems – Portland’s leading resource for rental news.
PORLAND, Ore. – Thanks to a recent article from the Portland Tribune and Axiometrics Johnson Economics we know that Portland Oregon Rent is up 64% since 2006 and not just the formally “trendy” parts of Portland are unaffordable, every region across Portland has experienced rent increases, especially between 2011 and 2015 where the highest rent increases were reported in the North Portland Region.
Perfect Storm
Sadly, in the past when rents went up at least incomes also grew at the same time so renters could afford the additional expense but times have changed and over the last 10 years incomes have not increased (for most renters) with rents and this is one of the biggest reasons why Portland is becoming unaffordable for many.
The Portland Tribune study also confirmed that renters have increased dramatically over the last 10 years in many regions across Portland especially in Happy Valley where rents have increased by 18 percent and the Hillsboro-Forest Grove region where rents have gone up by a whopping 71 percent.
Good for Home Buyers
Although renters have had a difficult time over the last 10 years thanks to Portland Oregon Rent increases the good news is that situation is the exact opposite for Portland Oregon home buyers since the Axiometrics study found that the income of home buyers has actually increased over 20 percent in the last nine years alone while the price for a single family Portland Oregon Home has increased by just 16 percent.
Experts Predict Portland Metro Area Will Grow By 400,000 Or More In The Next 20 Years.
Portland Oregon has been booming over the last several years and experts predict that growth will not stop with as many as 400,000 new residents predicted for the metro area alone but the big question is how diverse will Portland be by the year 2035? Will minorities, artists, creatives and low income individuals still call Portland home or will the City of Roses turn into a high income city that used to be well-known for being weird?
Sam Chase, a Metro Councilor has been a leading voice for low income residents in Portland over the last several years and thanks to his hard work he’s been able compile badly needed data about the local housing markets so we really know what’s happening in the region especially in Multnomah, Clark, Washington and Clackamas Counties.
Regional Summit on Equitable Housing
At the recent regional summit on equitable housing which was held one week ago in Portland, Chase released a new report called: “Opportunities and Challenges for equitable housing” which shows facts and figures behind the housing crisis over the last 10 years.
The Regional Summit on Equitable Housing brought officials from across the region including county commissioners and several well-known names from Portland Oregon nonprofit agencies.
Attendees including Sam Chase all united around the concept that it would take more than one agency or organization to solve the housing crisis in Portland and real solutions were brought to the table for fighting the problem of Portland’s lack of affordable housing thanks to Seattle Washington’s Mayor Ed Murray who talked about what his city has been doing to build more affordable housing over recent years after the Federal Government cut its own affordable housing program in half.
Over the years Seattle residents have successfully voted for at least one bond measure and a variety of property tax levies which have been responsible for creating more than 12,000 affordable housing units since 1981.
Mayor Murray has said that he wants to double the number of affordable housing units in Seattle and some city officials in Portland are hopeful we can do the same thing here and some ideas were brought to the table including tax exemptions, height allowances and a variety of other options.
Zoning code changes to encourage more affordable housing were also discussed. One idea was to increase density in urban centers and along transit lines. Another was to revive the so-called “missing middle” of housing — duplexes, triplexes and fourplexes in residential neighborhoods. Metro’s figures showed the construction of residential properties with two to four units has plunged over the years.
Many at the summit also hoped the 2016 Oregon Legislature would repeal the state ban on allowing cities to require developers to include a certain number of affordable units in their projects.
“There are a wide range of tools already available and we hope the Legislature will give us more. But there’s really a lot you can do now,” Chase says.
Source – Portland Tribune
Average Monthly Portland Oregon Rent
Across Portland Oregon rent has increased close to 35 percent in the Southwest Portland region, 40 percent in Forest Grove and 71 percent in North Portland.
As a result, average monthly rents are now $1,828 in Southwest Portland, $1,172 downtown, $1,762 in East Portland and $1,811 in North Portland. That’s according to Johnson Economics, which contributed to the Metro report. Other research shows that lower income people and families cannot afford these rents and have been locating out of the city.
“About 2,300 private (multifamily) units have been built over the last three years and less than 3 percent of them are affordable by any stretch of the imagination. Most are luxury apartments,” Commissioner Nick Fish said during a recent City Council work session on the Comprehensive Plan update that is intended to govern how Portland grows over the next 20 years.
The council became alarmed about the effects of gentrification in North and Northeast Portland after community protests in February 2014. At Mayor Charlie Hales’ urging, the council approved an additional $20 million in urban renewal funds to help longtime residents stay in their homes and build more affordable housing. But ground is only now ready to be broken on the first affordable housing project funded with the money, the 81-unit Grant Warehouse at 3368 N.E. Martin Luther King Jr. Blvd.
Source – Portland Tribune
Where Does Portland Go From Here?
There’s no denying that it’s been tough for Portland Oregon Renters over recent years but thanks to new data from many organizations including Zillow some experts agree that Portland Oregon renters are due to see some relief from rent increases in the coming months.
Hot markets are still going to be hot in 2016, but rents won’t rise as quickly as they have been,” says Dr. Svenja Gudell, chief economist for Zillow, which tracks rents and home prices across the country. “The slowdown in rental appreciation will provide some relief for renters who’ve been seeing their rents rise dramatically every single year for the past few years.”
Source – Portland Tribune
While the experts are predicting that rents will flatten out in Portland and other states nationwide the general agreement among housing industry experts like Svenja Gudell is that Portland will still have one of the 6th most expensive city to live in the United States but thankfully rent increases are only predicted to increase here by 3.8 percent this year vs. 9.7 percent in 2015.
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