2018 is almost ready to be wrapped up and if you owned rental properties in the Portland Oregon area, or elsewhere in the United States, you had another great year but the BIG questions is what will 2019 hold for rentals?
Is demand for rentals expected to increase next year? Will we continue to see Millennials, Baby Boomers and Gen X searching for rentals in the PDX area or will it decline?
In this article we will answer these questions and provide you with some insight into what you can expect with the local rental market next year.
Yes, Demand For Rentals Will Rise In 2019
No matter what direction the markets or the economy head in next year the reality is that demand for rental properties is only projected to increase in Portland Oregon, and the United States. Why? The reasons are simple:
More people continue to rent vs. buy homes in the United States
Renting is often more convenient than buying, especially for people who are relocating to areas like Portland
There are more renters in the United States than ever before, especially from people who are in the Baby Boomer and Millennial Generation.
With the increased demand for rental properties in the United State next year we can also expect more investors turning their attention to investing in real estate as stocks and other investments are projected to perform poorly for a large portion of next year.
The Need For Affordable Housing
If house prices keep on marching up, America’s affordability crisis is only going to intensify. A report from Smart Asset says you’d need to earn over $73,000 per year to be able to afford an average apartment in America’s top 10 cities. You’d need to make close to $100,000 a year to live in what most would consider inexpensive Chicago, IL. You’d need to make well over $100,000 a year to live in a desirable location within San Francisco.
Nationally, the Out of Reach report published by Fast Company says you need to earn at least $22.50 an hour to afford an average 2-bedroom apartment in America. Many Americans might argue it takes a lot more than that. Also consider the same report only highlights three classes of jobs that earn enough to pay this rent. Those are registered nurses, software developers, and general managers. Top executives, self-employed business owners, and real estate investors probably make more—though most aren’t going to want to settle for a decent 2-bedroom apartment after all the work they’ve put in to get to that level.
Thankfully, in the Portland Oregon area and many other cities across the United States, affordable housing is still available and the average renter can thrive on their salary while living in a rental property. This is why owning rental property will be the very best choice for investors to make in 2019 because owning a rental property will provide investors with stable returns on their investments while providing the renter with affordable housing.
Get Property Management In Portland Oregon During 2019
If you’re planning on growing your portfolio of rental properties in Portland next year one of the best things you can do is hire a professional property management company like Property Management Systems to manage those rentals for you.
At Property Management Systems we specialize in all phases of property management including: rent collection, maintenance, customer service, property marketing and more.
For a free consultation, contact us today at (503) 515-3170 or click here to connect with us online.