Portland, Oregon’s largest city, has grown in popularity over the past few years. With its eco-friendly and thriving art scene, it’s no wonder people are drawn to the Portland real estate market. A healthy number of parks, museums, mini-breweries and outdoor activities means people don’t come here just to visit; they come to enjoy what Portland has to offer all year round.
Portland Real Estate Current Conditions
- Average home prices and rents in Portland have risen and are still on the upward trend.
- The population over the past year has increased by 9.6 thousand households.
- The foreclosure is at an all-time low of 0.1%.
Buying a home in Portland
Housing prices in Portland
Median home value in Portland: $ 490,000
National average: $ 371,000
House prices in Portland have been trending upward over the past 5 years. The cost has increased by nearly $ 200,000 since 2016 and continues to rise. Portland posted 17.8% growth last year. Nationally, home prices have risen by $ 143,000 over the past 5 years. But only in the last year housing prices in the country have risen 22.4%. This impressive growth marks a major change in the housing market. Homeowners are thrilled to know that their home is worth more than ever, while potential buyers may struggle to afford the price increases and competitive nature of the current real estate market.
As in much of the country, housing supply in Portland is currently low. The supply fell by almost 2 months compared to last year. At the national level, statistics show that the number of homes available is only 1.1 months. With such a shortage of homes, the significant demand in the area makes it difficult for buyers to market. Multiple offers and overpriced offers are now the norm. The competition is fierce and not everyone has the money to play. Sellers, on the other hand, are delighted with how much they get for their homes. This is a great time to sell and make a profit – if you have somewhere to go. If not, you are struggling to get a new home, as are many other up-and-coming buyers.
Buying property in Portland
Rising house prices have forced some people to rent instead for a year as they try to “ride out” current market conditions. Low job vacancies and higher rental prices mean lucrative opportunities for investors interested in owning rental properties. The demand for rent has led to an increase in rental prices.
Portland rental prices
Average rental price in Portland: $ 1,608.
National average: $ 1704
Portland rental prices, like home prices, have risen in recent years. Rentals have increased 3.6% in the last year alone and nearly $ 300 in the last 5 years. At the national level, the numbers are very similar: over the past year they have grown by 3%, and over the past 5 years – by almost $ 300. Investors looking to buy property for rent will spend more on buying a home in this competitive market right now, but rental prices continue to rise as well. However, it is worth noting that the average home price in Portland is much higher than the national average, but their rentals are lower.
Rentals in Portland
Portland Rental Vacancy: 5%
National average: 6.1%
Portland rental jobs tend to fluctuate throughout the year. The lowest vacancy rate was around October, regularly dropping to 2-3% annually. Even though vacancy rates have fluctuated, Portland as a whole still has little vacancy, which means it is a strong rental market for investors. On a national scale, the share of vacant space for rent over the past 5 years has been stable at the level of 6% to 7%. Portland has its ups and downs, but it still isn’t getting too high to be a concern for rental property investors.
Portland foreclosure foreclosure
Portland foreclosure rate: 0.1%
National average: 0.3%
Foreclosures are now at an all-time low. They have continued to fall over the past few years to almost zero. Due to this housing shortage, buyers and investors have applied for buyouts for renovations. Foreclosures are rare and not optimal for investors. It’s harder to get a great deal and profit from property. This situation benefits the real estate market as a whole, as it helps to increase the value of nearby properties and the appearance of the community. However, for investors, less foreclosures arise, and competition becomes stronger when one appears.
N Hayden Island Dr. / N Tomahawk Island Dr.
A popular destination in Portland for coastal condominiums is N Hayden Island Dr / N Tomahawk Island Dr. Home prices here are just under $ 200,000, and rent is $ 1,846. Small and medium-sized private houses and apartments are located here. High-rise buildings overlooking the Columbia River attract people here. This is mainly occupied by the owners, the vacancy rate is high here – almost 20%. However, since this is a holiday destination, 12.1% of the housing is only seasonally occupied. Residents have jobs in professional and executive careers as well as sales and service. This upper middle-class neighborhood is made up of more than 13% of residents who work from home and more than 30% are divorced.
An expensive area in Portland is called Portland Heights. Homes in this suburb cost over $ 1,000,000 and the average rent is $ 2,645. Most of the properties here are medium to large single-family homes and apartment complexes built before 1939, making it a historic area. The vacancy rate is currently 10.8% and houses are mostly occupied by owners. The inhabitants here are known as “urban sophisticated”, passionate about art and theater, as well as highly educated people.
University Park / University of Portland is a college district that currently enrolls 40.5% of residents. The median home price is $ 524,973 and the rent is around $ 2,200. The houses here are small single-family houses and apartments. The combination of owners and tenants at University Park and 8.1% of vacancies means this is a popular place to live. Residents here enjoy the pedestrian accessibility and safety of the surrounding area, as well as cultural diversity.
Economic condition of Portland
Like all big cities, Portland the economy was negatively impacted by the pandemic in 2020… It takes time for everything to return to normal. Increasing job opportunities and increasing the number of households are helping, but unemployment is still higher than it was before the pandemic.
Portland unemployment rate: 6.3%
National average: 6.9%
From 2016 to January 2020, Portland’s unemployment rate tended to decline. The rate fell to 2.8%. Then there was a spike in unemployment as the pandemic turned the world upside down. Firms closed, jobs disappeared, and people fought. Portland manages to return to reasonable numbers, but must continue to strive to achieve pre-coronavirus levels. An 86,000 job growth over last year and a decline in unemployment have boosted the economy here; it just takes a little longer to return successfully.
Top employers in Portland
Portland has a strong technology industry. The largest employer is Intel (NASDAQ: INTC) with 20,000 employees. Intel Oregon is Intel’s largest R&D, manufacturing and engineering site in the world. Known as a great place to work, employees are offered many benefits and programs, as well as clubs and amenities.
Nike World Headquarters (NYSE: NKE) is located near Portland and is another leading employer with 12,000 employees. In addition to selling sportswear and accessories, research laboratories and design studios operate at the headquarters. He offers a variety of positions in many areas including manufacturing, human resources, technology, and accounting.
Banks in Portland such as US Bancorp (NYSE: USB) and Wells Fargo (NYSE: WFC) are also top employers. It offers thousands of personal jobs as well as remote positions in customer service, management and financial consulting.
The bottom line in the Portland real estate market
Portland excelled at its “new usual”. After the pandemic hit major cities so hard, Portland has faced many challenges. Housing prices and rents continue to rise, job opportunities are opening up and more households are emerging. This large city is confidently moving towards a prosperous future.