Portland Rental Market Gets Tight

While the homes sales market is stuck in a low gear, the Portland rental market has been in overdrive, with rents rising and vacancies shrinking.

A recent article in Portland’s local daily newspaper highlights the increased demand for apartment rentals, as well as the rising rent rolls. According to local property managers, average rents in the Portland area have risen 8% in the past year. The average 2-bedroom, 1-bath apartment in the Portland metro area runs $743 a month, although there is a wide range of pricing from area to area (see chart below).

While most property managers plan on an 8% vacancy rate (average 1 month per year), recent vacancies are below 4% (even lower in the city core). And because new apartment development slowed during the recent housing downturn, new inventory will be slim until developers find the wherewithal to build again — meaning rents aren’t going down anytime soon.

Are these reasons to consider a purchase instead? Not if your job situation is tenuous, or you’re new to the area, or the responsibilities of owning aren’t your thing. But at some point, the trade-offs may be worth a second look.

Portland Apartment Rental Market

Data source: Metro Multifamily Housing Association, via The Oregonian Business section. Full coverage at Oregonlive.com.

October 22, 2011 · Filed Under First-Time Buyers, Livability, Market Activity

Comments

2 Responses to “Portland Rental Market Gets Tight”

  1. intaglio chick on October 22nd, 2011 7:46 pm

    Hi, what areas of SE and NE Portland are considered ‘close-in’ nowadays? Is anything West of 39th ave. considered ‘close-in’ or is close-in extending to 82nd ave?

    Thanks!

  2. Ron Ares on October 22nd, 2011 8:24 pm

    I don’t have the published report from the Metro Multifamily Housing Assn, but I suspect that 82nd is the dividing line between ‘inner’ and ‘outer’.

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