Is now a good time to get into the Portland rental market? By looking at the most up-to-date Portland rental property trends, investors can decide when to invest in a Portland rental, which neighborhoods to prioritize, and what to expect from your Portland rental investment.
The Portland Rental Market: an Overview
In 2023, housing and rental markets across the country began to cool from the feverish temperatures of the last few years. Compared to that frenetic rental and housing climate, current trends in Portland suggest the market may be stabilizing. According to Zillow, the median Portland rental in August of 2022 was $1,950 a month; in August of 2023, that had gone down to $1,750.
Those rental prices are more in line with the steady growth the area had seen before the price surge starting in the summer of 2022. As a result, now is a great time to invest in Portland’s growing rental community. Steady prices and consistent demand make the Portland rental market a safe and profitable option for real estate investors.
Future Rental Market Trends
Though the price of a rental in Portland has slightly decreased in the past year, demand for housing in our vibrant city remains strong. While prices shot up and then dipped back down, the overall trend for Portland’s rental market has shown strong positive growth despite the pandemic’s impacts. Much of what makes Portland a solid and stable place for investment comes down to its resiliency: with varied industries and highly appealing amenities, Portland remains a destination city for tourists and new residents alike. As a result, Portland’s rental future will likely show continued upward growth.
Investing In Portland Rental Properties
In the past few years, Portland’s real estate market has seen a roller coaster of ups and downs. In the wake of such turbulent trends, it can be difficult to determine what may happen next. However, the past year gives some insight into what the coming real estate market will likely look like for rental investors.
Zillow continues to predict overall increasing values for Portland properties, which means your rental investment will appreciate value in addition to your rental income. While housing prices rocketed upward and then dipped back down in 2022, average housing prices have nearly doubled since 2015 and will likely continue to rise steadily. In fact, 48.5% of sales in the Portland metro area closed over the list price as of May 2023. It’s also clear that Portland homes are attracting interest quickly. For housing sales, the median time from listing to pending is only seven days. This quick turnaround time and frequent willingness to pay more than the listing price shows that demand for Portland housing remains strong.
Though Portland is a smaller city of around 600,000 people, the Portland housing market includes the two million people who live in the greater metro area. This provides many opportunities for landlords looking to find the perfect neighborhood for an investment property.
Is Portland a Strong Rental Investment?
Portland is a much-beloved city offering all the benefits of a Pacific Northwest lifestyle with a wide range of housing prices. Compared to the Seattle markets to the north, the Portland metro area offers more affordable options for renters and investors alike.
Portland’s varied job market means that the area is economically resilient. With major companies such as Nike and Intel based in the Portland area, the job market continues to support a stable population of renters.
High Quality of Life
One of the reasons Portland is a strong rental market is the constant interest in the area’s amenities. Our location is lucky to boast an array of natural beauty for every time of recreation. Mountains, the ocean, rivers, and Columbia Gorge provide exciting opportunities for hiking, boating, camping, and more. In addition, Portland’s art scene and eclectic vibes continue to attract people to the area.
As sustainability becomes important to more renters, Portland remains ahead of the curve with eco-friendly initiatives. The area’s green focus makes it easy to embrace sustainable practices and ensures there will always be a market of people who are happy to pay more for an environmentally friendly living space.
Challenges in Portland’s Rental Market
Every city faces its own unique challenges, and Portland is no different. The housing crisis continues to impact the city, and the frequency of changing legislation means landlords must always stay on top of recent trends. As a progressive city, much of Portland’s rental legislation aims to protect tenant rights. State Bill 611, for instance, recently changed how landlords must handle evictions, while Oregon Ordinance 90.392 provides more guidance on rental violations. While this legislation helps keep Portland’s rental market well-regulated and robust, it also creates complexity for landlords interested in investing in the area. Luckily, working with a quality property management company in Portland is a great way to have the best of both worlds.
Ready to Invest in the Portland Rental Market?
Even considering the potential challenges in Portland’s rental market, our city offers the potential for long-lasting and worthwhile rental investments. With the guidance of experts on the Portland rental market, your Portland rental can be a highly profitable investment. If you’re interested in investing in the Portland rental market or already have a Portland rental and want to get the most out of it, a top-notch property management company like Rent Portland Homes by Darla Andrew can help.
With our experienced and friendly team, we can take an underperforming Portland rental and make it shine. Our marketing experts know how to bring out a property’s best qualities, and our experience in the rental market helps us know exactly how to price your rental for maximum profits. We also handle all the most time-consuming and challenging aspects of running a rental, from tenant communication to navigating potential legal issues. In addition, our 48-hour repair guarantee helps make our tenants some of the most satisfied in the Portland area.
If you’d like to learn more about how we can help your rental business, chat with us any time on our website or by call or text at 503.515.3170.