The State of the Portland Rental Market

Portland has always been a haven for the unique and unexpected, and the area’s rental market is no different. The Portland metro area covers many neighborhoods. From the upscale luxury living in the Lloyd District to the tucked-away University Park, or trendy tight-knit Kenton to hip and happening Alberta street. Suburbs like Beaverton and Hillsboro provide options for people who want to live farther from the city itself. Despite recent challenges, Portland remains a highly desirable place to live. What’s more, the high demand for renting and buying homes has kept pace. All in all, it’s a great time to own a Portland rental. 

As a property management company in the area, we have an insider’s view of the current Portland rental market and years of experience analyzing it. If you own a home in Portland and are thinking of turning it into a rental, or are already managing a Portland rental, here’s what you need to know about the current market and our predictions of what’s to come. 

The Portland Rental Market Now

One thing that makes the Portland rental market special is its resilience. Portland has faced many challenges over recent years, including the COVID-19 pandemic. While the economic stress of the pandemic has cooled rental markets across the country, Portland has continued to thrive. Most of the area hasn’t experienced a slump in rentals despite recent challenges. Only downtown condos have experienced a notable decline in rentals. The highest-demand rentals in Portland are single-family homes, which fly like hotcakes off the rental market. Two-bedroom homes between 700 and 1,100 square feet located in Southeast Portland are our most popular rentals. We often see these types of home renting within mere hours of being posted. 

When it comes to buying real estate, the market is exceptionally tight. People wanting to buy a Portland home face a severe shortage of inventory and higher prices as a result. In fact, the median sale price of a Portland home is near twice the national average, at around $530,000. On top of high prices, the real estate market has continued to trend upwards at 11.6 percent year-over-year. With such high prices for Portland homes, renting is a more affordable option for many area newcomers. This is probably why the Portland rental market has remained so competitive. The demand can sustain it even throughout an overall downswing in the economy. 

What Makes Portland So Special?

Sure, the rental and housing market is booming. But to understand why that is–and to predict how the market will behave in the future–it helps to understand what makes Portland so appealing to renters in the first place. Oregon is consistently ranked as a destination state and draws in new residents every year. Luckily, many of Portland’s best attributes aren’t dependent on changing factors like the economy, ensuring a more stable market. 

Proximity to nature and outdoor recreation is a huge draw for many new residents. Portland is an hour away from the coast in one direction and the mountains in another, and an even shorter drive can take you to jaw-dropping hikes and views in the Columbia Gorge. Fans of water recreation are never in danger of boredom, with two rivers bordering the city itself. Portland is also just north of Oregon’s wine country, with countless tours to explore the area’s vineyards. 

Whether you prefer beer, wine, or kombucha with your meal, the restaurant scene in Portland will not disappoint. Aside from a large number of natural attractions, Portland hosts an eclectic and unforgettable dining scene with a vast scope of cuisines and experiences. The broad number of options paired with a general focus on local and vegan-friendly fare means that there’s something in Portland for every palate. The area is famous for its coffee, too; you can barely walk down a block in the city without tripping over an adorable locally-owned coffee shop. From young professionals ready to explore the local nightlife or families looking for a quiet place to settle down, Portland always has something new to offer–and that’s a large part of what makes it so attractive.

The Future of the Portland Rental Market

With real estate remaining pricey and property values anticipated to continue increasing, our predictions for the Portland rental market are that it will stay strong and vibrant into the foreseeable future. The next three to five years should continue the current trend of rising property values, which will keep interest in rentals high. 

One change we anticipate in the Portland rental market has to do with management. Among landlords in the Portland area, three-fourths still self-manage their properties. Though self-management can be profoundly fulfilling for small landlords with high standards for their rentals, it is also incredibly time-consuming and often inefficient. As self-managing landlords begin to look at retirement or want more time in their busy days, many have started looking at property managers like Rent Portland Homes by Darla Andrew. 

Portland Landlords Benefit From Property Managers

We know how much Portland landlords value their rental businesses. Our team helps landlords make the switch from self-management to our services in a seamless transition. Though we offer a wide variety of services and can handle all the details of property management, we also are happy to accommodate landlords who want to keep a hand on the wheel. Our flexible services allow landlords to continue participating in the upkeep of their rental, with the option to complete repairs and maintenance themselves within the 48-hour window we promise our tenants. 

On the other hand, we’re happy to step in and pick up right where you left off to keep things running smoothly without any work on your part if you’re tired of the hassle of self-management. We handle all tenant relations, from screening new tenants to contacting them about repairs. Overall, we help landlords make the most of their rental property while putting in only as much work as they want. If you’d like more information, we’d love to chat! Call or text us today at (503) 515-3170 or fill out the contact form on our website.