If you’re considering investing in Portland rental real estate, the market is currently doing great. Today, we’re sharing a few things you need to know about the market and how it’s performing in 2017.
Property Management Portland: Increases Leveling OffYou may have heard about our expansive growth and rent increases over the last two years. At this point in 2017, we are definitely seeing a leveling off. We are back to more standard cap rates and more standard rent increases. Vacancy rates are also adjusting. This means you can expect a 3 to 5 percent increase in vacancy rates as well as rent. Two years ago, some areas experienced rent increases as high as 30 percent. We don’t see the trajectory pointing to that steep of an increase at this time. Parts of downtown are seeing some saturation, as well as the upper end markets in that area. There are some great studios with beautiful views. The luxury end of the market is offering more concessions, and it’s taking a little longer to rent a luxury Portland rental property.
Portland Investors: Desired NeighborhoodsThe most desired neighborhoods are still northeast and southeast Portland. There’s also a demand for the areas that are closer in to the city of Portland. Two years ago, a property that was renting for $1,500 per month could see a rental increase of $200 during a turnover. This year, I’d recommend only a $50 or $75 increase. We’re aggressively keeping rental rates at the market level.
Portland Economic TrendsThere are still good deals to be found, especially with properties that haven’t increased rent in the last two years. The average two bedroom apartment will cost renters about $1,200. The average single family home will be between $1,800 and $2,500 per month. Portland is primed for excellent employment opportunities and phenomenal economic and job growth. We’re expecting a spark in the suburban areas again. Millennials are getting older, and eventually they will seek out suburban neighborhoods that have an urban feel. They’ll want to live outside of the city, but still be in a place that’s walkable.
If you have any questions about the rental market or anything pertaining to Portland property management, please contact us at Fox Management.