Even with a cost of living and home prices higher than the national average, Portland is growing at an amazing rate. That's largely due to the health of the robust companies that call the Rose City home. Both Intel and Nike, although not located in Portland proper, are drawing a new generation to the area. And, rather than moving into the surrounding suburbs, Portland's high-wage workers are choosing to concentrate right in the urban center.
Portland, Oregon's largest city and economic and cultural capital, is known as one of the most bicycle-friendly cities in the country. Newcomers also cite the city's burgeoning "drink, food and culture scene," as a lure for moving here, according to CNN Money. In fact, Portland boasts more microbrews and brewpubs than any other city in the United States.
Portland's job growth has recently been among the highest in the country. Still, employment growth is one thing and income growth is another - and Portland happens to be crushing it on both fronts. According to NerdWallet's ten-city list of great cities for job hunters, "The city's workers earn about $49,616, the highest median income of our top 10."
Q2 2015 Portland Rental Market Update
On looking at Portland's performance in the Q2 2015 Rental Ranking Report, it isn't surprising that residents of the Rose City, famous for its slogan "Keep Portland Weird," have recently clamored to also keep its housing affordable. Portland is currently the fifth-best market for rental real estate investment in both the Western U.S. and the U.S. as a whole.
These impressive rankings are largely due to Portland's exceptionally high year-over-year rental price increases of 14.14 percent (the fourth-highest rent variance in the U.S. during that period, and almost three times the national average) and annual property value appreciation of 8.59 percent (the twelfth-highest rate in the U.S. and almost 70 percent higher than the national average). Portland's extremely low vacancy rate of 3.50 percent, almost half the national average, and median age of inventory, a mere 44 days (the ninth-lowest in the U.S. for that metric), further highlight how strong demand for Portland housing is.
Q1 2015 Portland Rental Market Update
Rental demand far outweighs supply in Portland. While the Q1 2015 Rental Ranking Report found Portland to be the fifth-best market for rental property owners in both the West and the U.S. as a whole, its 2.70 percent vacancy rate is the lowest by far out of the 75 markets it evaluated and is a whopping 164 percent lower than the national average vacancy rate. If the extremely high demand for Portland housing implied by these stats aren't enough to prompt you to take a good look at investing in Portland rental housing, read on.
The median age of Portland's housing inventory is only 46 days, the ninth-lowest median age of inventory in the country and significantly less than the national average of 70 days. Its property value appreciation rate of 9.03 percent is alluring, and was the 13th-best in the country for the year ending in Q1 2015. These stats indicate that demand for Portland housing is exceptionally strong, and will likely only continue to grow.
The Q1 2015 Rental Ranking Report also ranks Portland as the fourth-best in the nation for the property taxes and annual insurance premiums rental property owners must pay. This means the costs of owning rental properties in Portland is lower than the vast majority of the country.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q2 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the median number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Portland rental property?
Thinking about renting out a property in Portland? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.