Every year, REALTOR® Magazine produces a list of the hottest rental markets in the U.S. This year, Oregon is in the #3 spot, continuing to attract a large number of existing and new residents to its main resource sectors: manufacturing, timber, fishing, and agriculture. GDP growth for 2012 was 3.9% and the population growth at 0.80%. And if you place a lot of stake in media reporting, you might think the state believes its attractiveness to be a hindrance.
The market is so appealing, in fact, that you can find many online articles, blogs, and ads with titles similar to “Oregon: Renters’ Hell,” with the rationale being that it’s nearly impossible to find a place to rent. Oregon only has about a 3% vacancy at any given time. That’s bad for renters, but really good for investors and property managers.
Portland Rental Market
Portland leads Oregon cities in population growth, and this is only expected to continue. The area, according to experts, is expected to see population growth of at least 60% over the next 50 years. Manufacturing is in large part responsible for this boom, with well-known brands such as Adidas, Nike, and Intel calling Portland home.
Here are some interesting facts about the Portland rental market from EZ Landlord Forms:
- The vacancy rate is currently at 3.3%
- The effective rent at the end of 2012 was $848
- The effective rent growth is forecast at 4.7% in 2013
- Thousands of apartments are currently under construction to try and match growth
- Studio departments are in the highest demand, with rents having grown 30% in just the last year for these units alone
Central Oregon Rental Market
The Central Oregon Rental Owners Association conducts an annual survey in cooperation with Housing Works. The main cities are Bend, Redmond, Madras/Culver, Prineville, Powell, Butte, La Pine, Sunriver, and Sisters. The 2013 results were recently released and provide the following insight into these rental markets:
- There is a total of 4,618 rental units in the area, with only a 1% vacancy rate for all housing types (single, apartment, duplex)
- Bend’s average rent on a two-bedroom unit is $704; there are no vacancies in Bend (including South Bend) at the time of the survey
- La Pine also has no current vacancies, but typically offers a tw- bedroom unit for $547.58 on average
- Taking all cities in the area together, those multifamily properties with 20 or more units offer a two-bedroom unit for an average of $588.30 (two before 200) and $753.68 (two after 2000); there is an overall vacancy rate of only 2% in these larger properties
Also Making the List…
Before you make a mad dash to position your property management firm to multifamily property owners in the Portland area, stick around to learn about the other nine states that also made the list of the fastest growing rental markets. Texas, North Dakota, Washington, Minnesota, California, Utah, Indiana, Tennessee, and West Virginia all made the list.Read more on Real Estate Markets