The West Coast housing market continues to climb. Not only in price, but in the geographical span of the coast. This year, Portland, Oregon, saw a tremendous increase in demand for housing. Read on for an overview of how the market has changed and who it is affecting the most.
Portland has seen a double digit rise in home prices over the last year. Matched with the equally low inventory, the effects have created a volatile market that leaves many buyers overbidding and exploring new neighborhoods. Many buyers have noted that houses enter and exit the market in a day or less–creating a difficulties for buyers who live out of town or are trying to relocate to the area. This can be a good thing for a city, for it gives less than desirable neighborhoods an added advantage towards urban revival.
Renters Hit Hard
Renters face the most challenges in the city’s housing boom. The average rental unit has increased 13% over the last year. Another challenging problem? Landlords looking to renovate existing apartments are choosing to evict current tenants to flip the home and attract a high priced rental value. And while it’s cheaper to pay a mortgage in Portland than to rent a unit, buying a home still requires that individuals make a down payment–a luxury that many families cannot afford at the moment.
Rise in Suburban Homes
Homes in suburban districts right outside the city have also seen significant growth. In Sellwood, the price of homes has risen 19.5% this year. The rise has led to the planning of a massive single family home development.
Understanding the Portland Boom
For years, Portland has simmered, biding its time before its explosion in popularity has reached maximum levels. Today, the city boasts a large population of young people, a thriving job market, and a reputation for being a cultural den for foodies, environmentalists, and activists. Bolstered by its host of trending colleges and universities, Portland will continue to see a demand for housing now–and for the unforeseeable future.