In 2015, United Van Lines named Oregon as the year's most popular moving destination. Workers from different parts of the US such as California and New York flock to the Beaver State. Why is that so?
The reason behind the influx of homebuyers that caused Oregon's real estate boom is quite simple. It is because the state has relatively cheaper housing prices compared to other markets.
In the early fall of 2015, Portland replaced Oakland, California, as the local market with the highest annual effective rent growth among the nation's top 50 markets. According to data from real estate analytics company Axiometrics, rents growth in Portland increased by 12 percent in the fourth quarter of 2015 compared to 2014.
"This year's data reflects longer-term trends of people moving to the Pacific West, where cities such as Portland and Seattle are seeing the combination of a boom in the technology and creative marketing industry, as well as a growing 'want' for outdoor activity and green space," explained Michael Stoll, economist, professor and chair of the Department of Public Policy at the University of California, Los Angeles.
Now that demand is higher than supply available in Oregon's housing market, prices are beginning to surge. In November 2015, home prices have already increased by 9 percent. However, this price hike is expected not to affect the demand at all as analysts predict that the state will remain attracted to home buyers in 2016.
"Regionally, we are beginning to see fissures, with slowdowns in some Texas and California markets, but the Northwest and Southeast remain on solid footing," CoreLogic Chief Economist Frank Nothaft assured.
Moreover, Portland is also seeing a lot of millennial buyers. Millenial home sales in November 2015, were 11 percent higher than the previous year's, according to RMLS, a real estate listing company.
