Would Investing in Portland Real Estate Be a Good Idea?
There are many factors to consider when deciding on investing in real estate. There is the matter of mortgage rate, interest rates, local economies as well as real estate prices. Now, being in a borderless economy, even international trade and political views affect market fluctuations.
The Portland real estate market is one of the most highly touted areas in the US today in terms of investments. According to a report from Forbes.com, the Portland metro area is growing unevenly. The biggest growth was registered in Clark County, with an expected 10,000 new homes in the next three years alongside 8,000 new apartments. Another area, Multonomah County, expects a larger number of apartments at 13,000 while another 10,000 homes would also be built in the same period.
Another reason why there is a real estate boom not just in Portland but in the state of Oregon in general is the low prices of homes in the region. According to data released by real estate analytics firm Axiometrics, as reported on CNBC.com, Portland holds the highest effective rent growth in the country. The rents in the Portland area were 12 percent higher for the last quarter of 2015.
Axiometrics Senior Vice President for Analytics Jay Denton said, "Job growth is really the key thing, then the lack of available units and plain demographics. Young people really like Portland."
Prices of Oregon homes are on the rise, up 9 percent from November 2014, which is higher than the national average. Furthermore, a lot more millennials are choosing Portland, not just because of the many new companies setting up shop here, fleeing from known markets and their high costs of operations. With the new jobs come the employees, seeking to sink roots in the area near their place of work. Eventually, the real estate market would grow alongside the economic growth of Portland.