Rental fees in apartments in portland or have taken a drastic jump since 2010, more than 41%, to $1,242, according to a local real estate firm. Back in 2013, a Seattle developer purchased a plot at Northwest Thurman Street and raised a five-story building with 54 units. The units are typically very tiny, some the size of a college dorm room. These “micro-units”, as they are commonly called, are averaging about 250 square feet and may go for $995 or more each month.
These micro-units, hipster hovels, units, as the natives call them, are part of the real estate gold rush, and as a result, there are now hundreds of these apartments in Portland OR proper and is helping to propel housing costs to go through the roof.
Last January, a new 165 unit, four story apartment complex was raised in the commercial district of the city of Portland, and it filled up in just six months. After increasing the rent from $900 to $1,300 per month, the developer saw more expected results.
Despite the more than 22,000 new apartments going up in the Portland metro area since 2012, particularly, more than half of them in the inner city, vacancies continue to be almost nonexistent. Naturally, this has been a boon to the owners of those apartments; unscrupulous owners may hike up the rent, so “buyer, beware”.
Why such a housing boom in Portland? Thousands of highly paid technology workers are now currently working in the central district of the city. Many transplants from Seattle or the Bay Area excitedly lap those apartments up, as they view housing prices in the city as a real bargain.
Portland apartments for rent are hovering at around 3%; this gives the owners of these apartments enormous leverage in raising rents. Struggling renters in apartments in Portland OR have experienced a whopping 15% year over year rent increase average in the past 12c months. Devastating!
Devastating for renters because at these rates, they are coughing up nearly 35% of their income on housing, up from about 25 percent. West Coast communities are paying out 40-50% of their income on rental housing needs.
Huge demand is for Portland’s inner-city apartments, particularly in the Northwest and Downtown staying vacant for the shortest time – despite the relatively high cost per square foot. Denser neighborhoods with adequate transit and amenities, such as grocery stores, and the like, appear to be the desirable option. At least, it is an answer.
Rent and utilities are supposed to be no more than 30 percent of your income, but sadly, that may be unattainable for the time being in Portland.
The future looks a bit more promising for rental apartments in Portland OR lately. Several property groups are involved in either starting working or planning the work soon, for new housing. Whether these will be affordable or not, who’s to say. Plus, do not take that deep breath yet, as it takes nearly two years to build a large apartment building.