Are Millennials Losing Interest In Portland Oregon?
2020 has been a huge year for the rental market nationwide, especially in Portland, because the face of the rental market is changing as more Millennials have been moving out of the PDX area this year rather than moving in.
Thanks to a recent report by Rent Café, we know that Portland is no longer at the top of the list of move to cities for Millennials as rental applications from Millennials have dropped about 40% this year, lowering the city to #22 on the list of destinations where millennials want to move.
What’s Behind The Trend?
One reason why we’re seeing fewer millennials moving to Portland this year could have something to do with the fact that more Millennials are working from home than in years past.
Only 60 percent of Millennials said they feel either as productive or more so while working remotely, compared with 67 percent of Generation Xers and 72 percent of Baby Boomers. Millennials also said they felt less connected to their employers; 60 percent said they were more anxious during the COVID-19 epidemic, compared to roughly 56 percent of Generation Xers and Baby Boomers. Millennials are sleeping and exercising less than older people amid the crisis, according to a study by Vitality Group, a Chicago-based health and wellness firm.
As 2020 unfolds, Portland is no longer on the top Millennial hubs list. The city has been outranked by up-and-coming West coast favorites, like San Jose and Los Angeles, which boast higher shares of Millennial rental requests – over 44%.
Where are the Millennials going? Thanks to a recent report, we know that most Millennial renters want to buy homes but they’ve faced challenges with saving the 20% needed down payments.
In most cities across the United States, it can take about 13 years for a Millennial to save the money that they need for a down payment on a home, while in Portland it can take about 5 years since Portland rents and cost of living are still lower than other cities in the United States.
Ultimately, when it comes to the cost of living and saving money to buy homes, we may see more millennials relocating to Portland in the coming months once people realize that Portland is a more affordable city to live in than major cities along the West Coast.
What Will The 2021 Rental Market Look Like?
We’ve seen a lot of instability in the rental market this year due to COVID-19, lockdowns, and social unrest but the big question is what will 2021 hold?
The good news is that despite the instability that we’ve seen this year, apartment rents are actually falling in Portland and are down by 5.7% year-over-year.
This is huge news considering the rent increases that Portland has seen in the last 5 years and the fact that Portland is only one of nine cities that had similar rent decreases.
When you combine the affordability of Portland area rents, along with the quality of life and things to do in the Portland area, we will likely see more renters come back to Portland in 2021.
Contact Rent Portland Homes – Professionals
For more news about the Portland rental market, or to speak with us about our property management services, contact us today by calling (503) 447-7735 or click here to connect with us online.
