Average Rent Portland Oregon – February 2022
Thanks to recent data from Rent Café, we know that the average rent for Portland Oregon is $1,667 per month for an apartment that offers 755 square feet of space.
Rents in Portland closely mirror the rest of the country as they continue to climb due to a surging economy and more people going back to work following the Coronavirus Pandemic.
Downtown Portland remains the hottest area for rent growth while other nearby communities see surging rent growth as well.
Some of the hottest communities nearby that renters are moving to in the PDX area include The Pearl, Old Town, Nob Hill, Healy Heights, and Bridgeton.
Yes, Portland does have its expensive areas but the good news is that like other communities nationwide, the PDX rental market also has affordable areas to live including Parkrose, Cully, West Centennial, and Woodland Park.
Portland Rents Rose 30% In 2021
As rents increased by 14% last year, Portland saw rent growth of 29% with many tenants now spending at least half of their incomes on rent.
Is the PDX area still more affordable than other cities? The answer to this question is yes.
How Portland Compares To Other Cities
January Sees Solid Rent Gains Nationwide
January, typically a “tepid” month for rent growth, experienced solid gains to kick-off 2022. The average U.S. asking rent increased $8 to a record-high $1,604, reported Yardi Matrix. Year-over-year rent growth increased to 13.9% last month, but that growth range is expected to decline as monthly increases decelerate compared with the numbers in 2021.
“An $8 monthly increase pales in light of the $22 average monthly gains between March and October 2021, but January’s strong seasonal performance is a sign that the sector’s fundamental drivers have not been exhausted,” said Yardi Matrix.
In six of the top 31 metros, asking rent growth increased year over year by 20% or more, with Tampa, Florida, and Phoenix at the top of the list, followed by Florida markets Orlando and Miami, Texas’ Austin, and Las Vegas. In addition, rates were up by 10% or more in almost 90% of the top 31 metros.
On a month-to-month basis, U.S. asking rents increased 0.5% in January, a 40-basis-point increase from the previous month. However, according to Yardi Matrix, the monthly figures were inconsistent. The gains were led by San Jose, California, which along with San Francisco are the only markets in which rents are still below pre-pandemic levels. Previous rent growth leaders Phoenix and Las Vegas came in at -0.1% last month, but Yardi Matrix cautions that “while it’s too early to say those metros are cooling, growth can’t stay at current levels forever.”
On the single-family rental side, asking rent growth inched down slightly month over month. However, it grew by 13.5% year over year through January. Tampa and Miami led year-over-year rent growth, increasing more than 30%, followed by Atlanta and Phoenix.
“Demand remains strong, driven by households that want more space and amenities such as yards for pets and small children to play,” stated Yardi Matrix.
Will More Housing Help The PDX Rental Market?
There’s no denying that Portland needs more housing because when there’s a huge demand for rental housing combined with a lack of supply, we have a rental market where there continues to be year-over-year rent growth.
The big question is will more housing in the Portland Rental Market help lower rents? And the answer to this question could be yes.
The Portland Housing Bureau has awarded funding to three new projects with the remaining funds from Portland’s Housing Bond. The new projects join 12 others already open or in progress, bringing the projected total affordable homes produced through the city’s first housing bond to 1,859—housing for an estimated 3,834 people. The announcement kicks off a momentous 2022 for Portland’s Housing Bond, which will also see six new buildings open this year.
Two of the newly announced Portland Housing Bond projects will focus on providing Supportive Housing for chronically homeless Portlanders through partnerships with numerous culturally specific service organizations. These partnerships align with the Portland Bond goals—and the Housing Bureau’s commitments—to advancing racial equity and making a tangible impact on ending homelessness. Additionally, with one of the new projects located in Southwest Portland, the City has also achieved its goal to distribute Bond investments across the city and in areas with little to no affordable housing. A fourth project focusing on providing Supportive Housing is recommended for a Metro Housing Bond award.
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