Big cities in America are steadily attracting young people who are known to be the moving force of the economy — including the real estate market — all over the country. Portland, Oregon, is one of those cities, and smart investors and businesses know their chance when they see it.
This constant flood of productive individuals and economic activity brings a number of side effects for us, real estate professionals. Like the growing demand for apartment properties. People will look for strategic locations with good infrastructure and accessibility, close to schools, business centers and other civic necessities. That’s no news to a pro, but you only get so many chances before your competitors outrun you — taking all of your prospects, and leaving you without … prospects.
It’s becoming a visible trend: in 2015, Portland scored 3rd place on the list of areas with the highest effective rent growth in the US. As a part of the metropolitan division Portland-Vancouver-Hillsboro, it managed to climb up to share the 1st place with Sacramento, reaching impressive 10.7% during the first half of 2016. That number is particularly impressive, considering that the average growth in the other top 25 MSAs (Metropolitan Statistical Areas) moves between 6 – 7%.
So if you are a real estate professional looking to expand your business in Oregon, you may want to take Portland apartments into consideration and re-think your single-family home vs. apartment/condo strategy.