Rent increases slow dramatically in Portland
Portland's red hot rental market is finally cooling off, according to a new report.
After experiencing some of the highest rent increases in the country in recent years, the average price of a one-bedroom apartment only increased 1.09%, rising to $1,436 in 2019, according to ABODO's 2019 Annual Rent Report & Review.
The average price of a two-bedroom apartment increased 1.41% to $1,508 last year, the report said.
That is far less than the double-digit rent increases of some years, and well below the cap of 7% plus inflation imposed by the 2019 Oregon Legislature.
Statewide, Oregon had an average one-bedroom price of $1,103 and a monthly increase, on average for the year, of 1.23%.
ABODO, a rental market analysis company, attributes the slowdown to the boom in apartment construction that is finally beginning to catch up with demand, both in Portland elsewhere.
"In many of the nation's hottest real estate markets, construction booms have brought a recent reduction in average monthly rents. Not by a ton — and not enough to make any of these cities into bargains — but enough to relieve at least some of the pressure on renters," according to ABODO.
"It's simple economics. Increased supply is doing a better job of meeting demand. Last year, apartment construction reached a 30-year high, with much of the growth concentrated in major cities such as Dallas, Houston and New York, but also expanding into smaller, extremely popular cities like Denver, Portland and Austin."
ABODO predicts rent increases could continue slowing in Portland.
"We anticipate that the rent growth might begin to slow in cities like Portland, because of the huge boom in multifamily construction and luxury developments coming to market. The development and construction of new rentals is will ultimately bring more units to market for local renters and limit the demand and minimize leverage that landlords currently hold," the company said.
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