The different reports from private real estate companies offer varying perspectives, the consensus is that rents are either stabilizing or experiencing a slight decline.
The Oregon rent cost situation has been under scrutiny, and the latest data from multiple sources sheds light on the evolving rental market in the state
According to the Consumer Price Index (CPI) for the western region, which includes Oregon, from September 2022 to September 2023, there was a 5.8% increase in Oregon rent cost. This represents a lower increase compared to the previous year, where it saw a 6.9% rise from September 2021 to 2022. The CPI, published by the U.S. Bureau of Labor, is a widely recognized measure of housing Oregon rent costs at a national level.
However, Oregon’s unique rental landscape, with widely varying Oregon rent costs across its 13 regions, makes it challenging to obtain a precise picture of the situation using CPI data.
To gain more insight, the public, lawmakers, and government agencies turn to market surveys provided by private real estate corporations like CoStar and local housing groups such as Multifamily NW (MFNW). MFNW’s quarterly report, based on a data set of approximately 90,000 units across Oregon’s major cities, indicates an overall rent increase of 3% year over year, while CoStar suggests a 1.5% decrease.
Deborah Imse, MFNW’s executive director, suggests that the actual situation likely lies somewhere in between these numbers. Zillow’s report, covering Portland, also aligns with this trend, showing a slight decrease in Oregon rent costs.
In contrast, Rent.com, which bases its data solely on website listings, reports a more significant decrease, with Oregon’s overall rent prices down approximately 10%, and Portland experiencing a 12% reduction.
Imse attributes the Oregon rent cost stabilization to a drop in demand due to migration, rather than an increase in supply
To witness significant improvements in affordable housing vacancies, an increase in supply is necessary. This would lead to a cascading effect, allowing renters to move into newer units and free up older, more affordable ones.
While Portland has experienced a notable increase in vacancies, Bend and https://en.wikipedia.org/wiki/Salem,_Massachusetts have seen modest changes, and Eugene’s rental market fluctuates due to its student population.
In summary, while the overall report doesn’t indicate a year-over-year rent decrease, one-bedroom units and studios have witnessed reductions along with higher vacancy rates, marking a potential shift in Oregon’s rental landscape.
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