PORTLAND, Ore. (KOIN) — Rent prices in the city have continued to rise and according to a recent study, Portland has seen the highest percentage increase in rent prices among all U.S. metro areas.
The study, conducted by Redfin, said rent prices in Portland have skyrocketed by 39% from the previous year — more than double the national average increase of 15% year over year.
Bob Whelan, a senior economist with EcoNorthwest, said there’s not enough apartments to fill the demand that’s out there, so rents are starting to go up fast.
He also said in the real estate market, rental prices lag behind changes in housing prices by about two years.
“We all know two years ago housing prices really, really started to take off in Portland, and rents are now starting to rise in response to that,” Whelan said. “This is happening around the entire country.”
While Portland ranked No. 1 among U.S. metro areas in Redfin’s study, no other Oregon city made the top 10 list. According to the study, the nation’s other top metro areas for fastest rising rent rates are:
- Portland, Ore. (+39%)
- Austin, TX (+35%)
- Newark, N.J. (+33%)
- Nassau County, N.Y. (+33%)
- New York, N.Y. (+33%)
- New Brunswick, N.J. (+33%)
- Tampa, Fla. (+31%)
- Fort Lauderdale, Fla. (+31%)
- West Palm Beach, Fla. (+31%)
- Miami, Fla. (+31%)
Whelan said the dynamic is not helping the current housing crisis because while incomes are going up, they’re not keeping up with the price of rent.
When asked if there’s any hope in sight, Whelan said he expects prices to stay this way for at least the next two years.
He said demand for housing may ease as mortgage rates rise to combat inflation, but he reminded renters that their prices may take longer to change based on the real estate market.