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According to the U.S. Census, it's estimated that Portland has a population of 652,503. With thousands of people moving to Portland each year, it shouldn't come as a surprise that there's a lot of misinformation surrounding rental valuation and property pricing in the city.
Some sources might tell you that rent is down, while others report it's skyrocketing.
So what should you believe? What are the rental property pricing myths you need to know before moving or investing in Portland real estate? In this rental price strategy guide, we'll answer these questions so you have clear expectations regarding property pricing.
Myth #1: "Portland Rent Is Always Cheaper Than the National Average"
Portland has seen a steady increase in rent prices over the past year, reaching $1,800 on average for rentals here according to Zillow. This places it well above the national average of $1,595, a number that has been steadily going down as Portland continues to climb.
Although the city remains more affordable than places like San Francisco or New York, expecting a "cheap" rental market could leave newcomers surprised. If you're considering moving to Portland, plan on performing a real estate market analysis to set realistic expectations.
Myth #2: "New Apartment Buildings Are Causing Rent to Go Up"
Many who live in Portland have a common misconception that new construction of apartments is what's driving rent up. They assume that all the new rental properties being built are simply being set higher by developers who want more money for the simple fact that the building is new.
However, economics tells us something different. For almost 15 years now, Portland has had an ever-increasing demand for rentals in the city. With such a tight market for tenants wanting to live here, prices have gone up to remain competitive. Therefore, it's the demand for rentals here that's causing rent prices to increase, not the development of new properties.
Myth #3: "You Can Easily Negotiate Rent in Portland"
The idea that tenants can easily negotiate rent is another myth that doesn't hold up in Portland's rental market. Due to high demand, especially in sought-after neighborhoods, property owners are often in a position to hold firm on their home rental value.
While there might be room for negotiating small benefits like parking fees or pet policies, renters should not assume they'll get substantial discounts on rent itself. With plenty of prospective tenants, landlords have little incentive to compromise significantly on price.
Myth #4: "All Affordable Rentals Are in Outlying Areas"
Another common misconception is that renters must look far from the city center to find affordable rentals. While Portland has upscale areas with premium rent prices, it also has diverse neighborhoods that offer reasonably priced options.
Emerging areas within Portland's central areas often provide more affordable housing along with convenient access to amenities and public transit. By exploring different parts of the city, renters can often find a good balance between cost, location, and lifestyle.
Need Help With Rental Valuation? Contact DJC Management
We hope this guide helped you learn more about rental valuation in Portland. Here at DJC Management, we know the unique challenges landlords face when it comes to finding the right rental price.
Too much, and you'll have long vacancies, but too little and you'll miss valuable income. Luckily, we use our years of investment property appraisal experience to not only manage your property but get as much money out of it as possible. So if you're ready for management services, get in touch with us today.
