Expect Portland Rents to Jump in 2013

Posted by Bob Broad on Wednesday, December 5th, 2012 at 11:43am.

If your investment needs have changed and you're searching for a reliable income-producing investment, you might want to take a good hard look at real estate.  Prices are low, mortgage rates are at historic lows and all the major indicies are positive and suggest that home prices are more than likely increasing.  And the trend is in place to reliably predict increasing rents.

According to a recent Core Logic study, depicted in the chart above there is a high correlation between changes in rents and the prior year's change in home pricing.   Increases to rents typically lag increases to home prices by a year.  The past year has been good to the home market.  According to the latest Case Schiller report, Portland home prices are 4% higher at the end of Q3 2012 than they were in Q3 2011, and have increased on a seasonally adjusted basis roughly .5% each of the past two quarters.  It would be reasonable to expect rents to climb by 4% or more by the end of 2013.

In this same November report, Core Logic exposes the increased investor activity in the rental market, which is further constricting supply, especially in the lower price tiers. Even "smart" institutional money is entering the single-family rental market.

Our expert business professionals with experience in both single family and multi-family rental properties make the Cafe a great resource for both the seasoned and first-time real estate investor.  Call or email us to set up a free consultation.

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