Strong demand for single-family rentals (SFR) will also push rents up 3.5 percent in 2017.
IRVINE, Calif., March 14, 2017 – HomeUnion, an online real estate investment management firm, has announced that Portland is projected to have a stellar year from an economic growth perspective, with an extremely hot residential real estate market. While the venture capital funding tap has slowed on fellow West Coast markets like San Francisco and San Jose, Portland has seen a recent influx of VC funding. Employment growth and rising home prices have led to strong renter demand, which will further serve to push rents upward.
“While higher entry prices have meant that cap rates in Portland are on the lower side, investors can reap a lot of value through appreciation,” says Steve Hovland, director of research at HomeUnion. “The strong employment market will continue to support renter demand. With rising prices, most potential first-time buyers are relegated to the rental pool. Nonetheless, we expect a slight increase in vacancy this year, due to an influx of new inventory coming online.
Here are some key takeaways on Portland’s investment housing market:
- The metro’s year-over-year employment growth is projected at 2.5 percent this year, compared to 1.7 percent growth nationally.
- Single-family rental (SFR) vacancy in Portland is expected to grow by 60 basis points to 5.5 percent.
- Rents for Portland SFRs are anticipated to grow to $1,902 per month, up 3.2 percent from 2016.
- Prices for investment homes in Portland ended 3Q 2016 at $300,000, with nearly 80 percent of investors choosing to use leverage.
For more information on the state of the U.S. investment housing sector and market conditions in 29 metros nationwide, download the 2017 National Single-Family Rental Research Report.
HomeUnion is an online real estate investment management firm. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in single-family rental (SFR) properties. The company uses a combination of research and proprietary analytics to incorporate data on over 110 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves 11 locations. HomeUnion’s role spans the lifecycle of the investment transaction: identifying sound investments, handling all aspects of acquisition, maximizing income, protecting asset value, and selling the asset when the time comes.
Communications Manager, HomeUnion