Real Estate Investment in Oregon

Why Invest in Oregon Real Estate?

Oregon is a prime destination for real estate investors in single-family homes. The vibrant cities like Portland, Salem, Eugene, and Gresham, as well as mighty volcano mountains, picturesque coastline, golden deserts, crystal-clear lakes, top-notch wines, craft beers, tasty food scene, and endless year-round leisure ops, determines thousands of single-family home buyers and potential renters to pour into the state every year. The population of Oregon has experienced a 0.89% growth rate over the past years, which is higher than the national average of about 0.7%.

Oregon's economy is stable and varied; the coastal state is home to the Silicon Forest thus high technology is one of the fastest growing industries in the area. Advanced manufacturing, business services, forestry & wood products (Oregon is the country's largest wood products producer), food & beverages, outdoor gear & apparel, and green technology are other key industries in Oregon.

The steady job growth, population increase, and other characteristics like high-quality healthcare, great educational opportunities, and numerous leisure ops, make Oregon a smart call for real estate investors.

Investment Considerations for Oregon Real Estate

Investors should consider the following factors when looking to invest in the Montana real estate market:

  • Growing rental demand - The state is home to renowned companies like Nike, Inc., Precision Castparts Corp., Columbia Sportswear, FLIR Systems and StanCorp Financial Group. Also, Oregon hosts famous universities and colleges such as University of Oregon, Oregon State University, Portland Community College, and Western Oregon University. This attracts lots of recent graduates and professionals. With so many employment and education opportunities and the great population growth, the rental demand and housing market experience a consistent growth. Real estate investors in Oregon are able to find a bunch of employed renters who could afford to pay their rent on time.
  • Job Growth - Industries such as high tech, clean tech, business, advanced manufacturing, food & beverages, outdoor gear & apparel, and forest & wood products have their organizations headquartered in Oregon. From January 2017 to January 2018, the state had the fifth fastest job growth rate of 2.7%, which is higher than the national average of 1.6%. The percentage is even higher than states like California, with a 2.4% job growth rate. This continuous growth, together with low and dropping unemployment rates (4.1%) attracts renters and buyers to the area. Therefore, real estate investors can enjoy a regular cash flow likelihood.
  • Rental Vacancy Rate - Oregon's rental vacancy rate has gone from 6.39% in 2005 to 3.17% in 2016, which is lower than the national average rate of about 6%. Plus, the median gross rate in the state is $1,015, higher than the national $981 average. Rent prices have gone up in Oregon by 13.79% over the past years, compared to only 7.80% national average. This translates into an increasing number of tenants looking for renting out a place and prices growing rapidly. With the rent prices continuously and fastly increasing, and the occupancy rates, real estate investors in Oregon will quickly find renters for their single-family homes. In addition, the growing rent prices will bring a nice, increasing profit.
  • Fair entry prices of homes - Enjoying a high rate population growth (0.89%), Oregon is a top relocation spot, with 4.143 million residents and welcoming 64,750 people in 2016 alone. In 2016, there was an average of 19,000 new residential building permits released. While the rents go continuously higher, the entry prices of homes stay relatively affordable. For example, new houses sell for an average of $232,900 in Salem (prices can go as low as $165,000), $270,200 in Eugene (prices can go as low as $89,000), and $417,900 in Portland (prices can go as low as $239,990). Therefore, real estate investors can purchase affordable-priced houses and enjoy the rent prices growth.

What are the Best Markets to Invest in Oregon

Rental units throughout Oregon experience a growing demand. Exhibiting affordable property prices and good CoC return & cap rate percentages, Waldport is one of the top markets for investing in single-family homes. The median property price in Waldport is $193,000, the rental income is $1,530, the CoC return is 4.8%, and the cap rate is 8.5%. Since homes' prices are constantly increasing as well, this can be the perfect moment to invest in Oregon's coastal towns such as Newport, Lincoln City, and Astoria.

Oregon is a rapidly-growing and developing state that offers a plethora of excellent opportunities for real estate investors. Job growth, state-of-the-art healthcare, good education and leisure options make Oregon a nice market for real estate investing.

 

HomeUnion® Investment MapHomeUnion® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Oregon; and across the United States and calculate home values INVESTimate® for every property in Oregon. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.

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