The western coastal state of Oregon is known for many things, including its fascinating “wild west” history.
Over the past few years, the population in the state has increased by 0.89%, which is actually higher than the national average at 0.7%.
Perhaps, the growth is not only because of the newborns. A majority of the growth rate share owes it to migration into the state.
For example, the state is home to the Silicon Forest, therefore tech ventures are a growing industry. The economy is stable and offers some of the best business locations.
Not to mention, the vibrant cities like Portland, Salem, and Gresham are also great attractions for migrants.
It is also noteworthy that the state has one of the highest-rated potentials for real estate investors. Particularly, single-family homes and rentals witness the highest growth.
On top of all this, the job market is also quite stable, along with high-quality healthcare, and a great education.
Indeed, these all reasons are sufficient to get your attention to invest in real estate in the state. And since, you’re here, you probably are already interested in investing in real estate in the state of Oregon.
So, what are the factors that you should consider before investing in real estate in Oregon?
Of course, you need to choose a city and then an area within it to finalize your investment. But, before you even reach there, you essentially need a birdseye view of the market in the state.
Don’t worry. We’ve got your back.
Here are some of the recent market trends that can help you come to a conclusion. And, maybe, help you finalize where you ultimately invest your real estate capital.
So, without any further ado, let’s begin.
To your surprise, the state is actually home to several global brands including Nike and Inc.
Besides, some of the renowned universities including the University of Oregon and Oregon State University also add to the attraction quotient for migrants.
A lot of young graduates and professionals flux into the state in search of a better career. And as already mentioned the state has some of the best employment opportunities in the country.
It is needless to say that all these migrants need a place to stay. But, most of these migrants would not be willing to purchase a property right away.
Renting out a space when moving to a new city makes more sense. And, it is indeed a trend that millennials and Gen-Z have been radiating over the past several years.
In short, the demand for rental properties is increasing. And it makes sense to invest in rental properties if not buy a single-family home for yourself.
As mentioned already, the population growth in the state exceeds the national average, which puts Oregon in the top relocation spots in the country.
According to a report, 64,750 people migrated to Oregon in 2016, and around 19,000 new residential building permits were released.
Despite the rents increasing continuously year over year, entry prices for home buyers are still relatively budgeted.
For example, the average price for a new single-family residence in Salem is $232,000. Similarly, $417,900 is the average selling price in Portland. Compared to the neighboring states of Washington and California, the prices are quite low.
Moreover, the FA or VHA is also quite easier to obtain in Oregon. For example, mortgage lenders in Portland Oregon charge around 3% for a 30-year lease term. In contrast, mortgage rates in CA and WA are much higher for the same term.
In short, the market is pretty friendly for economy class buyers, looking for rental income.
Several industries, including some of the global brands, have their organizations headquartered in Oregon.
According to a national survey, the state was ranked 5th in the country for the fastest job growth rate at 2.7%, between 2017 and 2018.
If it helps, the national job growth rate is 1.6%.
Surprisingly, the growth rate is higher than most of the higher-paying states, including California and Washington. For instance, the job growth rate for the same year in California was recorded at 2.4% only.
Besides, the unemployment rate in the state was also recorded dropping during the same year (before the pandemic hit us all.)
An attractive job growth rate combined with a low unemployment rate is only a better proposal for renters and migrants.
Before the pandemic hit us all, and people started moving back to the countryside, Oregon’s rental vacancy rate was almost half the national average.
In 2016, the rental vacancy rate in Oregon was recorded at 3.7%, whereas the national average stood at 6%.
Even post covid, the employment is growing and there are fewer job losses. In short, the evacs were not recorded as high as in other states like California and Washington.
It would be safe to say real estate investors in Oregon will find it easy to rent out their properties. Although the rentals may not exactly be higher, they would still be promising enough to guarantee a good return on investment.
Since Covid, the rental market throughout Oregon has stayed the same. However, some counties/cities have experienced more growth than others.
For instance, Waldport, Portland, and Salem are still growing markets. The cities are close to industries and have plenty of affordable amenities.
Coastal towns like Newport, Lincoln City, and Astoria are great for single-family residencies, if not for rental properties. So, if you’re planning to move to Oregon, these towns might be the best choice for you.
Overall, Oregon’s real estate is a rapidly-growing market with promising returns for both investors and home buyers. There are plenty of growth opportunities both professionally and academically. And not to forget the state is also popular for its “wild west” feel.
Having said that, we recommend you consult with a real estate agent or a realtor who can help you study the local markets. And accordingly, you can decide which county/city and neighborhood within, is the best fit for you.