Portland Investment Property for Sale - 2024 Rental Home Appreciation

The Portland real estate market is hot, and it has been for several years. High demand for homes and very low inventory have created fierce competition driving home values up and keeping leasing and real estate agents busy.

Inventory is so low in the Portland area that there was only half a month of homes for sale reported in March 2022. Competition for the few available Portland homes is so fierce that most homes sell in just 35 days.

Real estate investors looking to enter the Portland rental market should act quickly while home prices remain relatively affordable.

Portland's Attractive Housing Market

The Portland area is home to many great suburbs for investors to consider. They include Beaverton, Hillsboro, Lake Oswego, Milwaukie, and Vancouver.

• Beaverton: Beaverton is located 7 miles west of Portland along US-26. It’s the second largest city in Washington County and the headquarters of Nike. The median listing price in Beaverton is $313/sqft, and the median sales price is $565,000. The median rent is $1,700/month.
• Hillsboro: Hillsboro is located 21 miles west of Portland along US-26. In 2021, Livability ranked it number 7 in their list of best places to live. It’s also home to Intel and other large tech companies. The median listing price in Hillsboro is $325/sqft, and the median sales price is $543,500. The median rent is $1,900/month.
• Lake Oswego: Lake Oswego is located 7 miles south of Portland along OR-43. It’s a safe, suburban community known for its natural beauty and outdoor recreation. The median listing price in Lake Oswego is $394/sqft, and the median sales price is $877,500. The median rent is $2,100/month.
• Milwaukie: Milwaukie, not to be confused with Milwaukee, WI, is 6 miles south of Oregon along OR-99 just north of Lake Oswego. It’s known as a family-friendly community with great shopping and taprooms. The median listing price in Milwaukie is $313/sqft, and the median sales price is $520,000. The median rent is $1,500/month.
• Vancouver: Vancouver, WA, is 9 miles north of Portland along I-5, just across the Columbia River. It’s the gateway to Washington State and a family-friendly community. The median listing price in Vancouver is $288/sqft, and the median sales price is $495,000. The median rent is $2,200/month.

Rental Home Appreciation in Portland

Portland, OR, has a robust rental market that creates a high demand for rental properties. Nearly half (49%) of households in Portland are occupied by renters, and the city has a vacancy rate of around 4%.

According to Realtor, the median listing price in Portland is $338 per square foot with a median sale price of $550,000. Zillow’s Home Value Index reports a 13.7% change in property values since last year. The median rent in Portland is $2,150 per month. Experts project real estate investors can expect a cap rate of 6% in the Portland area.

Portland offers real estate investors a solid rental market, relative affordability, and steady home price appreciation. These factors combine to make a great potential opportunity for property owners, real estate investors, and property management companies to increase cash flow through rental income.

Economic Growth in Portland

Portland is the largest city in Oregon by far. It’s nearly four times the size of Salem, Oregon’s capital and second-largest city. Portland is the sixth most populous metropolitan area on the West Coast, just behind San Francisco and Seattle.

Portland, Oregon’s primary industry is specialized manufacturing high-tech electronics and specialty metal fabrication. Athletic apparel, healthcare, and wholesale trade are major industries in the Portland area. The Portland area’s largest employers are Intel, Providence Health and Services, Oregon Health and Science University, and Nike. These employers provide well-paying jobs and fuel the city’s economy.

The competitive Portland real estate market offers homeowners and real estate investors demand for home price appreciation and a stable economy. They combine to create a tremendous investment opportunity.