The Portland area has been hit hard by a recent condo shortage and may be experiencing similar trends in the Bay Area and Seattle, according to the latest data from Realtor.com.
“If you think about how much we have in the suburbs and how much people want to live here, Portland’s apartments are going to be in demand for a long time,” said Michael Shafer, Realtors’ chief economist for Portland.
“We’ve seen it in the last several months.
We’ll see it for a while longer than people think.”
According to Realtoring.com, Portland experienced the most recent shortage of 36,000 apartments in January, down from 36,600 in January of last year.
But the shortage is only one reason for a housing shortage in Portland, said Shafer.
The shortage is also due to the fact that there are so many apartments coming on the market right now, Shafer said.
“Portland has been pretty good at building new units,” he said.
In the last six months, Portland has seen nearly 1,500 new apartments added.
Shafer pointed to the trend of developers building more apartments than they can sell and said the shortage has hurt sales.
“There are a lot of people who are waiting to be built and are trying to make the most of what they have,” he explained.
“There are people who have been waiting to see how much it can sell for and there are people just waiting to find a place to live.
The demand has gone down in the area.”
Portland is the third-most-expensive rental market in the country behind Seattle and Los Angeles.
The average rent in Portland is $1,854, according Realtores.com and the median rent in the metro area is $2,527.
In addition to a shortage of new apartments, the market has also been hit by a decline in demand due to warmer weather and the recent hurricanes.
Realtornings.com reported that last week’s temperatures in the Portland area were among the lowest in the U.S. last winter.
“That was a tough winter,” Shafer explained.
“It’s the same in the South Bay and the South Coast as well,” he added.
“People are trying their best to get out of the cold and into the summer months and then they can get back into their homes.”
The shortage of apartments is also causing concern in the Northwest.
According to RealtyTrac, rents have been rising in Seattle, Portland and Tacoma.
The price increase is due in part to a lack of inventory of rental properties.
“It’s a big part of the reason we’re seeing such a strong market in those markets,” Shaver said.
The latest data show the average asking price for a two-bedroom in Portland in the January quarter was $1.18 million.
For a three-bedroom, the asking price was $2.16 million.
“Our demand for apartments is very high right now,” Shaffer said.