Portland Still Dealing with Rising Rent Prices

No one yet know when the rent prices will level off. People who love Portland are wondering will they be able to continue to live in the city or somewhere else in Oregon. Oregon’s annual cap on monthly rent will increase to 14.9% in 2023. In 2022, the rent cap was 9.9%. In a recent national report the analysis revealed that renters saw a $160 increase in rent per month on average when renewing leases this year in addition to a $360 increase per month on new leases.

A Portlander currently lives in a studio apartment that is about 340 square feet can expect to pay approximately $1,300; and that’s not including utilities. People are constantly moving out, according locals in various apartment housings. Their reasoning is always due to the hike in prices. Even if a renter was able to endure the first increase, their income couldn’t necessarily handle another one.

Median rent prices hit and all-time-high in July. The prices are rising in downtown as well as the suburbs. Reasons are the combination effects of the COVID-19 pandemic and inflation. Experts say these two causes have contributed to large gains in U.S. rent prices. However, recent survey results suggest the market may be cooling as landlords adjust renter budgets for inflation, which currently stands at 8.5 percent. 

A new report from Realtor.com found that although still cheaper than urban areas, suburban rents are higher now than they were prior to COVID-19. According to the company’s July Rental Report, renting in suburbs is less affordable compared with renting in the city now than it was before COVID-19.

Some signs may be positive, however. Landlords adjusting prices for inflation may signal a future market cool down. The suburbs is looking better to more people now. The COVID-19 pandemic saw a resurgence in the popularity of suburban living. But a new report from Realtor.com shows the decision to exit city living for a less crowded life is not as cheap as it once was. 

Compared with three years ago, the rental price advantage of suburban living vs urban living decreased by nearly 53 percent, or $68 per month, the report found. July of 2022 also saw the highest U.S. median rental-price of all time at $1,879 per month and national rents remain at historic highs, regardless of urban or suburban areas.