Portland rental property investment market rides low vacancy rate to top 5 ranking
Portland’s super low vacancy rate, combined with rising property values, soaring demand and tight inventory have made it one of the most attractive markets in the country for rental real estate investors.
Seattle’s All Property Management ranked the Rose City at No. 5 on its Q1 2015 Rental Ranking Report, which looked at 75 markets around the country. According to the report, Portland is currently the fifth-best market for rental real estate investment in the western U.S. and in the country as a whole.
The report gave Portland its ranking primarily for its low vacancy rate of 2.7 percent, the lowest out of the 75 markets evaluated in the report and around 160 percent lower than the national average. Portland’s low median age of housing inventory of 46 days and a year-over-year property value appreciation of 9 percent also helped boost the city’s rank. The combination of factors leads to an attractive environment for investors looking for solid returns on rental real estate investments, according to All Property Management.
Other rental markets currently offering high returns on rental housing include San Francisco, Denver, Raleigh, Seattle, Austin and Minneapolis. According to the Q1 report, returns on rental housing investment are currently far better in the western U.S. than in any other region: seven of the 10 highest-ranking markets are located in the West.
What this means for you
If you’ve known people in Portland who’ve been renting for the last few years, you’ve probably heard all about the rising cost of rent. This study shows that it might be for good reason, as Portland makes it to the top 5 lowest vacancy rates. Those considering buying property may want to consider renting the property out while demand remains high.