Only this time, investor sharks are in the real estate pool along with hopeful homeowners. Guess which one gets eaten alive.
Anti-California stickers found on Portland real estate signs
KGW Wayne Haverlly
Portland's tight real estate market is leading to some resentment, especially in North Portland where it's tough to buy a house without a bidding war.
It seems people moving here from California are getting the blame.
Real estate signs in North Portland are not welcoming to Californians. Realtor Quinn Irvine's signa have been slapped with the anti-California stickers in the popular Arbor Lodge neighborhood.
"It really shows what's going on in the neighborhood, lots of anti-development and anti-California feelings because prices are rising so quickly," said Irvine.
A recent KGW News investigation showed that 25-30 percent of the people who move to Oregon each year are coming from California, where real estate values and salaries are much higher. That trend has been in place about five years and it shows no signs of slowing down.
"Unfortunately Portland's retired hipsters are going to have to get jobs if they want to live in North Portland," said Realtor Mark Charlesworth,
70 to 80 percent of Portland home buyers are not from California. In fact, the man who just bought Quinn Irvine's listing was an investor from New York.
The reality of the unaffordable Portland housing market: "Retired hipsters" may have jobs, but with an average income, they cannot afford most starter homes in Portland, even without a bidding war.
For a home priced at $340,000, with 20% down, a mortgage of $272,000 will have monthly payments of $1,378.00. Adding taxes and insurance to the mortgage payments would top the classic rule of not exceeding 1/3 of gross take-home pay for mortgage, property tax and insurance payments. With an average Portland income of $52,657, (not factoring in SS, FICA and other deductions) the total monthly bill for housing expenses should be $1,450 or less. This leaves $72 per month to cover the tax and mortgage costs (about $864 per year).
US Census Quick Facts. Portland. Oregon
Increase in population 2010 a 2014. 6.1%. 3.6%
Homeownership rate. 53.4%. 62%
Multifamily share of home units. 38.1%. 23.2%
Median income per capita. $31,839. $26,809
Median income per household. $52,657. $50,2 29
Median home value. $284,900. $238,000
Persons per square mile. 4,375. 40