Rents are up, household incomes go down

Portland's rents rose at nation's sixth-fastest rate, study finds

The Oregonian, March 16, 2015  By Mike Francis

The Hassalo on Eighth project will add 657 apartments to Northeast Portland's Lloyd District. The Portland area's rents rose seventh-fastest in the nation, the realtors' study found. (Elliot Njus / The Oregonian)

Rents in the Portland metropolitan area rose 20.45 percent over the last five years, giving the area the sixth-fastest rise in the nation, according to a new study from the National Association of Realtors.

The association has sounded the alarm before about the increasing unaffordability of rents in many metro areas. Lawrence Yun, the association's chief economist, said Monday that the disparity between rent and income growth has become unhealthy, making it harder for renters to become homeowners.

"With rents taking up a larger chunk of household incomes," said Yun, "it's difficult for first-time buyers - especially in high-cost areas - to save for an adequate down payment."

Portland's low vacancy rates have helped fuel an apartment building boom. But many of the new units are entering the market at with rents above the median. A study by Zillow last month found that Portland-area rents rose 7 percent year over year, the seventh fastest rent rise in the country. The area's median rent was $1,587, Zillow said.

Portland's low vacancy rates have helped fuel an apartment building boom. But many of the new units are entering the market at with rents above the median. A study by Zillow last month found that Portland-area rents rose 7 percent year over year, the seventh fastest rent rise in the country. The area's median rent was $1,587, Zillow said.

Units at the recently opened Grant Park Village apartments range from $1,194 for a studio to $2,619 for a three-bedroom unit, according to the project's website. At Hassalo on Eighth, studios will start at $1,008 and three-bedroom units will range up to $3,338. At Tupelo Alley on North Mississippi, listed rents range from $1,100 to $2,590.

Chart from the National Association of Realtors, Economists' Outlook has information on income and rent for metropolitan areas across the country.

     Rent Increases over the last 5 years (percent)

1. New York City                                   50.07
2. Seattle-Bellevue                                32.38
3. San-Jose-Sunnyvale-Santa Clara    25.60
4. Denver                                               24.14
5. St. Louis                                            22.26
6. Portland                                             20.45