Portland Housing market
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As the largest city in the State of Oregon, Portland has a population of 647,805. This makes it the 26th most populous city in the United States. The city may just move up that list as the rate for population growth is forecast to be twice that of the national rate over the next year. A large and rapidly growing population is a positive trend for any housing market but it’s also important to note that almost half of the population in the Portland real estate market lives in rental properties as opposed to owning their own homes (48% according to NeighborhoodScout). This means that buying a rental property in Portland can make for a lucrative real estate investment.

This future population growth should aid the economy in Portland which, although strong and diverse, has had an issue with attracting qualified labor in the past. In fact, over the last year, the Portland job market only saw a growth of 0.9%. However, with the increase in population, the job market is expected to experience a growth of 42.4% over the next 10 years which is higher than the US national average growth rate of 33.5% for the same time period.

Despite the slow job growth, Portland’s economy is actually flourishing. Historically, this is the best time for the City of Portland and its economy. Currently, Portland is the 3rd largest export tonnage port on the West Coast. In general, the city is a major distribution hub. This can be attributed not only to the port but also Portland’s position near the major interstate freeway systems and the West and East Coast intercontinental railroad systems as well as its international air service. Another major industry that attracts tenants and real estate investors to the Portland housing market is the high-tech industry. Portland houses over 1,200 tech companies. Other key industries include manufacturing and healthcare.

The Portland real estate market leads the Pacific Region in affordability which is an issue in this part of the United States. This is one reason why Portland ranks as the #5 top market to watch for 2019 in this region according to the PWC real estate report. Compared to other markets in the US, Portland ranks #21 for overall real estate prospects. As most other US markets, the Portland real estate market suffers from a housing inventory shortage due to rising costs of construction and tight regulations. However, the PWC ranks the market as #16 for homebuilding prospects so forecasts show that the inventory will increase in the coming years. These are signs that Portland is one of the best places to invest in real estate.

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Portland  Real Estate Investment Performance
Facts and Market Trends in Portland
Homes For Sale
1,695
Airbnb Properties
2,282
Rental Properties
695
Traditional Vacancy rate
4.50%
Airbnb Occupancy Rate
62.15%
Mashmeter
68.98%
Median Price
$534,307
Median Rent Price
$1,862
Price/sqft
$387
Median Days on Market
70
Price to Rent Ratio
22.2
Average Cap Rate
Airbnb
2.01%
Traditional
0.80%
Average Rental Income
Airbnb
$2,976
Traditional
$2,004
 
Median Household Income
$86,771
Population
647,805
Transportation in Portland
65 / 100
Somewhat Walkable
52 / 100
Good Transit
81 / 100
Very Bikeable
Portland  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$1,767$1,806$2,210$3,018$4,292
Traditional$1,132$1,250$1,539$2,099$2,579
Portland, OR - Homes for Sale - Newly Listed
Investment Properties for Sale
$339,900
MLS 19102580
2350 NW SAVIER ST
Portland, OR 97210
Pearl District
Condo/Coop
0 beds1 baths600 sq.ft.
CAP RATE
Trad. -0.40%Airbnb 1.30%
Investment Properties for Sale
$379,950
MLS 19084216
3724 SE 42ND AVE
Portland, OR 97206
Creston-Kenilworth
Townhouse
3 beds2 baths1,328 sq.ft.
CAP RATE
Trad. 1.29%Airbnb -1.25%
Investment Properties for Sale
$435,000
MLS 19381571
10375 SW RIDGEVIEW LN
Portland, OR 97219
Marshall Park
Single Family Residential
3 beds2 baths2,510 sq.ft.
CAP RATE
Trad. 0.45%Airbnb 3.50%
Investment Properties for Sale
$329,900
MLS 19057241
303 NW UPTOWN TER 2B
Portland, OR 97210
Goose Hollow
Condo/Coop
1 beds1 baths622 sq.ft.
CAP RATE
Trad. 0.11%Airbnb 2.95%
Top Performing Portland Properties
Investment Properties for Sale
$550,000
MLS 19406963
8861 SW TERRETON PL
Portland, OR 97223
Ashcreek
Single Family Residential
4 beds3 baths2,286 sq.ft.
CAP RATE
Trad. 1.47%Airbnb 7.99%
Investment Properties for Sale
$284,947
MLS 19208176
12334 NE OREGON ST
Portland, OR 97230
Hazelwood
Single Family Residential
3 beds1 baths937 sq.ft.
CAP RATE
Trad. 1.98%Airbnb 7.95%
Investment Properties for Sale
$179,500
MLS 19633460
1005 SW PARK AVE 705
Portland, OR 97205
Downtown
Condo/Coop
1 beds1 baths433 sq.ft.
CAP RATE
Trad. 2.86%Airbnb 7.76%
Investment Properties for Sale
$589,900
MLS 19680859
7111 SW FLORENCE LN
Portland, OR 97223
Ashcreek
Single Family Residential
4 beds3 baths3,007 sq.ft.
CAP RATE
Trad. 1.59%Airbnb 7.62%
Recently Sold Homes in Portland, OR
Investment Properties for Sale
$433,481
MLS
11806 SEAERIE CRESCENT RD
Portland, OR 97086
Lents
Single Family Residential
4 beds3 baths3,211 sq.ft.
CAP RATE
Trad. 2.53%Airbnb N/A
Investment Properties for Sale
$268,276
MLS
1140 SE 139th Ave
Portland, OR 97233
Hazelwood
Other
3 beds1 baths960 sq.ft.
CAP RATE
Trad. 2.07%Airbnb 8.41%
Investment Properties for Sale
$335,000
MLS 19170312
5114 N VANDERBILT ST
Portland, OR 97203
Portsmouth
Single Family Residential
4 beds2 baths1,889 sq.ft.
CAP RATE
Trad. 3.33%Airbnb N/A
Investment Properties for Sale
$365,000
MLS 19457487
12820 SW EDGEWOOD ST
Portland, OR 97225
Northwest Heights
Single Family Residential
3 beds1 baths874 sq.ft.
CAP RATE
Trad. 4.38%Airbnb 5.92%
Property Value Changes and Real Estate Appreciation in the Portland Housing Market

Portland also leads the nation when it comes to historic real estate appreciation. Since Q1 of 2000, Portland properties have appreciated a total of 158.51% for an average annual rate of 5.05%. Owning a Portland investment property would allow a real estate investor to enjoy significant appreciation as these historic trends continue into 2019 and beyond.

One more reason to invest in Portland real estate is that the market is currently a very cool buyer’s market. In combination with the relative affordability, the high appreciation, the increasing inventory, and the high demand for rental property, a Portland investment property makes for one of the most profitable investments.

Portland, OR Top Multi Family Homes
Investment Properties for Sale
$229,000
MLS 19124472
6605 N POWERS ST
Portland, OR 97203
Portsmouth
Multi Family
0 beds0 baths792 sq.ft.
CAP RATE
Trad. 3.05%Airbnb N/A
Investment Properties for Sale
$399,900
MLS 19263674
12607 SW 64TH AVE
Portland, OR 97219
Far Southwest
Multi Family
0 beds0 baths2,300 sq.ft.
CAP RATE
Trad. 2.83%Airbnb N/A
Investment Properties for Sale
$475,000
MLS 19690897
4815 N MICHIGAN AVE
Portland, OR 97217
Humboldt
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 1.86%Airbnb N/A
Investment Properties for Sale
$679,000
MLS 19527908
5239 NE 37TH AVE
Portland, OR 97211
Concordia
Multi Family
0 beds0 baths2,480 sq.ft.
CAP RATE
Trad. 1.75%Airbnb N/A
Homes Below Median Price in the Portland, OR Real Estate Market
Investment Properties for Sale
$550,000
MLS 19406963
8861 SW TERRETON PL
Portland, OR 97223
Ashcreek
Single Family Residential
4 beds3 baths2,286 sq.ft.
CAP RATE
Trad. 1.47%Airbnb 7.99%
Investment Properties for Sale
$284,947
MLS 19208176
12334 NE OREGON ST
Portland, OR 97230
Hazelwood
Single Family Residential
3 beds1 baths937 sq.ft.
CAP RATE
Trad. 1.98%Airbnb 7.95%
Investment Properties for Sale
$179,500
MLS 19633460
1005 SW PARK AVE 705
Portland, OR 97205
Downtown
Condo/Coop
1 beds1 baths433 sq.ft.
CAP RATE
Trad. 2.86%Airbnb 7.76%
Investment Properties for Sale
$589,900
MLS 19680859
7111 SW FLORENCE LN
Portland, OR 97223
Ashcreek
Single Family Residential
4 beds3 baths3,007 sq.ft.
CAP RATE
Trad. 1.59%Airbnb 7.62%
Portland Airbnb Growth and Regulations

Airbnb growth in the Portland real estate market was quickly evident as there were thousands of short-term rental listings across different vacation rental websites. So the city began regulating such rental properties in an attempt to protect residential  neighborhoods in Portland. Since 2014, all Airbnb investment properties that are non-owner occupied have been outlawed. The rental property must be your primary residence and you must live there for 9 months out of the year. If you wish to rent out on Airbnb while you’re away, there is a cap of 95 days. Guest stays are limited to 30 days at a time for up to 2 bedrooms in the rental property.

Besides this, Airbnb Portland hosts must obtain a permit from the local officials which will have to be renewed every 2 years. The initial fee for the permit is $178.08 and $62 upon renewal. The cost differs for multi-family homes which qualify for short-term rental permits. The initial fee is $100 and $62 upon renewal.

Short-term rental taxes are also a part of the Airbnb regulations in Portland (6%) as well as a county tax (5.5%). However, the short-term rental platform is responsible for collecting these taxes and remitting them to the city. 

Finally, while Airbnb hosts in Portland don’t need the permission of the other property owners in the neighborhood, they must send out a Neighborhood Notice as a courtesy.

Portland, OR Top Airbnb Homes
Portland Airbnb
$82 per night
Entire home/apt · 3 beds
Funky Pad Suite - Parkside Portland
1010
Portland Airbnb
$80 per night
Entire home/apt · 1 bed
Peaceful Retreat in Thriving NE
751
Portland Airbnb
$98 per night
Entire home/apt · 2 beds
Ladd's Addition near SE Hawthorne
663
Portland Airbnb
$73 per night
Entire home/apt · 1 bed
Sleek Basement Space, Close-In Hood
629
Portland, OR Homes for Rent
Investment Properties for Sale
$1,750
Investment Properties for Sale
$1,010
Investment Properties for Sale
$2,100
Investment Properties for Sale
$1,100
Portland, OR Open Houses
Investment Properties for Sale
Open 11 AM to 1 PM
$215,000
MLS 19129911
1205 SW CARDINELL DR 306
Portland, OR 97201
Goose Hollow
Condo/Coop
0 beds1 baths607 sq.ft.
CAP RATE
Trad. 0.18%Airbnb 0.19%
Investment Properties for Sale
Open 12 PM to 2 PM
$674,900
MLS 19677131
4407 NE 6TH AVE
Portland, OR 97211
King
Single Family Residential
3 beds3 baths2,157 sq.ft.
CAP RATE
Trad. 1.63%Airbnb 2.95%
Investment Properties for Sale
Open 1 PM to 3 PM
$330,000
MLS 19284791
18227 SE MILL ST
Portland, OR 97233
Centennial
Single Family Residential
3 beds2 baths1,392 sq.ft.
CAP RATE
Trad. 1.04%Airbnb 1.61%
Investment Properties for Sale
Open 12 PM to 3 PM
$680,000
MLS 19183504
2805 SE 36TH AVE
Portland, OR 97202
Richmond
Single Family Residential
3 beds2 baths2,567 sq.ft.
CAP RATE
Trad. 0.58%Airbnb 0.67%
Best Portland Neighborhoods for Buying Investment Property
89%
Mashmeter
property price
$690,000
Median
cap rate
3.80%
Traditional
4.34%
Airbnb
rental income
$2,184
Traditional
$2,496
Airbnb
homes for sale
16
occupancy rate
69%
Airbnb
83%
Mashmeter
property price
$450,000
Median
cap rate
7.24%
Traditional
9.03%
Airbnb
rental income
$2,715
Traditional
$3,386
Airbnb
homes for sale
101
occupancy rate
71%
Airbnb
87%
Mashmeter
property price
$449,900
Median
cap rate
5.90%
Traditional
8.64%
Airbnb
rental income
$2,213
Traditional
$3,239
Airbnb
homes for sale
17
occupancy rate
72%
Airbnb
69%
Mashmeter
property price
$251,950
Median
cap rate
10.63%
Traditional
13.73%
Airbnb
rental income
$2,231
Traditional
$2,883
Airbnb
homes for sale
2
occupancy rate
70%
Airbnb
69%
Mashmeter
property price
$637,450
Median
cap rate
3.62%
Traditional
4.62%
Airbnb
rental income
$1,923
Traditional
$2,454
Airbnb
homes for sale
10
occupancy rate
68%
Airbnb
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