Rent increases in the Beaverton Area (Portland, Salem: real estate market, 2015, rentals)

[raja302]

Hello
I am looking to move back to the Beaverton area after living in Pittsburgh. I've had enough of these freezing winters and want to return to the city I grew up in. I'm leery about the rental increases though. When I last rented a place in central Beaverton, in 2015, they raised the rent by $100.00 in an eight month period. I'm not sure if the rental increases have eased or gotten more expensive. My brother and mother will be moving with me and we'll probably take home around $3200.00 a month after taxes with our combined income. Would this be enough to rent a 2 bedroom in Beaverton? Or will the rent increases make this move a nonstarter?

[oregonwoodsmoke]

You aren't the only family wanting to move into the greater Portland area. Lots of people moving in, construction is not coming anywhere near keeping up, and there is a shortage of vacancies.. that makes rent go up.

Rule of thumb, many landlords want income to be 3 times the rent. You've got $3200, so probably can qualify for slightly under $1100 rent. I think you might have problems finding a rental big enough for 3 adults in that price range. Even if you find one, rents are still going up, so you might not be able to afford it for long.

[pnwguy2]

What you are seeing is a result of a good residential real estate market. When the local residential market is up, so are rentals. Property taxes (in general) go up when housing prices go up, but I'm not certain about Oregon restrictions on this. In general, when property taxes go up the landlords simply pass that cost to renters. It is pretty simple economics.

I live to the north in Washington, and rentals have a direct increase correlation to property values. If you want cheap rents you will likely need to locate in a real estate market that has less property appreciation.

[Silverfall]

I agree that you will want to keep your rents around $1100 a month and that is difficult for a two-bedroom in Beaverton. There is a lot happening in the Portland metro area with mandatory moving fees and such as rent prices are skyrocketing there.

I own rentals in Salem and I can tell you that rents here are increasing rapidly as well. The real estate market here is escalating very quickly.

[rbwpi]

[quote=oregonwoodsmoke;51247144]Rule of thumb, many landlords want income to be 3 times the rent. /QUOTE]

I believe the rule of thumb is 3 times gross income, not take home pay.