Why is rent skyrocketing? (Portland: real estate, apartment complexes, renters)

[Sprightly]

So my title says it all - why is rent skyrocketing over the last two years on the west side of Portland? Can't speak to the east. It is rising so quickly that there is no way that people's salaries in general could keep up, so what happens - do ordinary people just get driven farther and farther out? Does it become next to impossible for an adult with an ordinary job to rent in a decent area without roommates? I never thought I'd get priced out of where I'm living now - hell I moved here to save money originally.

[Homelessadvocate]

Originally Posted by Sprightly

So my title says it all - why is rent skyrocketing over the last two years on the west side of Portland? Can't speak to the east. It is rising so quickly that there is no way that people's salaries in general could keep up, so what happens - do ordinary people just get driven farther and farther out? Does it become next to impossible for an adult with an ordinary job to rent in a decent area without roommates? I never thought I'd get priced out of where I'm living now - hell I moved here to save money originally.

Looks like I won't be the ONLY one camping in forest park huh? Give it time! Could happen to ANYONE!! Turbo-tastic!

[Sprightly]

Seriously, given the dramatic increase in rents that I bet many people are being badly affected. My rent has increased by 33% in the last year. Are you sure that you want to move to a place with such a dramatically increasing cost of living - even if there is an excellent forest to dwell in?

[Hopes]

I do have empathy for the increased cost of living. I fear that will happen in my city now that it is receiving so much national attention. I preferred when everyone thought it was a smog infested dreary city with a collapsed economy. But what amazed me was how low your utility bills must be. I noticed that there isn't airconditioning in the Pacific northwest. I also noticed that there are tiny little space heater wall units. Hubby and I discovered this after we tore apart hotel rooms looking for the airconditioning and heat sources. We pay almost $500/month for heat in the coldest months in the winter, and we need airconditioning in the summer too. I initially thought the region was too expensive for retirement, but I'm rethinking that now because low utilities would be desirable on a fixed income.

[SETabor]

With a reported 2.5% vacancy rate, landlords can charge what the market will bear. With the 2008 bust, new housing inventory wasn't added to the city for a few years yet people kept coming. If you live in a popular area, expect rates to climb faster than living in a less popular area - I'm sure if you lived in Cully, you'd be paying less.

[Larry Caldwell]

Statewide, rent inflation has been running about 10%. That means you can expect your rent to double in about 8 years. This is because most people are stupid and don't understand simple arithmetic. They lost their shirts in the real estate bubble, so decided home ownership was a bad idea,when they could have bought in a deflated market and locked in a 4% mortgage for the next 30 years. People also are too lazy to develop their own house maintenance skills. If you have to call a $50/hr plumber every time a drain plugs up or you have to replace a water heater, it can look attractive to just call the landlord. If you are going to live like a sheep, expect to get fleeced.

[Discovery1]

Originally Posted by Larry Caldwell

Statewide, rent inflation has been running about 10%. That means you can expect your rent to double in about 8 years. This is because most people are stupid and don't understand simple arithmetic. They lost their shirts in the real estate bubble, so decided home ownership was a bad idea,when they could have bought in a deflated market and locked in a 4% mortgage for the next 30 years. People also are too lazy to develop their own house maintenance skills. If you have to call a $50/hr plumber every time a drain plugs up or you have to replace a water heater, it can look attractive to just call the landlord. If you are going to live like a sheep, expect to get fleeced.

The real problem are Urban boundaries , zoning, go green, go hungry all equal less housing to support growing population leading to higher home prices = higher rent.
All of these craps will hurt consumers, next comes retailers which will all slow the local economy. That is how you see small businesses and bigger ones are having tough time in Portland and there you will retain higher unemploment leading to lower wages.

You should blame the people you voted for.

[turquoise1]

Also, don't forget lack of rent control and tenant protection laws.

[NWGirl74]

Originally Posted by SETabor

With a reported 2.5% vacancy rate, landlords can charge what the market will bear. With the 2008 bust, new housing inventory wasn't added to the city for a few years yet people kept coming.

Yep. Simple supply and demand. When demand is greater than supply, prices go up. Also, usually apartment complexes will offer incentives to new renters to fill vacancies and then charge market rate when that promotion period ends.

[PDXJ]

Portland is an attractive place to live. Rents are catching up to that notion.

Some of the other factors listed above affect rents too, but bottom line, if people find a place more desirable, they are going to be willing to pay more to live there.