According to Zillow, Portland's median home value increased by 12.2% year-over-year in November 2018, the largest increase of any large city in the country. This is an acceleration from the 10.1% growth in median home values reported in October 2018, which was the second highest rate of large cities in the US.
The Portland housing market has become one of the hottest markets in the nation due to increasing demand for housing and tight inventory. Home prices rose an average of 3.9% nationwide during 2018, however, most of that growth was concentrated in the West Coast and Southwest markets, with Portland seeing the strongest growth nationwide.
The lack of housing inventory is also driving up home prices in Portland. In November 2018, there were only 2.0 months of supply of homes on the market, and this is the lowest level since December 2015. As a result, homebuyers are competing for a limited number of available homes, causing home prices to rise.
In addition to the tight inventory, Portland is also benefitting from strong job growth. The unemployment rate in the city is currently 3.5%, which is below the national average of 4.1%. This robust job growth has attracted more people to the area, thus increasing demand for housing. The new influx of residents also creates a richer, more diverse population, which adds to the city's quality of life and attractiveness as a place to live.
Finally, the region's affordability is helping the strong real estate market. Portland is one of the most affordable major West Coast cities, and still has more affordable housing options than Seattle, San Francisco, and Los Angeles. As a result, Portland draws both first-time buyers and those looking to move from these higher-priced cities in search of better value.
Overall, there are several factors that are causing the Portland housing market to experience rapid growth. The limited housing inventory and strong job growth are driving up home prices as more people flock to the city looking for an affordable and desirable place to live. In addition, the city's overall affordability makes it an attractive option for those looking for a more reasonable alternative to the other West Coast cities. As long as these factors remain in place, it is likely that Portland will continue to enjoy the fast-paced increase in home values.
This article was contributed on Sep 21, 2023
