Insights on the Portland Real Estate Market in 2022

Real Estate in Portland’s Suburbs is Increasing in Demand

No question – Portland, Oregon has a hot housing market in 2022. It’s a seller’s market for sure, but Portland’s real estate market isn’t overly competitive, making it one of the best places to invest in real estate. Data from Redfin shows that only some Portland properties receive multiple offers.

On average, Portland homes typically sell after 25 days on the market. The trend for median days on market in Portland has decreased over the past year. In 2021, homes stayed on the market for 37 days, according to data from the Portland Metro Association of Realtors. But compared to other markets, where days on market averages hover in the teens, Portland moves at a more reasonable pace.

Available home inventory in Portland has also decreased YOY. In 2021, there was enough inventory to last for 0.8 months. In March 2022, that number had fallen to 0.7 months’ worth of inventory.

Of course, as inventory shrinks, median home prices increase. The median list price of homes in the Portland metro is $550,000 – up from $477,000 in 2021. That marks a 15% increase YOY.

Comparatively, Portland’s median home value is $585,003. During Q3 and Q4 2021, Portland’s home price appreciation increased less than 1%. From Q4 2020 to Q4 2021, the city’s home price appreciated by 12.3%, according to the Portland Metro Association of Realtors.

What’s interesting about Portland’s real estate market is the percentage of investors who are snatching up available inventory. During Q4 2021, investors purchased 13% of the homes sold in Portland – a 46% increase from 2020.

Those numbers were significantly higher across the Columbia River in Clark County, Washington, where investors snapped up 67% of homes in Ridgefield, Washington and 68% of homes in Salmon Creek, Washington.

Both of these fast-growing communities are 20 miles north of Portland. Those looking at purchasing an investment property in Oregon should take note, as the Portland area is poised for growth.

Portland’s Suburbs Aren’t Cheap

The numbers show that Portland is a hot spot for investors looking to purchase investment property in Oregon. However, it’s worth noting that Portland’s suburbs aren’t exactly affordable.

Promises of larger spaces and more affordable prices led to a bit of an exodus during the pandemic as people traded in urban settings for suburban living. With increased demand in the suburbs and limited inventory, average housing prices increased more than 20% in some Portland suburbs.

April statistics from Redfin show Portland’s median home price was $565,000. Nearly all of Portland’s suburbs blow past that number. Median home prices in Tigard, Wilsonville, Happy Valley, and Oregon City are all more expensive than in Portland proper.

Portland home prices increased 6.6% from 2021 to 2022. Comparatively, Wilsonville home prices increased 29%, Tigard home prices increased 31%, and Oregon City home prices increased 16%.

What’s Ahead for Portland in 2022?

Portland has a lot to offer investors. It remains one of the most affordable major West Coast rental markets and boasts a highly active multifamily construction market, and experts expect that growth to continue.

Portland is ranked 26th out of 98 metros in development activity, largely because of the multifamily construction activity in Portland. Multifamily construction permits are up 15% from 2021. An estimated 6,955 units should be completed by February 2023.

Investors looking for new construction and multifamily investment opportunities should consider investing in rental properties in Portland.

Based on Portland’s appreciation data, investors can find a prime opportunity for real estate investments in Oregon.

Portland is among the nation’s fastest growing communities, and median home prices should continue increasing – giving investors profitable opportunities. In a market as hot as Portland, investors can’t afford to move slowly on a deal. That’s where Lima One comes in. We’re the nation’s premier lender for real estate investors, and our goal is to help you close your deal as quickly as possible.

Whether you need new construction loans to stay competitive in Portland’s hot multifamily market, assistance with private lending, private money loans in Oregon, or purchasing a rental portfolio, Lima One can help. Our clients have different investment strategies, so we have designed our loan options to allow us to cater to their individualized needs. Contact us today to discuss your next deal, or if you have a deal in hand, accelerate the process by applying now.