Will Portland’s Housing Boom Go Bust Anytime Soon?
It should come as no surprise that homeowners and buyers alike are skittish about the current housing boom in Portland. At the moment, buyers seeking new homes are flooding the market and current construction simply isn’t keeping up. How long will it last?
If you can believe the trends, Portland’s housing market isn’t likely to go bust anytime soon. In the last several years the city and surrounding areas have seen significant population growth and numbers continue to climb.
The influx of young professionals may be due to a growing job market, lower housing prices than nearby cities like Seattle and San Francisco, and/or a desire to enjoy the slower pace of life in the Pacific Northwest.
Whatever the reasons, people are flocking to popular Portland neighborhoods in search of traditional Vics and craftsmans, as well as Portland modern homes. Sellers are fielding dozens of offers in some cases, including attractive cash buyers, and often selling at a margin significantly above asking price. These factors are driving the market up and up.
The rapid increase in demand has, in turn, led to an increase in alternative living options. This includes transforming industrial buildings into Portland lofts and even an upsurge in tiny homes. While Portland condos and houses in popular neighborhoods are still the most desirable options, the lack of such homes on the market is requiring buyers to seek other living situations.
In truth, some buyers are taking a step back and rethink their strategy due to high demand, competition and price increases. When young professionals get priced out of the market and find themselves up against cash buyers (often house flippers), what can they do?
Instead of going straight for a single-family home, many are seeking alternatives that are in their price range. This may mean looking at outlying neighborhoods or downsizing to minimalist choices like lofts or tiny homes, for example.
Portland Isn’t Going Anywhere
The reasons people want to move to Portland aren’t about to change anytime soon, and so you can better describe the housing “bubble” as a market trend. It may subside over time, but is unlikely to “burst”, so to speak.
Portland’s friendly residents, environmental-consciousness, foodie culture, and particular charm have drawn plenty of transplants over the last few years, and many have fallen in love with the city. Access to mass transit, holistic medicine, and wide range of alternative diet options only add to the appeal, as does the growing job market.
This Pacific Northwest city is on the map in a major way, and there’s no going back now. As a result, the so called boom will probably prove the beginning of a long-term upswing as time goes by.