Wednesday, December 2, 2015

What Is the Hottest Market in the Country?

Is it San Francisco, Seattle, New York, San Jose, San Diego, Boston or Los Angeles?

Nope. It's Portland, Oregon.

Recently, Axiometrics stated that the Portland-Vancouver-Hillsboro Metropolitan Statistical Area has been the hottest market in the country for the second half of 2015. Several facts lend credibility to this statement including Portland's comparison of rents among other major West Coast markets, Portland's average hourly wage vs. the national average, and that more than one out of four residents is a millennial between the ages of 25-34 (the "cool" crowd).

Portland's average monthly effective rent of $1,336 in October is still lower than neighboring West Coast markets like Seattle, San Francisco-Bay Area, Los Angeles and San Diego. It is the highest in the United States among Axiometrics Top 50 Markets based on number of units.

This would partially explain the surge of new migrants who continue to flock to the City of Portland, where the average hourly wage is $1.67 more than the national average according to the Bureau of Labor Statistics enabling renters to get more bang for their buck with a $289 advantage.

The Bureau of Labor Statistics also reported a 3.3 percent bump in job-growth rate over the national average of 2 percent with 36,000 jobs added at the end of September.

Consequently, many Portland apartment developers and owners are smiling knowing their year-over-year average rent was $148 higher than in October of 2014. This translates into $53,280 per year of potential additional revenue for an owner of a 30-unit.

Read more about why Forbes ranked Portland No. 18 in its list of "Best Cities for Millennials" and other indicators that "Portlandia" is the hottest market.

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