25 Sep Real Estate Boom Slows in Portland
PORTLAND, Ore. —
After seven years of strong economic growth, real estate experts say Portlanders may soon notice prices are dropping.
“It’s hard to predict when economic expansions end,” said Gerard Mildner, director of Portland State University’s Center for Real Estate.
Mildner says that while growth has slowed in the city, the metro area’s suburbs continue to see their real estate prices go up due to a shortage in single-family homes.
“Even with all the cranes that we see, we’re still producing less housing today per year than we did in 1990 to 2007 on average,” Mildner said. “We’re actually building less units than we need.”
Mixed-use buildings have sprung up all over Portland, primarily on the city’s east side. Real estate broker Vinny Small says the increased supply has led to an increase in vacancy rates for both retail and residential units.
“When I do throw a two-bedroom apartment out there, I’m not getting the response that I used to,” Small said. “I’m actually having to do incentives, where you’ll give a free month of rent or lower the price, which wasn’t the case last year.”
Small says while the residential and commercial real estate markets are softening, he’s seeing more demand for industrial. Experts say this is due to many former industrial spots now being re-purposed for residential or retail. The lack of supply has led to a sharp rise in prices for warehouse space.