If you’re moving to Portland, you might be wondering if you should rent or buy a home. This is by far one of the most common questions we hear from clients relocating from out of state. And while you may think the answer is an easy one, there are a few factors to consider based on your wants and needs when you arrive in Portland. There are buyers that will buy without knowing much about the city for investment purposes and because they simply don’t want to rent. However, If you’re planning to buy and stay in the same house, and really call it home, for a while you need to think about the Portland market, where you want to live and why, schools and current mortgage rates. If you are planning on solely buying because you don’t want to lose rent and home to build equity, it’s important to think about the Portland market and how it will change over time.
Understanding the Portland market
In the last decade, Portland has seen a population boom. We’ve seen people relocate from every corner of the country (not just California) to Pacific Wonderland, and for good reason. Until recently, you could move to Portland and live here on a dime. Not really, but close. Portland was the last remaining city on the west coast where you could find affordable housing, both as a renter and a buyer. Depending on where you’re moving from, you may still think Portland is inexpensive. If you have been scanning sites like Redfin and Zillow, you’re probably aware of what homes cost, but there are a few things to note. In Portland’s urban Eastside core (from the Willamette River East to 82nd), you’ll find the market is competitive, and low inventory, particularly in homes under 450k. While some homes sit on the market a little longer than others, some receive multiple offers within a week of listing. Factors determining whether it will sit or fly are based on a house’s location, size, price, and amenities.
For homes above 450k, you may see slightly less competition. Listings may sit on the market a bit longer in homes over the median home price in Portland. Location will play a factor too. If a house is practically perfect in a great location with good schools in the urban core, it may fly off the market a little bit sooner.
Should you rent or buy in Portland
The market varies on either side of the Willamette River. In neighboring suburbs like Beaverton, Tigard, and Hillsboro, you’ll get more for your dollar and may not have to outbid other buyers. It’s not that these areas aren’t desirable. They are, especially if you like green space and work on the westside. They’re just not as close to downtown Portland and other hubs of activity. And on that note, let’s talk a little more about location and how it factors into your decision to buy or rent when moving to Portland.
Location…it’s kind of a thing in Portland
When you’re considering whether to buy or rent, one of the most important things to think about is where and how you like to live. Also, where you’re moving from and if you want something similar or completely different. Do you want to be able to access restaurants and shopping in your neighborhood? Are you wanting to hit the trail after work for a run? Do you need privacy? If you’re looking to get around without a car, you’ll have better luck on the East side of the Willamette River. SW + NW Portland are close to downtown but take a little bit more work in terms of public transportation and commuting. Most homes East of downtown are in densely populated neighborhoods. Houses are pretty close together and sometimes you share driveways. There is green space but not as much as you’ll find in the outlying areas.
Portland Schools and what you need to know
What are your plans? If you’re planning to buy now, what will your life look like in 5 years and are you planning on starting a family? Depending on what your plans are if you’re planning on raising a family in Portland, you’ll want to think about Portland schools and where to buy. If you can say without a doubt that you’ll send your kids to public schools in Portland, research is key when it comes to buying. The complexity of Portland’s schools could be a whole other post. If you’re looking at public schools refer to Portland Public Schools and Great Schools. These are great places to start. This is one of the main reasons we talk to clients about renting first then buying when you move here. If you have young children that will enter elementary school in the next few years, it’s important to plan ahead a bit based on commute times, what your kids need, and what kind of education you’re seeking. If you have a couple of years and are new to the city, you may want to rent while you get the lay of the land and Portland’s schools.
Mortgage rates and When to Buy in Portland
It’s no secret that mortgage rates are predicted to rise over the next few years. This will directly impact the market. With the low rates, we’ve seen over the last several years, buying a home may have been pretty accessible for some. With rates potentially going up, so too will mortgage payments. If you are concerned about the possibility of losing out on buying a home you can afford due to rising mortgage rates, you may plan to buy sooner.
The Benefits of Renting in Portland
Renting in Portland has its benefits for newbies. If you don’t know the city well, even if you’re in a position to buy, renting for a year might be the best decision for you. Taking into all the previous factors discussed, we often recommend renting over buying for those who need to get to know the city and get a better picture of what living in Portland is like. There are pretty stark differences between the urban core and outlying areas, and it’s a good idea to have a plan before buying. We can answer a lot of questions about the city, it’s schools, neighborhoods and everyday life. Ultimately, you know what you like better than we do and want you to make the best decision for you and your family.
In general, moving to Portland (and most cities) takes some planning. If you are unsure about whether you want to buy or rent and have questions, we’re here to help. Our goal is to make sure you find the best home for you when you need it. We know the city, but ultimately you know how you like to live better than we do. And ultimately what would work best for you.