Despite adding 21,800 jobs in a 12 month period ending in March 2019, Portland’s rent growth rose at less than half the national average rate.
According to a recent study by Yardi, year-over-year rent growth in Portland slowed to 1.2% as of May. During this same period, Phoenix led the nation in rent growth, with a rate of 6.8%. For comparison, the U.S. average rent growth sits at 2.5%.
Portland’s employment growth represented a 1.8% year-over-year increase for Oregon’s largest city. The workforce remains diverse, with education and health services leading growth (6,100 jobs), while manufacturing gained 4,500 positions. The mining, logging and construction field recorded the largest year-over-year increase through March, adding 2,800 positions, a 4.0% increase. In short, employment growth in Portland remains slightly above the national rate of 1.6%, while the rent rate is down to about half of the national rate.
The rent-growth deceleration comes at an interesting time for Portland. Earlier this year, Oregon passed a new rent control law that limits rent increases to 7 percent each year. Additionally, in July, Oregon became the first state to pass legislation that eliminates exclusive single-family zoning in much of the state.