Housing affordability improving short term say economist
Economist Josh Lehner of the Oregon Office of Economic Analysis studied the Portland region's apartment market this week.
Lehner looked at projected population growth patterns and age demographics.
He said in the short term he sees an influx in the apartment supply, resulting in higher vacancies and a flattening of rent costs, which helps affordability.
According to Lehner, given the market conditions with increasing interest rates and slowing economic growth, this could become concerning for developers, lenders, and property owners.
In the longer term, Lehner said we still need more housing given the growth projections.
It's a bit of a catch 22 in that housing affordability could deter people from moving here, and Lehner said right now we are at a competitive advantage because the region can attract young professionals here.
He said in the longer term, "If the region does not build enough ownership product, then more households will continue to be renters even (if) they have the resources and desire to be owners."
To read Lehner's blog, click here.