The Fastest Growing Cities in Oregon For Real Estate Investors
It’s no surprise that Oregon is a popular moving destination. For years now, we’ve been one of the top states for inbound migration. While the trend may be slowing, Oregon was still #2 on a 2019 list of top moving locations. We can’t say we blame the newcomers! There’s so much to love about Oregon. If you’re an investor, it’s pretty safe to say that Oregon provides great opportunities for a large return on your investment.
In which Oregon cities should you consider investing?
Located on the Deschutes River in central Oregon, Bend’s popularity has exploded since the last recession. With its vibrant city life, river access, proximity to hiking, biking and skiing in the Cascades, Bend has something for everyone. Last year, Bend was named the third fastest-growing city in the country. Home values have followed suit, with values increasing 5.7% year over year. Currently, the median home value is at $475,000.
Home sales were still strong in May 2020, with the market affected by lack of inventory but not Covid-19 in particular. In fact, some experts believe Bend may be benefiting from the recent interest in urban flight. The Covid-19 pandemic has led some to consider relocating to the suburbs from the city to find a way of life that will be less impacted by stay-at-home orders. Instead of being stuck in a one- or two-bedroom apartment, former city dwellers could enjoy a backyard, a home office, and more space. Bend, with its livability and access to the outdoors, looks like a great option to many in other parts of the West. With its high demand and low inventory, Bend is a smart investment opportunity.
The largest city in Oregon, Portland has seen an incredible growth in real estate since the market exploded in 2012. Exciting investing opportunities started to arise in 2019 when the market cooled slightly. New home construction has dramatically slowed but demand is still strong – even during COVID-19 – thanks to Portland’s solid economy. If you’re looking to flip or rehab a regular detached home, there will be plenty of demand. Additionally, if you’re interested in multifamily properties, Portland may be a good option. After the multifamily market boomed in Portland for so long, the high prices have finally stalled, and more properties are available.
Situated in Clackamas County, Happy Valley is just east of Portland with great access to recreation on the Clackamas River and Mt. Hood. It’s one of the fastest growing cities and one of the most desirable areas in Portland Metro. Not only is Happy Valley a great location for families seeking a slower pace but it’s perfect for those wanting to take advantage of outdoor recreation opportunities. It’s this high quality of life that has contributed to Happy Valley’s strong real estate market, even when the housing market fluctuates.
As the capital of Oregon, the Salem area has a steady real estate market. More affordable for the average family than Portland, Salem still experiences a lack of supply. Single-family homes and rentals provide a smart investment opportunity, especially given the area’s steady growth and economy. The area around Salem, the mid-Willamette Valley, is the top producer of agricultural products in the state. Given its prime location, Salem is top in the manufacturing and distribution industries. Nearly 30% of Salem’s workers are employed in government, whether state, local, or federal.
Home to the University of Oregon and boasting easy access to outstanding natural areas, the bustling town of Eugene is an attractive location for a variety of people and families. Surrounded by wine country, lush forests, and farms, Eugene is known as a culinary destination thanks to its abundance of locally grown foods. Craft beer and wine aficionados also find plenty to appreciate. Those attracted to sports and the arts have a lot to love, too. The economy is stable as well, with its largest job sectors in education, healthcare, and technology. Overall, Eugene provides its residents with a high quality of life.
The population in Eugene is growing 2% annually with a total increase of over 14% since 2010. According to Realtor.com, in 2019 the median list price was trending up over 9%, with a median sale price over $335,000. The market is considered “somewhat competitive” but Eugene is suffering from a lack of inventory, especially those priced in the “starter home” category. Eugene does have a stable flow of buyers looking for homes in the higher-end price ranges, however.
Located in the foothills of the Cascades, Sandy is often considered the gateway to Mt. Hood and all the recreation that it offers. Situated about 25 miles east of Portland, Sandy’s citizens enjoy a slower pace but can easily access the city when they desire. Sandy also serves as the retail and commercial hub for small towns in the area, such as Estacada and the villages around Mt. Hood. The appeal of this area is no secret since Sandy’s population has been rapidly growing. Between 2010 and 2016, Sandy grew nearly 12%, the third-highest rate in Oregon, and its population increases almost 2% each year. As a result, Sandy’s housing market is considered very competitive. On average, homes cost $335,000 and spend 11 days on the market.