2023 Portland Housing Market Trends: What’s Hot and What’s Not in Portland Real Estate?

Posted at 15:35h in Uncategorized by Portland SEO rowth

Portland. It’s weird. It’s wonderful. And it continues to be a real estate hot spot for out-of-state buyers, families, and young professionals.

Portland’s housing market remains competitive. What does that mean for potential buyers?

We delve deeper into the Portland housing market by exploring past and current trends and answering some of your most common PDX real estate questions.

The Portland Housing Market by the Numbers
Top 3 Trends in the Portland Housing Market This Year
FAQs About the Portland Housing Market
PEGGY HOAG REAL ESTATE Will Help You Find the Home of Your Dreams in the Portland Metro Area or the State of Oregon

The Portland Housing Market by the Numbers

Portland is a unique city, known for breathtaking mountainscapes, huge expanses of green space, and vibrant culture. But those aren’t the only reasons people are moving to Oregon’s biggest city. Portland is also a haven for outdoor enthusiasts and foodies, as well as anyone working in the tech, renewable energy, or sporting industries.

And while the real estate market has leveled off since its boom in 2016, Portland is still a city worth investing in. The Portland Metropolitan Association of Realtors (PMAR) frequently releases comprehensive Portland housing market reports, so you can always keep an eye on your investment.

Here’s a snapshot of what you can expect from the Portland housing market in late 2023:

Average sale price of a home: $608,300
Median sale price of a home: $536,000
Average days on the market: 37
New listings per month: 2,923

Now let’s compare that to the stats from the Portland housing market in late 2022:

Average sale price of a home: $607,700
Median sale price of a home: $548,400
Days on the market: 28
New listings per month: 3,209

While housing markets are hard to predict, historically, homes have increased in price year over year. A stable market is an indicator of a strong economy and could be the best time to buy a home.

Top 3 Trends in the Portland Housing Market This Year

#1: Many Residents Are Moving Out of the City

While Portland experienced substantial growth from 2010 until 2020, many people are moving out of the city and into Portland’s suburbs. In 2021 and 2022, Portland proper saw a decrease in population, while in the suburbs, such as West Linn and Wilsonville’s population growth has been booming.

What’s the appeal of moving to the suburbs?

It could have something to do with the affordability. While Portland’s condo prices continue to fall, they remain a great purchase for investors looking to add to their real estate portfolios, but they’re not nearly as attractive to young buyers looking to invest in Portland as a home.

Whereas, Portland’s suburbs offer appealing housing prices to both newcomers and Portland natives alike. Communities such as Beaverton or Hillsboro, still have a median home price of under $500,000 compared to Portland’s median home price of $536,000.

In addition to a great quality of life, Portland’s suburbs offer great access to the city’s amenities, sprawling forests, and proximity to wine country. What more could you ask for?

#2: Lots of People Are Moving Into the Greater Portland Metropolitan Area

Not as many people are moving into Portland proper, but growth continues at a steady rate in the Greater Portland Metropolitan Area, which includes areas such as:

Beaverton
West Linn
Wilsonville
Sherwood
Newberg
Canby
Troutdale
Tualatin
Hillsboro
Forest Grove
Banks
Milwaukie
Oregon City
Vancouver
Camas
Washougal
Ridgefield
Battleground
Brush Prairie
And more

These cities within the GMA are highly attractive to out-of-state transplants and Portland city-dwellers for a variety of reasons. The quality of life offered is attractive to many, as numerous amenities and activities are just around the corner. Since 2020 60% of HOAG’s home sales have been to buyer’s moving to our region.

Some benefits of living in these communities include:

Proximity to Mt. Hood
The Columbia River Gorge
Wine Country
Proximity to the Pacific Ocean
Many hiking, biking, and watersport options
Upscale bars, fine dining, and gastronomy
Art galleries and museums
Entertainment and sporting events

Families are particularly attracted to the schools in these areas, while retirees enjoy a slower pace of living, but with all the amenities within a short drive.

#3: New Construction Trends Reflect That More People Than Ever Are Working From Home

The COVID-19 pandemic continues to shape the way Americans work. Since 2020, 76% vs. 60% cite preference as the reason they choose to work from home, while those who said relocation was their reason has increased from 9% to 17%.

Not only does Portland offer great internet services, but many new home builders are also incorporating workspaces into their plans. Most new homes are equipped with at least one home office, making the greater Portland area and Clark County a desirable location for remote workers.

Are you considering a move to the Greater Portland Metropolitan Area? PEGGY HOAG REAL ESTATE can help. We’re Portland housing market experts with a keen eye for a good investment. Call us for more information or to schedule a viewing today. 503-906-1370

FAQs About the Portland Housing Market

What Types of Homes Are in Demand?

As leading experts in Portland’s luxury home market, we often get asked what type of homes sell the quickest and when to expect multiple offers.

From our experience, condo living is out and single-family homes are in. With a stable market, buyers are less hesitant to make an offer on their dream home as opposed to settling for a less expensive condo.

Homes that are under a million dollars and priced per market comparisons tend to receive multiple offers, whereas luxury homes priced in the two-million-dollar range or more are likely to stay on the market longer.

What Neighborhoods Or Areas Around Portland Are Popular?

Portland, Oregon, is known for its diverse neighborhoods, each with its own unique character and appeal. While popularity can change over time, here are some neighborhoods and areas in and around Portland that are often considered popular:

In Portland:

Pearl District: Located in downtown Portland, the Pearl District is known for its upscale urban living, art galleries, trendy boutiques, and excellent dining options. It’s a vibrant and walkable neighborhood.
Hawthorne: The Hawthorne District is in Southeast Portland and is famous for its bohemian vibe, eclectic shops, and an array of dining and entertainment options. It attracts a diverse community.
Alberta Arts District: This Northeast Portland neighborhood is known for its artsy and creative atmosphere. The Alberta Arts District features galleries, food carts, live music venues, and unique shops.
Irvington: Irvington is an established neighborhood known for its historic homes and tree-lined streets. It has a strong sense of community and is centrally located.

Outside Portland:

Beaverton: Another suburban area, Beaverton offers a range of housing options, good schools, and convenient access to downtown Portland. It’s known for its family-friendly communities.
Lake Oswego: A suburb south of Portland, Lake Oswego is known for its upscale homes, waterfront properties, and excellent schools. It’s a popular choice for families.
Forest Heights: Located in the West Hills, Forest Heights is known for its suburban feel, excellent schools, and proximity to nature. It offers panoramic views of the city and surrounding landscapes.
Oregon City: Located to the south of Portland, Oregon City offers a blend of historic charm and modern amenities. It’s known for its picturesque downtown area and the Willamette Falls.
Happy Valley: Known for its suburban, family-friendly environment, Happy Valley is known for excellent schools and beautiful natural surroundings. It’s often sought after by those looking for a peaceful residential community with access to outdoor activities and amenities while still being close to the city of Portland.

How Much New Construction Is There?

Currently, there is not enough new construction to meet the demands of buyers. Single-family home construction slowed down from 2021 to 2022, with nearly a 30% year-over-year decrease in permit activity.

However, construction for multi-family homes increased from late 2022 to early 2023 by nearly 23%, but later slowed down, finishing the year at a 16% increase over the year prior.

What Are the Current Trends in the Oregon Housing Market Overall?

The number of people moving into Oregon far outweighs the number of people leaving. In fact, Oregon was the second most popular state to move to in 2022, even though it was the first time since the 1980s that the population saw a decline.

As we move forward, Oregon will continue to be a popular state to call home. Plentiful employment opportunities, a high quality of life, and a stable housing market continue to lure people to the beautiful state in the Pacific Northwest.

PEGGY HOAG REAL ESTATE Will Help You Find the Home of Your Dreams in the Portland Metro Area or the State of Oregon

If you’re looking for information regarding selling or buying a home in the Greater Portland Metropolitan Area, you’ve come to the right place. We are Portland housing market experts, with more than 30 years of experience listing and selling all types of Portland properties.

Our process always begins with a comprehensive market evaluation specific to your area and home. From there, we’ll scour the existing database of homes to find your perfect fit.

Are you ready to invest in the Portland housing market? Contact PEGGY HOAG REAL ESTATE today. 503-906-1370