Whether you’re just moving to the City of Roses or are a PDX native, you might be wondering if buying a house in Multnomah County is right for you. Portland’s housing market has been tight in recent years for renters and buyers.
In order to decide if buying a house in Portland is the right choice for you, there are a few key factors to consider. In addition to researching rent prices, you’ll want to evaluate the current housing market, your overall financial situation (including your income and credit health), maintenance costs, and your long-term living plans before making a decision. Here’s key information about the current Portland housing market to help you decide if renting or buying a house is right for you.
What to know about the Portland housing market
While prices throughout the country continue to see increases, according to rent.com, Portland is above average compared to other cities. The average rent for an apartment in Portland is between $1,272 and $2,295 in 2022. Northwest, Downtown, and The Pearl District continue to be the most popular and expensive areas to rent, while Cully, Parkrose, and Woodland Park are a few of the most affordable.
While it appears that it may cost slightly less to rent compared to paying a mortgage, that’s not the only factor to consider when deciding on buying a home in Portland. Purchasing real estate in Multnomah County continues to be competitive. But in April of 2022, more homes came onto the market than in the previous month, expanding available inventory in the Portland metropolitan area.
What to consider when choosing to rent or buy a house in Portland
There are many things to consider when deciding between renting or buying a house in Portland. Here are a few of the most important considerations.
What’s your overall financial situation?
This includes your income, credit, savings, and any other assets you have. In order to qualify for a mortgage loan, you’ll need to prove your finances, show positive credit, and confirm you have enough savings or other funding to make a down payment and your mortgage.
If you’re looking to improve your personal finances before buying a house in Portland, renting is a great option for those needing more time to save money and build credit.
What’s the cost and effort for home maintenance and upkeep?
Next, you’ll want to consider the cost and effort required for home maintenance and upkeep. As a renter, your landlord will likely cover the costs for most repairs. However, homeowners are responsible for paying any expenses on their own. Houses with newer construction will require little upkeep, but older houses will likely need more costly care.
How long will you stay in your living space?
The last thing to keep in mind when deciding between buying or renting in Portland is how long you intend to stay. If you’re planning on living here for a year or two, it may be in your best interest to rent. But if you know you’ll be staying for several years, purchasing a house in Portland in 2022 might be the right decision to make. While buying a home in Portland costs more upfront and requires funds for maintenance and repairs, becoming a homeowner is an investment, which could allow you to turn a profit later.
Buying a home in Portland
Homeownership in Portland–or in any city–is a long-term commitment that demands significant time and money depending on the home and your current and long-term situation. If you’re ready to buy, purchasing a home is an excellent investment opportunity.
Whether you rent or own your home, the Portland metro area is an amazing place to live. Be sure to weigh all factors before deciding to rent or buy in PDX. Contact CCCU if you have any questions about buying a house in Portland, mortgage pre-approvals, home loans, and more.
We want to make finding and financing your home as easy as possible. Our credit union offers a range of home loan options, including traditional and adjustable fixed-rate mortgages, as well as 100% home loan financing. Use our mortgage calculator and check out our other mortgage resources as you find your home.
Join us today to start reaping the benefits of banking with a credit union. We love our members and serve those throughout the metropolitan area, including Multnomah, Yamhill, Clackamas, Columbia, Washington, Clark, Skamania, and Hood River counties. We’ve got three physical branches you can visit in Portland as well as one in Hood River.
Plus, when you join CCCU, you’ll have access to convenient mobile banking as well as 5,600+ CO-OP Shared Branches and over 30,000 surcharge-free CO-OP ATMs nationwide.