Should I rent or buy a house in Portland, Oregon? - CCCU
Thursday, July 11 CCCU
Renting vs. buying a home in Portland, Oregon
Should you rent or buy a home in Portland, Oregon? 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. Here’s key information about the Portland housing market to help you decide if renting or buying a house in Portland 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.
What to know about the Portland housing market
Although Portland rent prices went down by half a percent in January 2019, the average monthly rent increased by 2.5 percent
over the past year. Currently, the median rent price in Portland, Oregon is $1,483
. In May 2018, the median monthly mortgage payment in Portland and the surrounding cities was $1,587
, depending on your down payment.
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 January 2019, the median home sale price dropped
for the first time in seven years. If prices continue to decrease, this could be a good time to buy a home if the market continues to cool going into 2020.
What to consider when choosing to rent or buy a house in Portland
The first thing you must consider when deciding between renting or buying a house in Portland
is 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.
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.
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 real estate 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 house 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
. Mortgage rates are also currently low for first-time homebuyers
, and 100% Home Loan Financing
options are available with no money down. Portland has also seen a slight decrease in median home sale prices, making 2019 a good year to consider homeownership.
According to data from the U.S. Bureau of Labor Statistics
, Americans used a third of their overall expenditures on housing costs between July 2016 and July 2017. If you’re able to spend your money on mortgage payments instead of rent, you’ll reap the benefits of homeownership in the long-term.
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
Portland Consolidated Community Credit Union if you have any questions about buying a house in Portland, mortgage pre-approvals, home loans, and more.