It is important for property managers and landlords alike to be aware of every change in the rental market. If you don’t properly understand the market, it is easy to underprice a property, overprice, which is often worse, or raise the rent too high, causing an unintended vacancy. Empire is careful to monitor and stay on top of every fluctuation in housing trends.
What we have observed:
For the past three years, the market in Eugene, and most of the rest of Oregon, has been insane. First, in 2016, the market in California peaked, driving a huge influx of people out of California and into the Willamette Valley. There was only limited housing available, and tight zoning made new construction difficult and expensive. There was high demand, but there was no way to increase the supply. Hence, rent soared. The added pressure pushed prices up, and then it peaked and began to show signs of dropping.
In 2017, HB 2004 was introduced. Even though the bill was defeated, it caused many landlords to sell. The reduction in inventory drove rent right back up.
It remained steady for the first half of 2018 but started to decrease at some levels mid-September. It would have stayed that way, but then SB 608 was introduced. The bill and the number of landlords selling caused a short period where prices held steady. But that couldn’t last, and now rent is starting to decrease again.
During our market update for 2018, we observed that the real estate selling market was showing signs of a slight drop in price. We predicted that in time the same reduction would affect the rental market. What goes up must come down. As of now, the decrease is small and showing signs of staying that way.
Other factors, such as interest, are remaining steady. The overall quality of applicants has even improved somewhat, which is encouraging.
What may be on the horizon:
Empire doesn’t foresee any major shifts in the near future. The rental market will probably continue on as it is now.
At the end of the day, this market update isn’t good news or bad news. It is just news. The rental market moves in cycles and this is just another phase of the journey. If you have questions, feel free to contact Empire and discuss it with your Property Manager.
And as always, Happy Landlording!