Forbes Magazine recently released their predictions for the 2016 national housing market. They forecast which cities are most likely to outperform or underperform the rest of the country. The predictions are based primarily on job growth and housing affordability. Portland was named as one of the housing markets most likely to outperform the rest of the country.
While Portland housing prices seem high to many long term residents here, and to outsiders considering a move to the northwest, our home prices are still low relative to other major cities on the west coast, which is why some of those cities are on the most likely to under-perform even with strong jobs numbers.
According to Forbes, “the candidates that are among the top performers in regards to both rising home sales and home prices will generally be out West and in the South. Salt Lake City, Portland, and Riverside will likely experience a good year in the West. Atlanta, Charlotte, and Tampa look solid for gains in the South. One Midwestern city will shine and that market is Grand Rapids. For the Northeast, Providence could surprise us.” With the exception of Providence, all these cities had more than 3% job growth during 2015 though Providence was not too far behind.
The under-performers forecast all experienced significant job losses, and historically, as job trends go, so goes the housing market.
Job growth driving huge migration of new residents to Portland
According to the Oregon Office of Economics, approximately 40,000 people are moving to Portland every year. These new migrants come from everywhere and include all ages and ethnic backgrounds. But the hugest number of migrants are in the 20-30 year age group and are well educated, even if many are unemployed. That may seem like an oxymoron, but for the educated, areas with high job growth are natural locales for seeking employment. And the young are generally more mobile than any other age group.
Oregon is in fact a state of migrants. 51% of all current residents are from a different state or country. Yes, it’s true that the majority of migrants are from California and New York, but all states are represented and 15% of the migrants are from outside the US.
So far it seems that all major housing analysts are predicting a very strong year for the Portland real estate market in 2016 as compared to the rest of the country.
Want to know how your neighborhood ranks in terms of sales and pricing? Check out the links below to learn more about where homes are selling the fastest and at the highest prices. Close in neighborhoods dominate both lists, but there are many more suburban neighborhoods on these lists too.