Top 5 Best Real Estate Investment Markets in Oregon

By 

Ben Mizes

Updated 

May 6th, 2019

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The Oregon real estate market has been hot since the end of the Great Recession, with prices around the state skyrocketing. But there are still some great Oregon markets for investors to consider, from big cities to small rural towns.

There are a lot of things to love about Oregon. From its natural wonder to its urban playgrounds, Oregon has something for everyone.

The Oregon market has grown rapidly over the last several years; from 2015 to 2019, the median home value skyrocketed from $2 m39,000 to $345,000. Oregon home values went up 5.6% in 2018 and are expected to rise another 3.9% in 2019.

Zillow currently calls the Oregon market “neutral,” but there are definitely parts of the state where real estate investors can expect to get a solid return on their investment. From small towns with exceptionally well-priced real estate to some of the fastest-growing cities in the U.S., Oregon has a lot to offer real estate investors.

If you’re thinking about investing in Oregon real estate, here are five markets to consider.

Salem Metro Area

Salem is the capital of Oregon and has a reliable real estate market. Demand exceeds supply in the city, yet Salem is still relatively affordable, as far as Oregon markets go.

Rental properties, and single-family homes, in particular, are a great investment in Salem. The Salem area has seen steady growth in the first part of 2019 and that is expected to continue throughout the year. Salem has a steady economy and demand for homes exceeds supply, driving prices up. And new residents keep coming.

One of the best parts about investing in Salem real estate is that it won’t come at the high premium of other Oregon cities. The median home value is $282,900 in Salem versus $312,800 in Eugene or $425,500 in Portland.

Douglas County

Douglas County real estate is swiftly going up in price, but still very affordable for Oregon, with a median home value of $202,800. Prices in Douglas County went up 11.4% over the last year and are expected to increase another 5.6% over the next year.

Douglas County includes Roseburg, Reedsport, Sutherlin,the entire Umpqua River watershed, and extends from the Pacific Ocean to the Cascade Range. The average monthly mortgage payment is significantly lower than the average monthly rent and the average buyer is able to break even on their investment in just 3.2 years. Demand outpaces supply, making Douglas County an attractive place for rental properties, particularly single-family homes.

Clatsop County

Clatsop County is in the northwest corner of Oregon and home to a beautiful coastline, Cannon Beach, Gearhart, Seaside, and the Astoria metro area. The median home value in Clatsop County is $310,000, and the median home value in Astoria is $269,800, well below the statewide median of $346,000.

The median Clatsop County home value went up 10.9% last year and is expected to increase more modestly, at 4.6%, throughout 2019. Like Douglas County, Clatsop County sees average mortgage payments significantly lower than average monthly rent, making it a good place to look for traditional rental properties and single-family homes.

Curry County

Including Port Orford, Gold Beach, and Brookings, Curry County is a charming area in the southwest corner of Oregon, that includes Oregon Islands National Wildlife Refuge, part of Siskiyou National Forest, Gold Beach, and the Brookings metro area.

Curry County is both affordable and has a steadily increasing property value. The median home value in Curry County is $312,700, significantly lower than the statewide median. Curry County is home to natural beauty, a solid economy, and solid real estate investment opportunities.

Portland

Home to nearly 650,000 residents, Portland is the largest city in Oregon, the second largest city in the Pacific Northwest, and the 26th largest city in the country.

In most of Oregon, investors should look towards single-family homes, but in Portland, the market is right for people looking to buy multiple and larger apartment buildings.

Portland real estate exploded between 2012 and 2018, going from a $228,000 median home value in 2012 to $424,000 by the end of 2018. However, the Portland market has finally started to cool, making 2019 an exciting year for investors.

For the last few years, apartment rental property in Portland had among the highest purchase prices in the nation, but with the market finally cooling and more properties becoming available, now could be a good time to make the decision to invest in Portland.

Learn More: Oregon Real Estate Market Trends in 2019

Next Steps

Every investor, from novice to experienced, can benefit from working with a good buyer’s agent. Clever Partner Agents are all top-rated in their areas and can offer individualized guidance and support on breaking into the market or scaling your portfolio.

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