Oregon Trends: Home Ownership vs. Renting
The population living in their own homes has decreased in Oregon, while the rental market grew, just as in the rest of the country. The cycle began with home prices rising to the point of forcing people out of the market. Financing became increasingly harder to obtain. Foreclosures pushed previous owners into rental homes. An unstable economy did not produce enough jobs with high enough wages for people to be able to buy homes. Frustrated home sellers often put their homes into the rental market, increasing the number of properties available for rent. Many potential buyers have been unwilling to do so until the economy and their job security stabilize.
The dramatic increase in need for rental properties brought the overall rental share more in line with the numbers of the 1990s. At that time, the rental share was about 32 - 36 percent of the total housing market. At the peak of the housing boom, that percentage dropped by two points, equating to from 100-200,000 Oregon residents owning homes than in the past.
The rental population spikes during difficult economic times due to job loss and lower income. As the economy improves and more of the work force is back on the job, the overall number of families moving into their own homes increases. Also, as the baby boomers retire and the younger generation reaches working age, more families will look towards home ownership and the demand for homes will increase. The future of the housing market continues to grow brighter as the economy gradually recovers. The journey may be a slow one, but the destination is gradually getting closer.