The biggest question and answer from Portland real estate is: Where are we going next?
Portland’s booming real estate market has driven out the competition in Vancouver and the surrounding area and it’s about to take a hit.
With a $1.3-billion condo boom that has taken over the city and the arrival of a new, larger hotel project, there are many people waiting for a spot to buy.
That means demand is expected to be high.
But who is coming into the market and what are the trends?
The biggest story right now is how much more people are willing to pay in the city.
Portland’s population is more than doubling over the past 20 years, according to the latest census.
It’s now about 30 per cent larger than it was 20 years ago, when the census began.
But the growth is not just about population.
The housing market is also thriving, with prices in the high-end neighbourhoods skyrocketing.
But it’s the influx of money from the U.S. and other foreign investors that has sparked demand.
Portland is still home to some of the fastest-growing cities in the U, and the population is expected grow by about 10 per cent over the next decade.
The trend in Vancouver is similar, with its population expanding by nearly two-thirds in the past decade, according a new report from Realtor.com.
But Vancouver’s booming economy and condo boom have put a crimp in the supply of apartments and condos in the area.
The city’s vacancy rate is the highest in the country.
“When we look at the growth in the condo market, we see that there’s a very large gap between demand and supply in Vancouver,” said Dan Brossette, senior vice-president of Realtors Vancouver.
“The demand is growing so fast that the supply is going down.”
Realtore.com has been tracking the Vancouver condo market since the 1990s and has seen a massive jump in demand.
The company’s latest survey of 1,000 properties found that the demand for condominiums has increased by 30 per to 35 per cent since 2011.
Vancouver has about 1.3 million condo units and another 700,000 single-family homes.
Brossett says condo prices have been rising more rapidly in Vancouver than anywhere else in the world.
“There’s this great supply of condos, which has come from the United States, Europe and Canada,” he said.
“But we also have a tremendous supply of affordable single- family homes.
That’s where the demand is coming from.”
Vancouver’s condo boom is driven by an influx of wealthy Americans, according Realtortech.com chief economist Adam Haddad.
The real estate investment group is one of the main buyers of Vancouver condos, and Brosset says demand from Americans is up over 40 per cent in the last two years.
The most popular condo is in the downtown core.
The average price in the centre is now more than $1 million.
Prices in the waterfront area are up 40 per per cent.
But buyers have to pay more in the suburbs, including Vancouver’s outer suburbs.
“In the outer suburbs, the prices have gone way up, because there’s just more demand from outside the core,” said Brossete.
“They’ve got a lot of people looking to buy and they’ve got very little supply.”
But there are signs that demand is easing in the inner suburbs, where prices are rising faster than the rest of the city at the moment.
Prices are down in most of the inner city, especially in downtown Vancouver.
But there is one exception.
Vancouver’s Inner Harbour, the area that includes the waterfront and the Fraser River Valley, has seen an increase in demand over the last year, Brossets says.
That area is the fastest growing in the province, with demand rising by 15 per cent last year.
In the next few years, demand for condos and single- and multifamily homes is expected, with average prices increasing by 10 to 15 per in Vancouver alone.
“We expect condo prices to increase over the coming years,” Brossetts says.
“As condos become more affordable, prices will start to rise.”
RealtyTrac says condo sales in Vancouver increased by about 16 per cent from January to March.
In Vancouver, condo sales are up about 30 to 35 percent compared to last year and the market is forecast to grow by almost 40 per to 45 per cent by 2027.