Apartmentlist.com released their monthly report, here is the summary:
- Since January, rents in the city of Portland are down 4.1% while rents in nearby suburban areas are, on average, up 3.3%.
- Of the 6 local suburbs for which we have data, every single one of them is experiencing higher rent growth than Portland.
- The Portland suburbs with the fastest-growing rents are Vancouver (+5%) and Wilsonville (+4%).
This trend is currently ongoing throughout the United States, as the average decrease in cities is dropping:
Breaking down the numbers by metropolitan area shows how widespread this trend is. In 27 of 30 large metros, principal cities are experiencing faster rent drops or slower rent growth than their surrounding suburbs. And in 11, including major economic centers like Atlanta, Dallas, and Philadelphia, apartments in the principal city are getting cheaper while at the same time apartments in the suburbs are getting more expensive.
Why Is This Happening?
The articles cites a number of reasons:
- The pandemic is effecting cities differently than suburbs
- Home buying is red hot
- Cities have more newer, luxury apartments that see vacancies during the pandemic