| johnsobas said: so the cost of living rise of $3 was completely based on renting a 2 bedroom apartment and not anything else. I will say my rent went up 15% this year in minnesota and i'm pissed about it. The only other thing that seems to be going up a lot is health insurance for obvious reasons. |
Ask and ye shall receive.
http://money.cnn.com/2016/02/05/pf/oregon-unaffordable-california/
Portland home prices jumped 11.1%between November 2014 and 2015 -- the biggest increase in the country. Rent prices also went up 13.7%, according to Zillow.
The median home price in Portland is now $345,500. In San Francisco, it's $1.12 million.
But wages haven't kept pace. Real estate agents said many new residents have high-paying jobs that let them work remotely.
"They maintain the salaries from where they use to live ... and those salaries -- especially those having to do with software, engineering and development -- happen to be higher than what most companies pay in Portland," said Alyssa Isenstein Krueger, a real estate agent at Living Room Realty.
Tight inventory and rising home prices make it tough for locals to compete.
"For people in Portland, it feels like the city is getting away from them," said Nick Krautter, a real estate agent from Keller Williams Portland. "For two school teachers making $70,000 a year, it's tough for them to buy anything for over $300,000. But for people coming here with millions, it's a bargain."
Krautter worked with a client last year who sold his home in Silicon Valley for $4 million and was considering buying two 12-unit apartments in Portland.
All-cash offers are prevalent, and tend to come from new residents. "People are making crazy offers ... it starts to skew the market in what houses should be selling for," Johnston said.
Bidding wars have skyrocketed, with some homes selling for $150,000 above the list price, according to real estate agent Rachel Freed at Urban Nest Realty. Now, when she has a client with a $550,000 budget, they consider homes priced around $450,000 in order to compete.
So, it's not just 2 bedroom apartments being affected, although I could have told you that from the start but this makes for a much more compelling arguement.
