Friday, August 10, 2018

Zillow Rent Data-Portland Metro Rents From June 2011-June 2018: Bottom Tier Rents Increased at Substantially Higher Rate than Top Tier Rents.

A recent Washington Post story HERE said that Portland rents for lower income households had increased by 40% from June 2011-June 2018. 

To see how that played out over time I decided to follow up with Zillow and asked for monthly tiered rent data for the Portland metro area and was pleased to see the data back within a couple of days. [Kudos to Zillow for their transparency!].

Zillow uses 3 tiers, and provides the median rent for each tier. The one caveat is that their tiered data does NOT include large apartments, about 10% of rentals according to Zillow. I speculate this might impact the top tier rents IF new construction projects are large and IF the rents in those projects skew toward the higher end.   

With those caveats I have embedded below and posted HERE (as a PDF file) two graphs and data tables that show: 
1. Top and bottom tier Portland rents for every June from 2011-2018 with a cumulative increase  shown in the far left.
2. Year to year bottom and top tier % rent increases from June to June since 2011, with the cumulative June 2011-June 2018 % increase shown in the far left.

Some observations:

  • From June 2011-June 2018 bottom tier rents increased by $478 and top tier rents increased by $531. That was an increase in bottom tier rents of 42.9% while top tier rents increased by 29.7%. 
  • In every June to June 12 month period except one (June 2015-June 2014 ) bottom tier rents increased at a faster rate than top tier rents. 
  • Top tier rents decreased in the last two June to June periods, by 5.7% from June 2018-2017 and by .1% from June 2017-2016. In the same periods bottom tier rents increased by 2.0% and 2.9%.
  • Not shown on graph. In June 2011 bottom tier rents were 38% below top tier rents, but in June 2018 that gap had narrowed so that bottom tier rents were now 31% below top tier rents.   
  • Also not shown: Multiplying rent by 40=Income required for rent to be affordable. For bottom tier Portland rent in June 2011 $44,600 income required. In June 2018 bottom tier income required was $63,720. That's an increase of $19,120. 

Originally created and posted on the Oregon Housing Blog.

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