Can Oregon Property Owners Raise The Rent? How Much Will It Increase?

The maximum increase in rent permitted by residential landlords since Oregon’s statewide rent control was implemented three years ago is 14.6% in 2023.

Before 2019, when there were no statewide limitations, things were far less controlled. However, the recently disclosed rate is significantly higher than the 9.9% permitted in 2022 due to inflation. State authorities calculate the rates by adding 7% to the Consumer Price Index for All Urban Consumers, West Region’s 12-month average change, as reported most recently by the Bureau of Labor Statistics.

According to data from the state and the federal government, even if Oregon had enacted rent control in 2000, the limit for the following year would still be the highest one to date. Newer building in the state is not subject to rent regulation.

The Fed is still working to reduce inflation, which increased year over year in August and has consequences for Oregon.

Josh Lehner, a state economist, described the higher maximum rate as “not a surprise” for anyone who has been paying attention. We aggressively raised it with policymakers, we included it in our prediction document, and we sought to flag it, he continued.

Oregon Property Owners Raise The Rent
Oregon Property Owners Raise The Rent

Lehner added that despite this, market rents as a whole don’t necessarily rise at the same pace the state determines. Instead, they often abide by incomes.

Rent regulation has long been a contentious issue in Oregon and elsewhere.

The strategy “leads to a decline in the available supply of rental property in a neighborhood,” Greg Frick of HFO Real Estate noted in 2019. In an area with rent control, many fewer investors have the means or the desire to purchase or construct rental properties. β€œ

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