PORTLAND, Ore. – Anyone who lives in Portland knows that home prices have been spiking over the past few years. Now, one of the top financial agencies named Portland as the city with the highest-rising home prices in the nation.
The S&P Dow Jones Indices released data showing home prices in Portland have grown 11.8 percent year-over-year in January 2016.
Seattle and San Francisco took the number two and three spots, with a 10.7 percent and 10.5 percent increase, respectively.
On average, home prices in cities across the country rose 5.7 percent. The S&P Dow Jones Incides reported the western part of the country had the largest price gains, while the northeast had the weakest gains.
The booming market is also making it hard for new buyers to get into homes.
"While low inventories and short supply are boosting prices, financing continues to be a concern for some potential purchasers, particularly young adults and first time home buyers,” said David Blitzer, Chairman of the Index Committee. “The issue is availability of credit for people with substantial student or credit card debt.”
Blitzer said home prices are rising at twice the rate of inflation.
While Portland homes are getting more expensive, rents are intensifying even more quickly. According to data from Zillow, the average rent for all Portland homes has risen from $1563 to $1770 between January 2015 and 2016, an increase of 13 percent.