Max rent increase set for 2020
Per reporting requirements prescribed by Oregon's newest rent-control law, SB 608, the Department of Administrative Services released Wednesday the maximum rent increase for 2020, which will be capped at 9.9%.
That means renters in Oregon paying $900 for a one-bedroom apartment could see their rent raised to nearly $1,000 if their landlord so chooses. Accordingly, the maximum rent increase only applies to units that are older than 15 years.
The DAS Office of Economic Analysis uses the annual 12-month average change in the Consumer Price Index for all urban consumers west of the Rocky Mountains — 2.9% — plus 7% to get the maximum rent increase.
According to OEA Senior Economist Josh Lehner, it's unlikely most Oregonians will see a 9.9% increase in 2020.
"The market is probably going to show increases below the maximum," Lehner said. "We've seen significant slowing in rent increases in places like say, the Portland region, where in the last few years, vacancies are increasing as the supply of new apartments come online and rent increases have been slowing. That's not to say there won't be units that are up at maximum, but I don't think the vast majority of units will see their rent increase by that maximum amount."
Lehner said that it's important to keep in mind that different units, different segments of the market and different regions of the state will experience different things.
Passed in February of this year, SB 608 was aimed at preventing landlords from terminating month-to-month tenancy without cause after 12 months of occupation, but it also limited the limited the maximum rent increase to that 7% above the annual change in CPI.