August 2025 Portland Rental Market Update
July brought a noticeable shift in the pace of the Portland rental market—at least within our corner of it. These numbers reflect Living Room’s rental portfolio, which is made up of single-family homes, individually owned condominiums, ADUs, and small 2–6 plex buildings across the Portland metro area.
After a busy June where homes were moving in just two weeks, the average days on market jumped from 14 days in June to 23 days in July. For many prospective renters, the uncertainty of the moment seemed to slow decision-making. We saw more people apply and then withdraw their applications—or disappear entirely—once approved and faced with signing a lease and paying a deposit. It’s not unusual to see hesitation creep in during mid-summer, but the volume of “almost-moves” this past month was notable.
That said, it wasn’t a slow market for everyone. Some properties, particularly high-end single-family homes in Portland’s inner NE neighborhoods*, or trendy condos on N. Mississippi, thrived. We had multiple homes receive more than one strong application at the same time, which gave us the ability to create a waiting list and quickly fill the home if the first applicant backed out. This competitive pocket of activity proved that well-priced, well-presented homes in desirable areas can still move quickly—even when the broader market is taking its time.
Rental Rates
On average, homes leased in July saw a 3.21% increase in rent compared to the previous tenancy. The gains were led by single-family homes and townhouses, while condos and ADUs generally held steady with their prior rent rates. This performance is consistent with what we tend to see in the summer: the property types that appeal most to longer-term renters often have the most pricing power, while smaller spaces see more modest shifts.
Lease Renewal Trends
Renewals continued to be a strong contributor to revenue stability:
- 73% of tenants offered a renewal signed a new lease, averaging a +2% rent increase.
- 17% chose to keep the flexibility of a month-to-month arrangement, paying a +6% premium.
- 10% decided not to renew and gave notice to vacate.
These renewal patterns are healthy for this time of year, especially given the slower pace in new leasing activity. Month-to-month premiums provide owners with a cushion for the extra turnover risk, while the majority of tenants locking in new terms helps ensure stability.
Seasonal Perspective
Overall, July’s numbers for our portfolio line up with seasonal norms—decision-making slows mid-summer, renters weigh their options more carefully, and homes in high-demand neighborhoods outperform the broader market. While we expect activity to pick up again as fall approaches, the takeaway from July is clear: strategic pricing, strong property presentation, and market-savvy leasing can keep homes competitive even when the pace slows.
What This Means for Landlords
Stay flexible but firm. Waiting lists and a well-managed application process help fill homes faster when first-choice applicants back out.
Be ready for slower commitments. With more applicants hesitating or backing out, having a strong property presentation and competitive terms is critical.
Price with strategy. Homes in the right location and condition can still command increases—even in a slower month.
Prioritize renewals. Renewal rates and modest rent bumps provide stability when new leasing activity softens.
Consider month-to-month premiums. They can offset turnover risk while keeping your options open for future leasing opportunities.
*The featured photo pictured is a home in Portland’s NE Irvington neighborhood, renting at $4000/month, had over 25 folks on a waitlist within the first 48 hours of accepting applications.
From the desk of Coty Thurman | Living Room Property Management President & Broker
