Oregon has a vibrant and interesting history. It was settled in the early 1800s by fur traders seeking open land to build a new life. Even as more people moved west along the Oregon Trail, the state still offered a quiet and peaceful respite in its surrounding lush nature. Soon enough, residents began to build their homes to showcase the area’s beauty. Many of Oregon’s luxury properties were once large estates owned by farmers, ranchers, fur traders, and, eventually, captains of industry, who flocked to the state as large cities like Portland, Salem, and Eugene became metropolitan paradises.
Since then, Oregon has boasted a robust supply of luxury homes. Over the years, and especially in the last two decades, these lucrative properties have adapted to the modern day.
How luxury properties in Oregon have changed
Luxury real estate in Oregon has long been relatively inexpensive compared to Washington and California, its two “competitors” on the west coast. The cost of living in Oregon is 7.4% less expensive than that of Washington and 13.5% less expensive than that of California.
Where luxury homes in the last 20 years were in the high six figures and sported five or six bedrooms, a large lot of land, and usually a swimming pool and tennis courts, today you will be hard-pressed to find a luxury property for under the one-million-dollar mark in upscale communities like Bethany, Cedar Mill, or Forest Heights. These highly desirable areas boast luxe amenities and are often located in vineyards, gated communities, and resorts.
Over the past 20 years, Portland’s neighborhoods have grown in popularity and desirability, with Oregon’s most prominent residents seeking a slice of residential heaven in areas such as Forest Heights. Those looking at Forest Heights homes in the current market will find a hot seller’s market, with many buyers limiting contingencies and compromising with sellers to ensure their offer is chosen. At the same time in 2022, homes for sale in Bethany’s red-hot market saw a median time spent on the market of just six days.
Today, luxury real estate in Oregon has taken on a new dimension, with many eager to experience the high life in the state’s most jaw-dropping homes and willing to pay top dollar for it. In the Portland metro area alone, the typical home value in many upscale neighborhoods is $7,306,681.
Luxury real estate investors and homeowners have their pick of a broad range of high-end properties in the state, from estates on large swaths of land spread out over acres to top-of-the-line condominiums offering modern contemporary living.
Why luxury properties in Oregon have changed dramatically
In recent years, Oregon’s luxury properties have undergone a significant transformation, with many factors taking the helm as reasons why the state’s lucrative housing market has shifted.
Oregon’s economy has grown steadily over the last 20 years. With a gross domestic product (GDP) that has risen annually by 2.2% over the last five years, the state is now ranked 11th out of all US states in GDP growth, and with industries like healthcare, insurance, electronic parts, and equipment wholesaling at the forefront in the state, it does not look like this trend is going anywhere soon.
Many homeowners are eager to reap the benefits of a strong economy and seek luxury real estate in the state’s most desirable areas, including Portland.
Real estate prices rise
The rise of real estate prices has ebbed and flowed over the last 20 years. However, recent increases over the last several years are only expected to continue. Even in spite of interest rate rises over the last year, Oregon’s luxury real estate market, particularly Portland, is thriving, with many homeowners and investors seeing it as a viable option for long-term wealth. The ongoing housing shortages in Oregon have only made the demand for properties that much higher, including Bethany properties.
Population growth may be the most obvious issue related to the dramatic growth and shift in Oregon luxury properties. In recent studies, Oregon has become the second most popular state to move to, with Vermont taking the number one spot. There are many reasons for the influx in population, with one being the state’s available land and space. With more land available, many luxury real estate developers see the extra space as a way to build extravagant properties with lush backyards, outside kitchens, and stunning in-ground pools.
Oregon is teeming with astonishing natural beauty. The state’s diverse flora and fauna, miles and miles of well-maintained parks and trails, and natural wonders have made the area the perfect destination for luxury homeowners seeking a tranquil setting in nature.
The city of Bend has become a vacation getaway for residents of Portland, with its rich art community and mindblowing natural gems like Smith Rock. Willamette Valley has become home to dozens upon dozens of wineries for Portlanders to visit, just a short drive from the city.
Recently, Portland has seen a rise in luxury developments, indicating that even while the housing market remains tight, the demand for luxury housing is alive and well. Many residents expect a certain level of elegance and class in the area’s real estate offerings and are willing to pay for it.
Contact The Dirk Hmura Team today
As a native Oregonian, Dirk Hmura at The Dirk Hmura Team is committed to keeping his state on the map as a primary destination for luxury real estate. With years of real estate and business expertise behind him, he has grown a team of top-quality realtors dedicated to exceeding client expectations.
To begin your search for Cedar Mill homes for sale or luxury real estate in the Portland area, contact Dirk Hmura and his team today. They have a comprehensive inventory of luxury properties available at your disposal and are ready to help you find your new home.