After hearing anecdotal stories of Silicon Valley middle level executives unable to afford housing that would be reasonably available to them in almost any other part of the country, this article from CNBC comes along (See article here). This article seems to confirm the stories I have been hearing from other real estate agents as well as prospects I have had the opportunity to talk with from the Bay Area. Add to this congestion, taxation, and water shortages and the story becomes more compelling.
As the Portland/Vancouver market is rather small, it would not take much in-migration to make a considerable difference to our current real estate values, especially when one considers the effect of urban growth boundaries on land prices when population growth occurs. If the trends described in this article are true, we could be in for a sustained run-up in real estate values in all product types in our market. Portland already has a reputation as a great place to live and has been attractive for highly educated younger people to migrate for years. Having a solid population of residents educated and skilled in science, technology, engineering, and math (STEM) makes this area attractive to both technology companies and entrapreuners looking to start technology based companies. This could be quite a ride!