Oregon landlords can raise rent as much as 14.6% next year under the state’s new rent-control law, but landlords are unlikely to increase rents that much.
This statewide cap applies to housing that’s at least 15 years old. Newer rentals are not included.
Meanwhile, Gov. Kate Brown said in a statement it may be time to review the state’s rent-control law next year. Brown signed the rent-control bill into law in 2019, the first of its kind in the nation. It caps rent increases annually at 7 percent, plus the average consumer price index measure of inflation.
In response to the new number, Brown’s office put out a statement saying in part, “The governor is deeply concerned about the maximum rental increases that will be allowed under Oregon law in 2023, and she urges the legislature to prioritize action to mitigate future increases.
“In 2019, the Legislature established the formula for our current maximum annual rent increases through Senate Bill 608, tying allowable increases to changes in key markers of inflation. While this was the right policy move at the time, when rent increases were not a primary factor driving measures of inflation (and CPI was under 2 percent), with today’s inflation rates it makes sense to reexamine state law.
“Because the limit announced does not take effect until 2023, the governor believes the legislature can and should take this up during the 2023 session. It’s important for Oregon renters and landlords to note that the maximum allowable increase announced today does not take effect until 2023. For the remainder of the calendar year, landlords are still bound to the 2022 maximum increase amount of 9.9 percent,” the governor said in the statement.
Landlords will not be able to raise rent that much
“I’m sure it sounds like, to a lot of people, that’s a big hike,” said Christian Bryant, president of the Portland Area Rental Owners Association, to kgw.com. He also teaches people the rental business.
Bryant said he understands the concern but does not believe most landlords who could raise rent 14.6 percent next year will do so.
But he added, “The way it’s set up right now is if you’re a landlord, you’re a business. And if your costs go up, (like) at a restaurant or the Home Depot, they charge the end user more.”
The Oregon Office of Economic Analysis is responsible for calculating and publishing, by September 30 of each year, the maximum annual rent increase percentage allowed by statute.