The Portland Business Journal ran a special edition on residential real estate in last week’s print edition. I was asked for my thoughts on the market, which are similar to our previous work, and reproduced below. If you can get a copy, there are additional comments and insights from local economists and housing industry experts.

First, prices are booming and and the median sale price, as reported by RMLS, is effectively back to an all-time high. Rents have never been higher. However these gains are driven by the fact that housing demand and household formation have returned to normal but the number of homes for sale or rent, both existing and new, have not. From this high level perspective it’s simple supply and demand. Demand is up considerably from the depths of the Great Recession while housing inventory is not. That’s a clear recipe for rising prices.

While new construction…