The maximum rent increase allowed in Oregon for 2023 will be 14.6%. That was announced Tuesday by the Oregon Department of Administrative Services (DAS) Office of Economic Analysis (OEA).
It’s the largest such cap increase since 2000.
Under the passage of Senate Bill 608 in 2019, DAS is required to post the maximum annual rent increase percentage that allowed by statute for the following year. That number must be announced by Sept. 30.
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According to DAS, the OEA calculates the amount as 7% plus the Consumer Price Index for All Urban Consumers in the West Region, as is published by the Bureau of Labor Statistics.
To calculate the 2023 number, CPI is 7.6%. Another 7% is tacked on to come up with the maximum cap.
Here is how much more renters could pay if the maximum increase is applied:
- $1,000 per month now = $1,146
- $2,000 per month now = $2,292
- $3,000 per month now = $3,438
Not only is this the highest cap increase this century, it’s 3.6% above the previous high since 2000.
- 2000: 9.3%
- 2001: 10.2%
- 2002: 11.0%
- 2003: 9.3%
- 2004: 9.1%
- 2005: 8.9%
- 2006: 9.9%
- 2007: 10.7%
- 2008: 9.9%
- 2009: 11.0%
- 2010: 7.1%
- 2011: 8.0%
- 2012: 9.0%
- 2013: 9.5%
- 2014: 8.7%
- 2015: 8.7%
- 2016: 8.3%
- 2017: 8.6%
- 2018: 9.6%
- 2019: 10.3%
- 2020: 9.9%
- 2021: 9.2%
- 2022: 9.9%
- 2023: 14.6%
In explaining the cap increase, OEA indicated the hardship this will cause many Oregonians is not lost on them.
“While overall market rents rarely move at the maximum allowable amount, a larger increase likely strains more household budgets. In reality, renters face the options of paying the higher prices, trying to find a more affordable unit in a really tight housing market where vacancy rates are low, or taking on more roommates to spread the higher housing costs across more people.”
OEA says it expects future maximum rent increases to be lower than 2023 as inflation slows. But it expects 2024’s cap to also be somewhat elevated. That number will be announced in September 2023.
