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Good morning, Oregon Real Estate investors. Welcome to the Winter 2025 rental market briefing.
Today, we’re examining five fixed or semi-fixed expense categories that are increasing significantly this year—many of which are beyond your control.
This is not speculation. These are documented trends from 2025 renewals, county assessor projections, and our firm’s portfolio of over 2000 managed units.
Let’s begin.
Expense #1: Property Insurance – 8%+ Average Increase in 2025, More Expected
Property insurance premiums in Oregon rose an average of 8% in 2024, with some clients reporting increases exceeding 30%.
This follows three consecutive years of higher than usual increases.
For 2025, carriers have filed rate increases ranging from 15% to 28% statewide.
Action item:
Review your renewal 60 days early.
Consider higher deductibles to offset premium growth.
Avoid switching carriers mid-term—new policies often exceed current renewals.
Expense #2: HOA Dues and Special Assessments
HOA-managed properties saw monthly dues increase $50–$200 in 2025.
More critically: special assessments are now common.
These are non-negotiable, one-time capital calls. Single-family homes avoid this risk entirely.
Expense #3: Property Taxes –
Oregon county assessors have released preliminary 2025 values.
Generally limited to 3% cap
The “cap” on assessed‐value growth is ~3% per year for unchanged properties under Measure 50.
Tax bills can still increase more because of local levies, improvements, and new construction.
Recent examples show increases in the ~5% to ~12% range in some Oregon counties.
As a property manager or investor, always review the tax statement, check for new bonds/levies, and factor the tax increase into your property’s operating cost outlook.
Expense #4: Turnover and Capital Improvement Costs – Up 100%+ Since 2019
When a tenant vacates, expect turnover costs 2x higher than six years ago.
Item | 2019 Avg. | 2025 Avg. |
|---|---|---|
Carpet (1,200 sq ft) | $1,700 | $3,400 |
Interior paint (labor + materials) | $1,100 | $2,200 |
Appliance package | $2,000 | $3,700 |
Total turn cost: Now $4,000–$7,000 per unit.
These are capital expenditures—some can be depreciated immediately and others depreciated over 5–27.5 years—not immediate deductions.
Expense #5: Rent Growth vs. Expense Inflation
2025 projected rent growth: 3.5%.
Some stronger markets like: Bend/Salem/Eugene): ~ 4%-6% annual growth
Compare:
Category | 2025 Increase |
|---|---|
Insurance | +12% |
Property Tax | +3% |
HOA Dues | +10% |
Turnover Costs | +10% YoY |
Net result: Operating expenses rising 3–4x faster than revenue.
STRATEGIC RECOMMENDATIONS – How to Structure 2025 Acquisitions for Positive Cash Flow
1. Prioritize Single-Family Homes
Turnover rate: ~significantly lower - a third lower than multifamily
Avoid HOA exposure
Stronger tenant retention (avg. lease: 3.2 years)
2. Target Suburban Submarkets
Higher rent-to-value ratios
Lower vacancy
3. Acquire New or Near-New Construction (2021–2025)
Builder warranties cover:
Roof (10 yr)
HVAC (5–10 yr)
Appliances (1–3 yr)
Zero major capex for 5–7 years
Real estate is still a great asset – always important to be prudent and proactive.
