PORTLAND, Ore. (KOIN) — Portland’s economy has been booming the last couple of years — with job growth going up and unemployment going way down. But the economy for the metro area is starting to show signs of slowing, according to experts.
Tom Potiowsky — director of the Northwest Economic Research Center at Portland State University — delivered the economic forecast for the area Thursday morning.
According to Potiowsky, Portland isn’t heading for a recession, but there are definitely signs for a “slowing growth” moving forward.
The last 2 Oregon job reports showed job losses and the same was true for Portland in August.
“We’re starting to reach full employment in the area, and it’s just tougher to grow at the same fast rate that we saw 2 or 3 years ago,” Potiowsky said.
However, Potiowsky said there is no reason to panic.
Housing prices are starting to slow from their astronomical growth, which is a good sign because Portland houses have probably become overvalued.
“You’re starting to bump up to that affordability aspect and so prices are starting to settle down,” Potiowsky said. “This is an adjustment that we like to see if we start to get a little bit overvalued.”
Even if you aren’t looking to buy a house, you may have a little extra cash to spend. The forecast is calling for a 4.4% average jump over the next 5 years. While that average is less than what it was the previous 5 years, it’s still good from a historical perspective.