Market Profile

• Population: 131,496
• Median Household Income: $73,809
• Unemployment Rate: 4.2%
• Job Growth: +1.5% annually
• Population Growth: +0.8% annually

Economic Drivers

• Manufacturing
• Agriculture
• Healthcare
• Retail Trade
• Government
• Education

Market Trends

• Median Home Price: $470,000 (+8.1% YoY, up)
• Average Rent: $1,800/mo (+4.2% YoY, up)
• Cap Rates: 5.5-6.5% (Stable, stable)

Tax Considerations

• Property Tax Rate: 0.82%
• Transfer Tax Rate: No state transfer tax
• Assessment Method: Assessed Value (Oregon Property Tax System)
• Opportunity Zones: 2 designated zones

Neighborhoods

Downtown Albany

Historic downtown core with county government, revitalization efforts, and opportunity zone benefits

• Median Price: $425,000
• Price Growth: +7.2% YoY
• Rental Yield: 6.1%
• Days on Market: 48 days

Investment Thesis: Stable rental demand from government workers and downtown employees, opportunity zone benefits, and ongoing revitalization, though limited urban amenities compared to larger cities.

North Albany

Newer residential area with family-friendly neighborhoods and proximity to employment centers

• Median Price: $540,000
• Price Growth: +8.0% YoY
• Rental Yield: 5.4%
• Days on Market: 42 days

Investment Thesis: Strong family rental demand, newer housing stock, and proximity to manufacturing employment, though higher entry costs and suburban competition.

Lebanon

Secondary city with affordable housing options and proximity to recreational areas

• Median Price: $385,000
• Price Growth: +6.8% YoY
• Rental Yield: 6.8%
• Days on Market: 62 days

Investment Thesis: More affordable entry points with stable employment from local industries and outdoor recreation appeal, though smaller rental market and limited amenities.

Frequently Asked Questions

What makes Albany-Lebanon attractive for 1031 exchanges?

The Albany-Lebanon area offers stable cap rates of 5.5-6.5%, low property taxes at 0.82%, strong manufacturing employment base, and central Willamette Valley location. The market provides stability with lower costs than major Oregon metros.

How does the rare metals industry impact the local economy?

Wah Chang Corporation and other rare metals manufacturers provide stable, high-paying employment that supports the local housing market. This specialized industry creates consistent rental demand and economic stability, though it also creates some economic concentration risk.

Are there opportunity zone benefits in the Albany area?

Yes, the region has 2 designated Opportunity Zones in downtown Albany and Lebanon. Oregon has 86 total opportunity zones, offering potential tax benefits for qualifying investments in economically disadvantaged areas.

How do property taxes compare to other Oregon markets?

Property taxes are favorable at 0.82%, below both the state average of 0.87% and national average of 1.02%. This provides better cash flow for investors compared to higher-tax Oregon counties like Washington or Multnomah.

What are the transportation and location advantages?

Albany is centrally located in the Willamette Valley with easy access to Portland (70 miles), Salem (26 miles), and Corvallis (20 miles). However, the area is car-dependent with limited public transportation, which affects tenant demographics and rental demand patterns.

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This information is for educational purposes only and is not legal or tax advice. Consult with qualified professionals regarding your specific situation.

More Oregon metro guides

See the full Oregon 1031 exchange guide for state tax rules, deadlines, and clawback status.

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