Portland Multifamily Report – February 2024
Multifamily fundamentals slowed last year. More supply is on the way.
Rent movement in Portland was mostly negative in 2023, with the average asking rent down 0.7 percent on a trailing three-month basis through December, to $1,701. Meanwhile, the U.S. rate continued its decrease, as well, down 0.3 percent. The average occupancy rate in stabilized assets stood at 94.6 percent as of December, a 60-basis-point decrease year-over-year as of November. While the Lifestyle segment declined 70 basis points, to 94.1 percent, the Renter-by-Necessity segment saw a 50-basis-point decrease, to 95.2 percent.
The metro added 25,000 net jobs in the 12 months ending in October, up 2.7 percent and 40 basis points above the U.S. rate. Portland registered its highest employment growth of 9.9 percent in the mining, logging and construction sector, which added 8,400 new jobs. The metro’s unemployment rate stood at 3.4 percent, 30 basis points lower than the U.S. average, according to preliminary data from the Bureau of Labor Statistics. The leisure and hospitality sector could get a boost from the expansion of the Portland International Airport. The $2 billion project is scheduled for an initial opening this year.
Developers had 14,198 units under construction as of December. Of these, 6,253 units broke ground in 2023, a 5.5 percent decrease compared to 2022’s construction starts. Portland recorded $399 million in multifamily transactions by the end of the year. While this represented a 75 percent decrease, it aligned with the broader trend of slowing sales activity.
