Portland Multifamily Report – June 2024
Asking rents, occupancy and transactions still show a sluggish market.
Portland advertised asking rates recorded a 0.4 percent increase on a trailing three-month basis through April, leading national figures by just 10 basis points. However, on a long-term basis, the national average came out on top. On an annual basis, advertised rents were down 1.5 percent, while the U.S. average increased by 0.7 percent. As of March, the average occupancy rate in stabilized assets stood at 94.4 percent, marking a 50-basis-point annual decline.
Based on Bureau of Labor Statistics data for February, Portland’s unemployment rate remained unchanged month-over-month, at 4.7 percent. The figure was 80 basis points higher than the national average. Portland also lost 18,500 net jobs in the 12 months ending in February. Only two sectors registered gains, while professional and business services suffered the most significant losses. The Montgomery Park Area Plan project aims to transform an underutilized area of the metro into a mixed-use hub, to boost the local economy. The transit-oriented neighborhood would provide employment opportunities and at least 200 affordable housing units.
Portland developers delivered 1,664 units in the first four months of the year. Construction activity remained strong with nearly 12,500 units under construction. Investment activity saw a bump, as sales through April totaled $181 million. This positions Portland as one of the major metros to record stronger sales in the first third of the year compared to the same period in 2023, when $87 million traded.
