Portland Multifamily Report – Fall 2019
The metro's rental market remained healthy going into 2019’s second half, backed by steady demographic and economic growth.
Portland rent evolution, click to enlarge
Portland’s rental market remained healthy going into 2019’s second half, backed by steady demographic and economic growth. Multifamily absorption kept up the pace over the past year, with the occupancy rate in stabilized properties decreasing just 10 basis points over 12 months, to 95.7 percent as of August. This, despite a 2.7 percent growth in supply.
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Job gains continued to top national averages and the metro’s education and health services sector led growth in the 12 months ending in July (6,000 jobs), followed by leisure and hospitality (5,300 jobs). Meanwhile, Adidas is doubling its footprint in the metro by expanding its headquarters with the construction of a 400,000-square-foot extension set to add some 1,100 new positions to the existing 1,700 jobs.
Portland sales volume and number of properties sold, click to enlarge
Despite a shaky start for transactions this year, nearly $1 billion in multifamily assets traded in the first three quarters of 2019. Although the number of units delivered year-to-date through September decreased compared to last year, Portland still had 8,657 apartments under construction at the end of the third quarter. While the pipeline is slated to remain consistent, employment gains are expected to sustain absorption, keeping rent growth relatively healthy going into 2020.
