Portland Multifamily Report – Fall 2021
The city is matching the unprecedented level of national rent growth.
Portland rent evolution, click to enlarge
The multifamily industry’s ongoing momentum continued its upward trajectory, and although Portland’s overall recovery is expected to be lengthier, the metro’s housing market is exhibiting strength. As of August, Portland rents improved by 2.0 percent, to $1,604, on a trailing three-month (T3) basis, above the $1,539 U.S. average. The metro’s single-family rental sector is also on the right track, with rates up 7.8 percent year-over-year, not far behind the 10.3 percent U.S. rate.
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Portland sales volume and number of properties sold, click to enlarge
In the 12 months ending in June, Portland gained 69,900 net jobs. While employment gains have improved in the metro, job growth was still at -0.7 in June, 60 basis points below the U.S. figure. Leisure and hospitality led gains with the addition of 18,600 jobs, up 23.6 percent. As of July, unemployment stood at 4.6 percent in metro Portland—the figure was below both the 5.2 percent Oregon rate and the 5.4 percent national rate recorded in July. As of August, statewide unemployment was 4.9 percent, while the national figure slid to 5.2 percent.
Portland had 7,983 units under construction as of August, 76 percent of which are in upscale communities. Developers added 3,184 units to inventory year-to-date through August, equal to 1.9 percent of total stock and 60 basis points above the U.S. figure. Meanwhile, investment sales amounted to $680 million, slightly exceeding the sales volume recorded in the same interval last year ($630 million).
