Portland Multifamily Report – February 2023

Mirroring national trends, the city's multifamily market cools off.

Portland rent evolution, click to enlarge

Portland rent evolution, click to enlarge

The softening trend that seized the national multifamily market at the start of fall 2022 also engulfed Portland, but the metro’s performance remained healthy. While short-term rent growth turned negative—down 0.2 percent on a trailing three-month basis in December and on par with the national rate—annual rent growth posted a solid 7.2 percent increase, 100 basis points above the U.S. average. The occupancy rate in stabilized properties signaled a tight rental market, settling at 95.7 percent in November following a 40-basis-point dip over the course of one year.

READ THE FULL YARDI MATRIX REPORT

Portland sales volume and number of properties sold, click to enlarge

Portland sales volume and number of properties sold, click to enlarge

Portland’s unemployment rate rose to 4.0 percent as of November, trailing the U.S. average (3.6 percent) but ahead of the state (4.4 percent), according to data from the Bureau of Labor Statistics. The employment market expanded 5.5 percent in the 12 months ending in October, surpassing the U.S. figure by 140 basis points. In September, the metro recovered all the jobs lost during the pandemic, but recovery has been uneven, with sectors such as leisure and hospitality still lagging pre-pandemic levels. Still, the sector trailed only education and health services for jobs added.

Portland. Photo by DaveAlan/iStockphoto.com

Portland. Photo by DaveAlan/iStockphoto.com

Developers delivered 4,973 units in 2022 and had 11,628 units underway. Interesting prospects come from the number of construction starts in 2022, which was more than double the volume of the prior year. Meanwhile, investment volume amounted to $1.6 billion, with the average price per unit up 7.9 percent to $287,557.

Read the full Yardi Matrix report.

You May Also Like