Portland Multifamily Report – June 2023
Fundamentals are mostly sound, but economic woes are taking a toll.
Portland’s multifamily sector showed resilience, with several metrics at or around national levels. After a few months of negative rent movement, rates across the metro remained flat, at $1,759, on a trailing three-month basis. Meanwhile, the national average inched up 0.2 percent, to $1,709. Occupancy in stabilized assets dropped to 95.0 percent, on par with the U.S. rate.
Unemployment was at 3.6 percent as of March, according to preliminary data from the Bureau of Labor Statistics. While this figure was just 10 basis points above the U.S. figure, it outperformed the state by 80 basis points. Portland’s employment market grew by 3.7 percent year-over-year as of February, recording economic growth slightly above the national level. The metro added 35,100 jobs, with leisure and hospitality leading gains. On a positive note for the sector, Portland’s first luxury hotel is expected to open this summer. The Ritz-Carlton Portland will also be the Pacific Northwest’s first facility under the brand.
Portland multifamily developers focused on Lifestyle projects, as roughly two-thirds of developments under construction are slated to add to the segment’s inventory. Overall, as of April the metro had 11,949 units underway, with an additional 32,900 units in the planning and permitting stages. Meanwhile, two of the three sales completed in 2023 involved RBN properties, as sales slowed down significantly due to the severely increased cost of capital.