Portland’s Return to Form Now Underway
Portland’s multifamily sector is registering solid metrics across the board as we move into summer, with rent growth at 0.7% on a trailing three-month basis, just 10 basis points behind the still-overperforming national average. Rental demand continues to provide a boost to Portland’s construction sector, as continued inventory expansion has been absorbed consistently, keeping occupancy elevated, at 96.0% as of March.
The local economy is still reeling after the impact of pandemic driven restrictions, while a largely positive demographic trend turned negative in 2021. Recovery is underway, however, as Portland regained 68,000 jobs in the 12 months ending in February. Leisure and hospitality accounted for nearly half of these gains, for a 39.9% jump. Projects underway, such as the Ritz-Carltonanchored tower developed by BPM Real Estate Group in downtown Portland, indicate that confidence in the resurgence of the sector and the local economy is still reasonably high.
Following a slowdown in 2020, sales activity saw a bounce-back in 2021, as more than $2.8 billion in assets traded since the beginning of last year. Development has been high in Portland in the past five years, and the 10,677 units under construction point to further expansion in 2022 and beyond. Yardi Matrix expect rents to improve 7.6% by year-end.
Read the full Matrix Multifamily Portland Report-June 2022