Portland’s Solid Rental Market Accelerates Recovery
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%, 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% year-over-year, not far behind the 10.3% U.S. rate.
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%. As of July, unemployment stood at 4.6% in metro Portland—the figure was below both the 5.2% Oregon rate and the 5.4% national rate recorded in July. As of August, statewide unemployment was 4.9%, while the national figure slid to 5.2%.
Portland had 7,983 units under construction as of August, 76% of which are in upscale communities. Developers added 3,184 units to inventory year-to-date through August, equal to 1.9% 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).
Read the full Martix Multifamily Portland Report-Fall 2021