Volatility Persists, Demand Strengthens
Portland is one of the coastal markets that has benefited from pandemic-induced migration patterns, with the area offering a less dense and more affordable environment to residents looking to relocate. The multifamily market responded to the dynamic, with rents up 0.7% on a trailing three-month basis through April to $1,473, outperforming the U.S. average, up 0.5% to $1,417.
The start of the health crisis marked the end of a prosperous decade for Portland, but steadily, the local economy began rebounding in the second half of 2020, pushing the unemployment rate down to 6.3% as of March 2021, according to Bureau of Labor Statistics data. The employment market was still well in the red as of February, posting an 8.4% year-over-year contraction, behind the -7.2% U.S. rate. Still, the metro’s largest sector—trade, transportation and utilities—lost just 0.8% of its workforce, and the vaccine rollout will likely speed up the recovery. The Oregon Clinic, which last year laid off more than 800 employees, has started hiring, and Intel announced plans to continue expansion during the next few years.
Last year was the decade’s second best for deliveries in Portland, followed by another 1,542 apartments that came online in the first four months of 2021. An additional 8,189 units were underway going into the second quarter. Meanwhile, sales totaled $419 million, and the price per unit increased by 16.9%, to $224,702.
Read the full Matrix Multifamily Portland Report-Summer 2021