Rent Growth Slows, Deliveries Shrink
Rent movement in Portland was mostly negative in 2023, with the average asking rent down 0.7% on a trailing three-month basis through December, to $1,701, according to the latest Yardi Matrix Portland multifamily market report. Meanwhile, the U.S. rate continued its decrease, as well, down 0.3%. The average occupancy rate in stabilized assets stood at 94.6% as of December, a 60-basis-point decrease year-over-year as of November. While the Lifestyle segment declined 70 basis points, to 94.1%, the Renter-by-Necessity segment saw a 50-basis-point decrease, to 95.2%.
The metro added 25,000 net jobs in the 12 months ending in October, up 2.7% and 40 basis points above the U.S. rate. Portland registered its highest employment growth of 9.9% in the mining, logging and construction sector, which added 8,400 new jobs. The metro’s unemployment rate stood at 3.4%, 30 basis points lower than the U.S. average, according to preliminary data from the Bureau of Labor Statistics. The leisure and hospitality sector could get a boost from the expansion of the Portland International Airport. The $2 billion project is scheduled for an initial opening this year.
Developers had 14,198 units under construction as of December. Of these, 6,253 units broke ground in 2023, a 5.5% decrease compared to 2022’s construction starts. Portland recorded $399 million in multifamily transactions by the end of the year. While this represented a 75% decrease, it aligned with the broader trend of slowing sales activity.
Read the full Yardi Matrix Portland Multifamily Market Report: February 2024
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