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Market Report

Portland Multifamily Investment Forecast

2022 Outlook

Newcomers to Portland Strengthen Rental Demand;
Regionally High Yields Drive Sales Activity

Strong population growth stimulates leasing in the apartment sector. Portland offers a less dense, more affordable environment for residents looking to relocate from other higher-cost West Coast markets. Robust in-migration spurred record levels of demand for rentals last year, with net absorption reaching a 20-year high in 2021. Projections for 2022 suggest this momentum will carry on. The metro will continue to add jobs and attract new residents at a pace well above the national average. Additionally, housing shortages across the metro have resulted in single-family home prices surging to over six times the median household income, above the same ratio for the nation as a whole. This will likely delay homeownership for prospective first-time buyers, further bolstering rental demand in the near term. While developers ramped up multifamily construction in each of the past 10 years, deliveries are anticipated to decline in 2022, falling below the trailing-five-year average. Reduced construction activity in Portland will steer more renters to existing properties, allowing vacancy to contract near a historical low this year.
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