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Market Report

Portland Multifamily Market Report

2Q 2022

Regional Affordability Drives In-Migration, Spurring Record Levels of Leasing and Investment Activity

Renter demand returns to the CBD. Effective rents roughly 20 percent below monthly averages in major markets nearby, like Seattle and the Bay Area, is driving robust in-migration to the metro. As a result, over 10,000 units were absorbed in 2021, slicing availability to the lowest rate in over two decades entering this year. Renters are still showing a preference for apartments in the market’s suburbs, highlighted by sub-2 percent vacancy rates in Vancouver, East Beaverton and Southwest Portland-Tigard. At the same time, demand is returning to the urban core, evident by the 350-basis-point vacancy plunge recorded last year, lowering the rate 160 basis points below the pre-COVID-19 level. The metro is well positioned to sustain this momentum, as robust population growth and rapidly rising home prices continue to stimulate apartment demand in the near term.
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