Portland Multifamily Market Report

Demand recovers in tandem with net in-migration. Last year, property metrics reversed course from record trends; yet, this rebalancing is bolstering Portland’s status as an option for relocating from other major Pacific Coast markets. In 2023, Seattle’s rent growth outpaces the Rose City for the first time since 2019, causing the gap between the two metros’ average effective rates to widen to a record of nearly $400 per month. Meanwhile, rates in Portland fall more than $800 below the mean among major Northern California markets. Oregon also omits the use of an excise tax, making living expenses in Portland comparatively affordable. The regionally low cost-of-living here — as well as continued hiring throughout 2023 — stokes positive net in-migration, as over 11,000 new residents relocate this year. This trend backstops renter demand, returning net absorption to the black after falling negative in 2022. This helps soften the rise in vacancy from continued construction in 2023.