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Market Report

Portland Multifamily Market Report

3Q 2021

Urban Properties Begin Turning Corner;
Suburbs Leading the Recovery

City core past the worst, but hurdles still to come. Economic uncertainty following the onset of the health crisis contributed to renters seeking more affordable options outside of the CBD. Vacancy in the urban core rose as high as 8.2 percent in 2020, which led to a 10.6 percent average effective rent decline last year. With close to 1,000 units expected to be delivered in the CBD this year, supply additions will act as a counterbalance to increased demand. The second quarter of 2021 has shown signs of recovery, though, as stronger absorption levels caused vacancy to contract 150 basis points over the last three months. Looking longer term, Portland’s high quality of life and affordability compared with other West Coast markets should generate increased demand for downtown rentals.
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