We recently completed our annual Portland Apartment Newsletter. It provides a wrap up of the apartment market in 2020 and a forecast for 2021. The full report is here, but I've summarized a few main points below.
Market Highlights
Overall, median prices were up in 2020 though there was an obvious flight to quality with fewer sales of higher risk properties.
Suburban areas saw rents that increased slightly and stable vacancies
Urban areas experienced some rent declines and increased vacancies
Forecasts for strong rent increases in 2021 and 2022
Apartment permits down in Portland, but steady outside of Portland
While many are experiencing economic uncertainty, there are many well capitalized investors seeking multifamily properties.
$800 million in Q4 2020 apartment sales confirms Portland’s national investment appeal
Risks
Apartment completions will likely outpace demand in 2021
Shift toward home ownership and home construction
Increased regulation is making investors/developers consider locations outside OR
Slower population growth and aging cohort of prime renters; Oregon in 2020 had slightly more deaths than births for the first time ever
Reputational damage in Portland from negative national publicity
Some clear signs of increasing interest rates as of March 2021
If any questions ever come up, please don't hesitate to reach out.
