Spring 2024 Apartment Report from Multifamily NW

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Multifamily NW, the largest association of housing providers and rental housing professionals in Oregon, has published its latest Apartment Report — offering insights into the current status of the rental market in various regions of the state.

The report reveals a marked increase in vacancies since the fall report, with rates climbing from 5.47% to 6.17%. While some areas such as Aloha, Tigard, Tualatin, and Sherwood continue to maintain sub-5% vacancy rates, the urban core, particularly NW and Downtown Portland, is experiencing higher vacancy rates, with NW at 8.7% and Downtown Portland at 7.48%. Studios in Downtown Portland have surpassed a 12% vacancy rate, while St. Johns has emerged as the market with the highest vacancy, exceeding 9%.

Despite these changes, rents per square foot have remained virtually unchanged over the last six months for the more than 48,000 units covered by the survey. The average rent, which stood at $2.04/sq ft in the Fall 2023 Apartment Report, has marginally increased to $2.06/sq ft.

“Overall, this latest report is good news for Oregon renters,” said Gary Fisher, executive director of Multifamily NW. “Rents have remained very stable for nearly a year now, and with increasing vacancies, there’s more pressure on those rates to stay flat. However, the high vacancy rates in the state’s urban cores are reflective of a larger problem — namely, that growth is concentrated almost solely in Oregon’s suburbs — which has ripple effects on not only the housing industry, but the entire statewide economy.”

The latest Apartment Report also introduces new areas to the survey, including Salem/Keizer, Corvallis/Albany, Forest Grove/Cornelius, and McMinnville/Newberg. These outlying markets have witnessed a notable increase in sales activity, reflecting a shift in investor demand from Portland proper to these areas. Of the new markets surveyed, McMinnville/Newberg boasts the lowest vacancy rate at just 3.36%, while Bend/Redmond hovers slightly above 8%.

The Spring 2024 report debuted on Tuesday, April 9th at the Apartment Report Luncheon at the Oregon Convention Center. The Speakers Panel included updates on multifamily sales, affordable housing & homelessness, state and local economy, a recent legislative update and overview of city of Portland housing policies and pending charter reform. Panelists' presentations are linked below.

Mr. Josh Lehner, Senior Economist, Oregon Office of Economic Analysis

Topic: Economic Forecast

Mr. Patrick O. Barry, State Certified General Appraiser at Barry & Associate

Topic: Multifamily Construction & Market Values

Mr. Rob Justus, Entrepreneur and agitator

Topic: Homelessness and Housing

Mr. Marcel Gesmundo, Founder/Partner of Andor Law

Topic: Housing Regulations

Portland City Commissioner Rene Gonzalez

Topic: Portland Housing Policy & Charter Reform

MC: Ms. Andie Smith, Senior Asset Manager, Pacific Urban Investors