Vacancy? What Now

Economic Uncertainty

The current real estate market in the Portland Metro area poses significant challenges, particularly for the multifamily sector. Demand has been a noticeable decrease due to high inflation, economic uncertainty, and the anticipated addition of a substantial number of new units to the market within the next 18 months. These factors will likely result in higher vacancy rates and downward pressure on rent growth.

Portland Market

According to reports for the fourth quarter of 2023, the net absorption rate for the trailing 12 months is at 2,600 units, significantly lower than the peak performance recorded in the third quarter of 2021, which was 11,000 units. Over the past year, approximately 7,100 new units have been added to the market, leading to a rise in vacancy rates to 7.1%.

As a result, the rental growth in the entire Portland metro area has fallen to -2.4%, the worst performance recorded since the Great Recession. Most submarkets in the Portland metro area struggle to find tenants, leading to rent growth in higher-cost neighborhoods like Hillsboro.

Building Chemistry Can Help!

Despite the challenges, Building Chemistry is committed to navigating the financial needs of our clients and fulfilling our obligations with tenacity. We can help increase your revenue and ensure the success of your asset. Call us today to learn more!