Portland Multifamily Market
2024 Investment Forecast
Nationally-Discounted Class A Rent Props
Up Demand in Vancouver and the CBD
Economic recalibration gives rentals strong outlook. Driven by a growing technology sector, the mean effective Class A rent in Portland kept in line with the U.S. benchmark for most of the decade leading up to 2020. However, entering 2024, the rate stood nearly 20 percent lower than the national average at roughly $1,900 per month, after changes in office use led many affluent renters to relocate to other nearby metros. This shift has required many operators of Class A properties to ease rents, effectively improving Portland’s ability to attract a broader spectrum of household incomes. Greater affordability, in tandem with continued professional services and healthcare-related hiring in 2024, is expected to support a rate of apartment absorption that is double the long-term mean of 2,500 units per annum. Vancouver, specifically, may achieve one of the highest net absorption totals among major West Coast submarkets for the second year in a row. The absence of a personal income tax in Washington state is especially beneficial for renters who want to protect their budgets from persistent inflation. At the same time, Downtown Portland has also become a more cost-effective option for tenants. The gap between the CBD’s Class A average effective rate and the sector’s mean marketwide rent thinned from $110 per month in 2019, to under $50 at the end of last year. Deliveries coming online in both areas in the near-term should benefit from these factors. In 2024, Vancouver and Central Portland are slated to add roughly 1,300 units each.