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Market Report

Portland Multifamily Market

2Q 2023

Expense-Reducing Measures Spur Renter
Inflow from More-Costly Western Metros

Demand recovers in tandem with migration. Last year, property metrics reversed course from record-setting trends; yet, this rebalancing is bolstering Portland’s status as an option for relocating households from other Pacific Coast markets. In 2023, Seattle-Tacoma’s rent growth will outpace the Rose City for the first time since 2019, causing the gap between the two metros’ average effective rates to widen to a record of nearly $400 per month. Meanwhile, rates in Portland fall more than $800 below most major Northern California markets. Oregon also omits the use of an excise tax, making living expenses in the metro comparatively affordable. The regionally low cost-of-living here — as well as continued hiring throughout 2023 — stokes net in-migration, as over 11,000 new residents relocate to Portland this year. This trend backstops renter demand, returning net absorption to positive territory after falling negative in 2022. This helps soften the rise in vacancy from sustained construction in 2023. 

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