Portland Multifamily Market
Clark County’s Residential Growth Warrants New Supply;
Mild Deliveries Benefit Western Suburbs
Robust household formation anchors occupancy in Vancouver. While vacancy has continued to advance across most of the metro over the first half of 2023, there are signs that rises will slow near-term. The number of jobs added this year is expected to double the metro’s long-term average of 16,000 roles. Strong hiring has already helped spur the absorption of over 820 units on net during the second quarter, reversing the trend of net relinquishments over the preceding 12 months. New supply in 2023 is also generally well-positioned, as roughly 45 percent of this year’s deliveries are slated for Vancouver. Here, household formation has been higher than the rest of the metro, keeping the local vacancy rate lower than most submarkets, at 4.2 percent in June. This trend should continue as the local household count is expected to grow by 9 percent over the next five years, with new formations helping fill additions to rental stock.