— By Josh McDonald, Executive Vice President, CBRE’s Institutional Multifamily Investment Services —
Recent data points to positive trends in Portland’s multifamily leasing market heading into the summer months. The rebound in absorption and declining new supply — primarily driven by an active suburban renter base — highlight the resilience and growth potential of the local rental market.
The positive leasing trends in Portland have contributed to create an increase in recent investment sales opportunities. Strong leasing performance, as indicated by elevated absorption rates and demand for rental properties, often translates into positive investor sentiment and heightened investment activity in the multifamily sector. This may signal to investors that the market has opportunities for solid returns and growth potential.
The green shoots in seasonal leasing are weighted in the suburbs with demand accounting for more than 65 percent of the net change in occupied units, emphasizing a strong preference for suburban living. With more than 3,100 units absorbed in 2024 already, the year is on track to surpass the full-year totals for both 2022 and 2023. This may potentially exceeding the 10-year average as well, according to CoStar.
Denser urban areas and the Central Business District also experienced an increase in occupied units, indicating broader leasing activity across various parts of the city. As the return to core renter trend continues, we expect to see rents increase in both the near- and long-term as Portland continues to experience a decline in multifamily building permits. These permits are below the pre-COVID norms seen between 2015 and 2019.
Overall, the data suggests a robust multifamily leasing market in Portland, with increasing demand across various areas. This growth trend — if sustained — could lead to healthy performance for the year, potentially surpassing previous benchmarks and indicating a positive outlook for the local rental market and the metropolitan area.