PORTLAND, Ore. (KOIN) — A new report from Multifamily NW revealed that Portland rental prices have either stabilized or decreased.
During the past 5 years, there has been a 2% vacancy rate in Portland apartments, making rent skyrocket. Now, the vacancy rate is up 4-5%, meaning rent rates could soon drop or level out.
Local economist Jerry Johnson said it all comes down to supply and demand. He said while the cost is stabilizing now, it’s still up over the past 5 years. Over time, the market will take care of it.
“What’s happening is we have a lot of new supply,” Johnson said. “It’s changing the market clearing price. When we have a higher vacancy rate, we tend to see less price power.”
That means rent cost should go down, but most renters won’t notice right away.
While the Portland core is experiencing the highest vacancy rates because of new apartments, the rest of the metro area is getting better too, but may take a little longer to catch up.
“We do think some of the suburban communities are probably gonna have a little more rent growth left in there because they haven’t seen as much supply as the downtown area,” Johnson said.