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A Year of Transition:’ Portland Apartment Market Shows Sign of Stabilization [10/22/24]
Portland Business Journal | Sara Edwards | Oct. 22, 2024
The Portland Business Journal turned to HFO Investment Real Estate founding partner Greg Frick for an expert read on a Multifamily NW report showing the metro apartment market starting to stabilize. Vacancy has decreased from 6.17% to 4.49%, and average rent per square foot eased slightly to $2.04. Frick attributed the firmer vacancy picture to demand catching up with earlier overbuilding. “We’re absorbing some of the new units that were built,” he said. He cited a “big bubble of new construction” from 2017 working its way through the market. Meanwhile, there is thinner new supply.
Frick was less upbeat on the road ahead for investors and operators. He pointed to high materials costs, long permitting timelines and soaring operating expenses. “It’s still a tough road to invest in this market,” he said. Additionally, he added that recovery hinges on the office and industrial sectors, since “if we have demand on that side, apartments will follow.” On rising insurance, tax and utility costs, he warned, “until there’s a handle on that, it’s going to make the financing side very difficult.”
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