Apartment Market Trends for Oregon and SW Washington
Multifamily NW Apartment Report Highlights
Portland Metro Area Rental Market Trends: Vacancy, Market Rents
Click here to download the Spring 2025 Multifamily NW Apartment Report.
The study focuses on apartment market trends for Oregon and SW Washington, including rental prices, vacancy rates, and economic trends in the Portland Metro Area for the spring of 2025. Multifamily NW compiled this data from 605 properties totaling 43,295 units. This summary also contains data from reports submitted by Barry & Associates, the Oregon Employment Department, and additional data from HFO Research.
- The overall vacancy rate in the Portland Metro Area has declined from 6.17% to 5.91%, a quarter-point improvement from Spring 2024.
- Studio apartments have the highest vacancy rate at 7.91%, while two-bedroom townhouse units have the lowest at 4.14%.
- Eugene’s vacancy rate is notably low at 3.56%, while Bend improved from 8.05% to 6.02%.
- The average market vacancy rate in Downtown Portland decreased by 30% to 5.32% compared to Spring 2024.
- Average year-over-year market rents increased from $2.06 to $2.07 PSF.
- In Spring 2025, studio apartments in the Portland Metro Area average $1,110, down from $1,272 in Spring 2024.
- One-bedroom apartments have an average rent of $1,332, slightly decreasing from $1,376 the previous year.
- Two-bedroom units average $1,401 for 1 bath and $1,687 for 2 baths, showing minimal changes from Spring 2024.
- Three-bedroom apartments average $1,543 for 1 bath and $1,861 for 2 baths, with slight decreases in rent.
- The average rent per square foot in Downtown Portland is $2.56, down 10.5% from the previous year.
Portland Metro Apartment Market Trends for Sales Volume, Price Per Unit, Cap Rates, Employment & Expenses
- Sales volume for 5+ unit buildings dropped from $3.3 billion in 2022 to $953 million in 2023, a 71% decline. Most recently, sales volume in 2024 reached a total of 117 transactions valued at $1.65 billion, pushing sales up 73% from 2023 (67 total transactions).
- The median price per unit dropped to approximately $173,125 in 2024, a 12.6% decrease from 2023.
- Cap rates have risen from 4.97% in 2022 to 5.88% over the last 15 months, resulting in a 14% decrease in value since then.
- As of February, Employment in Portland has declined by 0.5% (-5,800 jobs) since early 2023 due to job losses across most sectors, except healthcare and government.
- From 2021 to 2024, asking rents increased by only 4.5%, while expenses surged by 59%.
Construction
- Approximately 3,900 apartment units are under construction, the lowest level since 2011-2012. (CoStar)
- CoStar projects annual deliveries to decrease to 2,500 units in 2025 and 2,400 units in 2026.
- New apartment construction is at its lowest level in over a decade, which may help stabilize the market.
Investor Sentiment
- Despite current challenges, there are signs of recovery, with increased investor interest noted in the last six months.
- The overall sentiment suggests that while recovery is slow, investors are beginning to see potential opportunities in the long term.
Click here to download the Spring 2025 Multifamily NW Apartment Report.