Portland’s Year-End Vacancy Rate from Census, Plus All the Expert Forecasts on Vacancy & Rent Growth for 2014

Portland’s Year-End Vacancy Rate from Census, Plus All the Expert Forecasts on Vacancy & Rent Growth for 2014


The U.S. Census Bureau is reporting that the
Portland/Vancouver /Beaverton vacancy rate rose from 2.1 percent in Q2 and
Q3 2013 to 4.6 percent in the fourth quarter, a half percent below where it ended up atthe end of 2012. 
The Portland metro area tied with Rochester NY for the 14th
lowest vacancy rates among the top 75 U.S. Metropolitan Statistical Areas

(MSAs). This estimate has moved above the 3.11 percent vacancy rate reported by
the MultifamilyNW Association in its Fall, 2013 survey.
Seattle-Tacoma-Bellevue, WA ranked #11 with a Q4 2013
vacancy estimate of 4.0 percent, down 0.4 percent from the prior quarter.

The nation’s 15 lowest vacancy rates were as follows:

  • Poughkeepsie-Newburgh-Middletown, NJ – 0.0%
  • Springfield, MA – 0.9%
  • Oxnard-Thousand Oaks-Ventura, CA – 1.9%
  • San Jose-Sunnyvale-Santa Clara, CA – 2.7%
  • San Francisco-Oakland-Fremont, CA – 3.2%
  • Albany-Schenectady-Troy, NY – 3.4%
  • Pittsburgh, PA – 3.5%
  • Worcester, MA – 3.7%
  • Toledo, OH – 3.8%
  • Raleigh-Cary, NC – 3.9
  • Seattle-Tacoma-Bellevue, WA – 4.0%
  • Milwaukee-Waukesha-West Allis, WI – 4.2%
  • San Diego-Carlsbad-San Marcos – 4.4%
  • Portland-Vancouver-Beaverton, OR-WA – 4.6% (tie)
  • Rochester, NY – 4.6% (tie)
  • Baton Rouge, LA 
    – 4.7%
The
MSA’s with the five highest vacancy rates were as follows:
  • Las Vegas-Paradise, NV – 13.5%
  • Birmingham-Hoover, AL – 13.8%
  • Austin-Round Rock, TX – 13.9%
  • Tulsa, OK – 14.1%
  • Memphis, TN-AR-MS – 15.8%
Average
national rental vacancy rates for Q4 2013 was 8.2% and was 0.5% lower than a
year earlier and 0.1% lower than Q3 2013. The rental vacancy rate has been
falling fairly consistently since 2009. It is at its lowest level since Q1 2001
and far below the Q3 2009 high water mark of 11.1%.

The Census Bureau statistics compare to private research firms Axiometrics’ and
Red Capital Research (RCR) as follows:



Portland
Metro Vacancy Rate – Forecasts
Red
Capital Research
Axiometrics
Reis*
Multifamily
NW
US
Census
2012
2.3%
4.9%
3.4%
3.7%
Q4 5.2%
2013
2.5%
4.3%
3.0%
3.11%
Q4 4.6%
2014
2.8%F
5.1%F
3.2%F
 
*4 Quarters, averaged
F = Forecast                 
Portland Metro effective rent growth
estimates & forecasts
Effective
Rent Growth – Forecast
Red
Capital Research
Axiometrics
Reis
MPF

Research
2012
5.0%
4.0%
3.8%
4.4%
2013
3.3%
5.7%
3.7%
6.6%
2014
3.4%F
3.4F
3.6%F
4.8%F

F=Forecast
HFO Investment Real Estate specializes in multifamily brokerage sales and advisory services for commercial real estate investors and apartment owners throughout Oregon and Washington. Build your legacy at http://www.hfore.com