Rent Growth: Portland Ahead of National Average
The Portland-Beaverton-Vancouver MSA outperformed the nation in terms of first quarter rent growth, according survey results released this morning by RealFacts. The March survey of 100-plus-unit communities found the national average rent was $943, 1.3% higher than the first quarter of 2009, while the average rent for the Portland-Beaverton-Vancouver MSA rose 2.2% to $839. Average occupancy in the MSA climbed 40 basis points to 93.7%.
The local average was pulled down by Portland, which posted the MSA’s lowest average occupancy at 91.9%, down 140 basis points from 1Q09, but the decrease was offset by a 1.7% increase in the average rent to $966. The highest average occupancy in the region was Lake Oswego at 95.6%, up 280 basis points year-over-year. Lake Oswego also had the highest average monthly rental rate at $1,014, down 1% from the first quarter of 2009.
Vancouver’s average occupancy was 95.1%, up 360 basis points from 1Q09 while its average rent fell 1.7% to $774. Beaverton’s average occupancy increased 150 basis points to 94.6% but that was more than offset by a 6.5% decrease in its average rent to $761, according to RealFacts.
The Eugene-Springfield MSA’s average monthly rent in the first quarter of 2010 came in at $856, up 3.1% from the same first quarter of 2009. Average occupancy there climbed 130 basis points to 96.7%, according to RealFacts. The Salem MSA posted an average monthly rent of $668, off 1% from 1Q09, but average occupancy there jumped 390 basis points to 93.1%. In Medford, average rent was $725, down 2.3% from 1Q09, while average occupancy gained 130 basis points to hit 95.3%.
Statewide, average occupancy was 93.6% in Oregon and 93.5% in Washington, according to RealFacts. The average monthly rents for the two states were $846 and $962, respectively.
Getting back to the national data, the Charlotte and Phoenix MSAs led the way nationally with first quarter rate increases of 4.6% and 4.5%, respectively, while the Salt Lake City, Baltimore and Denver MSAs each posted a 3.5% increase. Charlotte’s average first quarter monthly rent was $687, which is 2.2% higher than the same year-earlier period while Phoenix’s average first quarter monthly rent, $725, is 6.6% below 1Q09, according to the report. Average occupancy in Charlotte was 90.9% on average, up 150 basis points from 1Q09. First quarter average occupancy for Phoenix was 88.3%, up 110 basis points.
To review the report on the Portland-Beaverton-Vancouver MSA, click here. For the national report, click here.