Home Back Issues August 2011 The Portland rental squeeze

The Portland rental squeeze

| Print |  Email
Articles - August 2011
Wednesday, July 20, 2011

By Linda Baker

0811_PDXRentalSqueezeLandlords of Portland, rejoice. Although the city’s residential real estate market remains in the doldrums, the rental market is flourishing.

During the first quarter of 2011, apartment vacancy rates were 3.4%, the lowest in the country and a full point lower than last year. And as supply tightens, rental rates are soaring. Portland ranks fourth in the country for growth in apartment rents, according to AXIOMetrics, a Texas firm that tracks the apartment market. Nationwide, rents increased 1.77% in March compared to a year ago. During that same period, Portland recorded a whopping 9.92% increase in rental rates.

A steady stream of new residents and a limited supply of new projects are driving the Portland market, says Bernard Gehret, principal broker for Portland-based Joseph Bernard Investment Real Estate. In 2010, 737 construction permits were issued for Portland area multi-family developments; typically, there are 4,000, Gehret says. “People are leaving home ownership,” he says. “But there are no new buildings.”

Gehret says these market conditions aren’t expected to change any time soon, giving landlords another reason to celebrate. “We’ll probably see rents go up again in 2012,” he says.

 

Comments   

 
Connie Vitucci
0 #1 More of the same in 2Q2011Connie Vitucci 2011-07-27 14:07:13
The news with regard to Portland's apartment rentals is much the same for the second quarter of 2011, complete with falling vacancy levels and rising rents. According to Reis, Inc., which tracks approximately 105,000 rental units in Portland, the average metro vacancy rate is 3.5%, down 40 basis points from the first quarter and 220 basis points lower than this time last year. The second quarter average asking rent, meanwhile, has risen 0.7% since last quarter, to $849 per unit, reflecting a 3.0% increase since the second quarter of 2010. Although new development activity is expected to be somewhat subdued this year, thousands of rental units are expected to be completed in the coming years, including the delivery of more than 1,200 units in 2012. However, favorable market fundamentals are expected to keep the vacancy rate relatively unchanged amid ever growing rents.

For more apartment, retail, and office property insights in 200 metro areas and 1,800 submarkets/neig hborhoods nationwide, go to ReisReports.com.

Connie Vitucci
ReisReports.com
Quote | Report to administrator
 
 
Erika
0 #2 Blurg!Erika 2011-08-05 13:39:49
Any increase in rent and I will have to ditch my apartment and pitch a tent in Washington Park.
Quote | Report to administrator
 

More Articles

Interview: Dr. Mark Goulston

Contributed Blogs
Thursday, July 10, 2014
JustListenBY TOM COX | OB BLOGGER

Tom Cox interviews Dr. Mark Goulston, author of Just Listen, Discover the Secret to Getting Through to Absolutely Anyone.


Read more...

Podcast: Interview with Pete Friedes

Contributed Blogs
Wednesday, August 27, 2014

082714-thumb friedesbookTom Cox interviews Pete Friedes, author of "The 2R Manager," about becoming a Best Boss.


Read more...

Private liberal arts education: superior outcomes, competitive price

Contributed Blogs
Tuesday, August 26, 2014
0826 thumb collegemoneyBY DEBRA RINGOLD | OP-ED CONTRIBUTOR

Why has six years become an acceptable investment in public undergraduate education that over-promises and underperforms?


Read more...

OB features update

Linda Baker
Thursday, August 28, 2014
update-logo-14-thumb

As summer winds down, we update a few feature stories that appeared in our print publication this past year.


Read more...

The Scott Kveton affair

News
Wednesday, July 09, 2014
ScottKvetonBY LINDA BAKER | OB EDITOR

Scott Kveton, the CEO of Urban Airship is taking a leave of absence from the company. As the story continues to unfold, here’s our perspective on a few of the key players.


Read more...

OB Video: Dress for Success

News
Wednesday, July 02, 2014
DFSOBY JESSICA RIDGWAY | OB WEB EDITOR

Dress for Success Oregon promotes the economic independence of disadvantaged women by providing professional attire, a network of support and career development tools.


Read more...

Video: The 100 Best Survey

News
Thursday, August 28, 2014

100-best-logo-2015 500pxw-1OB Research Editor Kim Moore shares some pointers about the 100 Best Companies to Work For survey.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS