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

Managing family assets: The importance of planning ahead

News
Friday, August 22, 2014
Unknown-1BY CLIFF HOCKLEY |  OB GUEST CONTRIBUTOR

When business intersects with family, a host of  situations can arise. Without a clear vision and careful planning, hard-earned investments can become stressful burdens.


Read more...

A Recipe for Success

October 2014
Thursday, September 25, 2014
BY LINDA BAKER

Two businesswomen, two iconic food brands and one food-obsessed city. We thought this sounded like a recipe for good conversation. So in late August, Oregon Business sat down with Wendy Collie, CEO of New Seasons Market, and Kim Malek, owner of Salt & Straw, to discuss their rapidly expanding businesses and Oregon’s trendsetting food scene.


Read more...

Report Card

September 2014
Tuesday, August 26, 2014

Strong public schools shore up the economy, survey respondents say. But local schools demonstrate lackluster performance.


Read more...

What I'm Reading

September 2014
Wednesday, August 27, 2014

Kim Ierian, President of Concorde Career Colleges, and Deborah Edward, Executive Director of Business for Culture & the Arts, share their recent reads.


Read more...

Grape Expectations

October 2014
Thursday, September 25, 2014
BY HANNAH WALLACE

Well-financed outsiders from France and California are buying up vineyards and wineries in the Willamette Valley.


Read more...

Shipping News

September 2014
Tuesday, August 26, 2014
BY JENNIFER MARGULIS

In 2012 The Dalles, a city of some 14,400 located 75 miles east of Portland and often seen as the poor cousin to adjacent Hood River, completed a massive project to revitalize its dock.


Read more...

Green Endeavor cleans up

News
Wednesday, August 06, 2014
080614 ULnew greenendeavorBY LINDA BAKER | OB EDITOR

Portland startup Green Endeavor strikes gold, inking a partnership with Underwriters Laboratories, an Illinois-based consulting and certification company with offices in 46 countries.


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