The Spring 2021 Apartment Report offers the most up-to-date rent and vacancy data for the Oregon market. The numbers are accompanied by four articles covering analysis of the data, recent regulations, an economic forecast and assessments of market fundamentals. To secure a complete copy of the Spring 2021 Apartment Report, visit Multifamily NW.
As we pass the one-year anniversary of the COVID-19 pandemic, the impact on the multifamily market is not as bad as many experts feared. There is no question it will be an uphill battle to get the market back to where it was, but there is “a light at the end of the tunnel,” per the Spring 2021 Apartment Report from Multifamily NW.
The trend from urban to suburban living continues, along with the shift to larger apartments, as many are still working from home. The overall vacancy rate in the Portland and Vancouver area remains around 5%. The lowest vacancies are seen in Oregon City and Outer Southeast, at 2.6%, followed by East Vancouver, at 2.8%. The highest vacancies can be found in North Portland, at 10.8%, Downtown Portland, at 9.4%, and Inner Southeast Portland, at 8.5%. The Salem market remains stable with a 4% vacancy rate. The Bend and Redmond area shows increasing vacancies at 7%. Eugene and Springfield has decreased significantly to 2% vacancy due to the return of college students. Three-bedroom, one-bath units continue to have the best occupancy, with 2.5% vacant, compared to studios, at 7.9%.
Oregon and federal law continue to play a significant role in the future of the housing industry in Oregon. Federal laws enacted early in the COVID-19 pandemic remain in place, including the CARES act which impacts affordable properties, creates longer termination dates for non-payment notices and has no specific end date. In Oregon, HB 4401 amended HB 4213 in December 2020, and remains in effect until July 2021. A summary of HB 4401 can be found here. Due to the dynamic nature of the legislation, legal counsel is strongly recommended for housing providers to ensure full compliance with the state and federal regulations.
Looking forward, economists expect consumer spending to increase in the coming year as the market starts to shift back toward old habits. Some are predicting that economic growth this year and next will be “the strongest we’ve seen in decades, possibly generations”. Moreover, “Much of the bullishness in terms of the outlook is due to the quick development of vaccines, plus the strong federal policy response. Oregonians are ready to resume the activities previously restricted by the pandemic and most have the income to support it.”
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