While Portland has a much larger construction pipeline, Puget Sound’s stronger job and Seattle population growth are enabling it to absorb supply more quickly, CoStar reports.
Seattle and Portland are both benefitting from a sharp slowdown in apartment construction compared with the peak development earlier this decade, CoStar says.
However, these two markets are not moving in lockstep.
For example, Seattle has outperformed Portland in annual multifamily rent growth, with rates rising 0.7% while Portland saw a 0.3% decline.
In Seattle, the employment-driven demand outpacing apartment supply, while Portland continues to grapple with localized economic softness and historical oversupply.
“Seattle continues to build apartments at a staggering clip compared to Portland. However, strong tech and regional employment gains mean these new units are being absorbed quickly, keeping vacancy manageable and allowing for the +0.7% effective rent,” writes Elliott Krivenko.
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