Here is a Portland apartment market mid-year summary for 2024 that shows the Portland apartment market stabilizing or improving.
By Patrick Barry
There was a general sense of optimism that the apartment market would show improvement in 2024. However, at the halfway point of the year, apartment market fundamentals (rents/vacancies) are stabilizing or improving, though the sales market remains extremely sluggish, Barry & Associates write in a report.
“We have created a one-page report summarizing how the Portland apartment [market] is faring in YTD 2024,” the report says. “While the sales market remains depressed, apartment fundamentals will likely see continued improvement based on very little proposed construction.
“Apartment sales picked up in the second quarter of 2024 and buyers/sellers appear to have accepted that lower prices seen recently are not transitory. Keep in mind that not all submarkets are equal, with certain areas faring better than others.”
Portland Apartment Market Snapshot Mid-Year 2024
- Rents up 1.2% year-over-year and close to the peak in mid-2022.
- Median price per square foot down 14.5% year-over-year.
- Median price per unit down 12.6% year-over-year.
- Cap rates up 40+ basis points.
- Number of transactions trending below 2023, which was a 30+ year low. Through June, only 39 sales or 78 when annualized. The average number of sales from 1990-2022 was 201.
- Numerous distressed sales year-to-date in 2024- Source CoStar.
About the author:
Patrick O. Barry is a certified general appraiser with Barry & Associates – Apartment Appraisal Specialists, 1535 SW Clifton St, 2nd Fl, Portland, OR 97201. Phone: 971-275-5345. pb@barryapartmentreport.com – www.barryapartmentreport.com
