Healthy Demographics Push Up Demand in Portland
- Jul 13, 2018
Portland’s strong economy makes it an attractive metro, especially for young professionals looking for high-income jobs. In 2017, the metro added 30,000 people, which coupled with an increased interest from major companies looking to expand or relocate to the area, bolstered multifamily demand. As developers stay focused on the more profitable upscale projects in core submarkets, affordable housing remains an issue.
Education and health services, one of the metro’s most important economic drivers, added 14,400 jobs year-over-year through February, for an 8.5 percent increase. Intense development has led to a sharp expansion of the construction sector, which gained 3,100 new positions. Intel’s plan to invest $100 billion over 30 years continues to solidify Portland as a regional tech hub, maintaining the IT giant’s anchor status, alongside other powerhouses such as Kaiser Permanente, Nike or Boeing.
More than 2,000 multifamily units were delivered in metro Portland this year through April, and we expect roughly 4,200 units to come online for the whole of 2018. As a result of accelerated multifamily development, occupancy in stabilized properties dropped to 94.8 percent, down 120 basis points through March. However, overall demand is expected to remain high and generate a 1.5 percent rent growth this year.