Monday, October 20, 2008

Portland / Vancouver Apartment Rents and Occupancy Rates Bucking National Trends

Q3 Vacancy rates and rental data reported recently indicates the Portland/Vancouver rental market is following national trends in terms of occupancy, but still bucking the trend with rent increases.  Much of the Pacific Northwest is seeing increased rents while many parts of the country are flat or decreasing.  RealFacts reported 2008 Q3 Seattle/Tacoma rents up 5.7% from a year ago and Portland/Vancouver up 3.3%.

Meanwhile, Portland MAI Appraiser Mark D. Barry last week delivered a speech to the Metro Multifamily Housing Association (MMHA) predicting vacancies will increase slightly through year end 2009, with modest rent increases in the first six months of 2009 and flat the rest of '09.


VACANCY RATES
RealFacts reported 3Q 2008 vacancy rates as follows:
Portland/Vancouver vacancy rates increased from 4% to 5% over last 12 months (+1%) Nationally, RealFacts reported vacancy rates increasing from 6.4% to 7.1% (+0.7%). Axiometrics reported that occupancy rates dropped by -0.7% to 6.5%.

Portland's Metro Multifamily Housing Association reported Portland/Vancouver MSA vacancies increased 0.7% over the last 12 months from 2.9% to 3.6%.

All sources are attributing the drop in occupancy rates to rising unemployment which is forcing some renters to give up apartments and move in with friends or family members. RealFacts Inc. predicts additional job losses will result in additional apartment vacancies during Q4 2008.

RENT INCREASES
Portland/Vancouver MSA
Mark Barry reports:
  • Turnover rents up 4-8% to date with 3-6% increases in collections (RealFacts reports Portland/Vancouver MSA rents up 3.3% from one year ago)
  • Landlords are increasing fees and more are starting RUBS
Meanwhile, Axiometrics reports the US apartment Market had the smallest increase in any quarter since 2001; its data indicated effective rent increases of only 0.8% from a year earlier.  Read More.