Market Pulse Logo_MF Blue-02-02
Q2 • 2021



A Snapshot of the Pacific Northwest Multifamily Market

The past year threw a number of curveballs at the real estate industry. While we are still living in unpredictable times, just about every economist is pointing to an economy set to explode in 2021. With lockdown restrictions easing and cities reopening across the Pacific Northwest thanks to the rollout of vaccines, apartment demand is expected to see a substantial rise this year. Vacancy rates should fall back, and strong prospects for NOI growth mean yields will either edge back or hold steady this year. Read below for specific submarket snapshots.

Market Pulse Logo_MF Blue-01


12 Mo. Delivered Units
12 Mo. Absorption Units
Vacancy Rate
12 Mo. Asking Rent Growth
  • In light of increasing regulations in Portland and in Oregon, Vancouver’s profile should rise further among multifamily stakeholders.
  • Despite the construction surge, demand is high and vacancies are low.
  • Vancouver’s rent growth has outperformed the overall Portland metro for the past 6 years, and year-over-year submarket gains are significantly stronger than Portland’s performance.
  • Even before the pandemic, Vancouver consistently saw some of the strongest rent gains across the Portland-metro area.
Market Pulse Logo_MF Blue-01


12 Mo. Delivered Units
12 Mo. Absorption Units
Vacancy Rate
12 Mo. Asking Rent Growth
  • In contrast to other major Western U.S. cities, apartment demand remains strong in Portland heading into Q3 of 2021.
  • Overall, vacancies have trended downward since mid-2020 and are projected to stabilize around the 6% mark in the coming quarters.
  • Average rent levels in Portland are on the rise as of the end of Q2 2021. A strong spring leasing season helped to stabilize the market.
  • Q1 and Q2 of 2021 gave way to visible rent growth in the Downtown and Northwest Portland submarkets.
Market Pulse Logo_MF Blue-01


12 Mo. Delivered Units
12 Mo. Absorption Units
Vacancy Rate
12 Mo. Asking Rent Growth
  • Going into Q3 2021, Salem’s vacancy rate is substantially below both Portland’s performance and the national figure.
  • Continued demand for apartments has fueled rent growth in Salem, which is now performing near the top of all Oregon metros.
  • Cumulative rent gains in Salem outpace Portland’s performance.
  • Asking rents are still about 1/3 higher in Portland than in Salem. Annual rent growth in Salem is typically below the statewide rent cap of 7%, and current performance is no exception.
Market Pulse Logo_MF Blue-01


12 Mo. Delivered Units
12 Mo. Absorption Units
Vacancy Rate
12 Mo. Asking Rent Growth
  • Apartment rents in the Tri-Cities market rose at a 13.4% annual rate by the start of Q3 2021.
  • In addition to the 520 units delivered over the past three years (a cumulative inventory expansion of 4.7%), there are 500 units currently underway.
  • Vacancies trended slightly upward over the past 4 quarters, but were basically in line with the 10-year average.

On June 24, 2021, the federal eviction moratorium was extended until July 31,2021 for qualifying tenants.

Oregon: Oregon’s Eviction Moratorium ended on June 30, 2021. Regular rent payments resume on July 1, 2021, unless tenants can show documentation that they have applied for rental assistance.  Proof of incoming rental assistance may award tenants 60 days before eviction action can be taken on a current non-payment balance. Additionally, in May 2021, a bill passed in Oregon extending the grace period for repayment of rent balances to February 28, 2022.

Washington: Washington’s Eviction Moratorium ended on June 30, 2021. In June 2021, Washington announced a “bridge” proclamation between the eviction moratorium and the housing stability programs, effective July 1, 2021 through September 30, 2021. Beginning August 1, 2021, renters are expected to pay full rent, reduced rent negotiated with landlord, or actively seek rental assistance funding. Landlords may only evict a tenant if none of those actions are being taken, but must offer the tenant a reasonable re-payment plan before beginning the eviction process.

The TMG Multifamily Quarterly Market Pulse is brought to you by TMG Multifamily, an AMO accredited property management company providing a full suite of management services for existing apartments, new developments, lease-ups, and mixed-use properties. TMG partners with investors to proactively identify strategic opportunities and maximize their return on investment. Locally owned and regionally focused, TMG has been helping clients reach their financial goals since 1985.

Carmen Villarma

The Management Group, Inc.
(360) 606-8201

Vancouver/Clark County
7710 NE Vancouver Mall Dr Ste B
Vancouver WA 98662

Portland Metro
16520 SW Upper Boones Ferry Rd Ste 250
Portland OR 97224

698 12th St SE Ste 240
Salem OR 97301

30 S Louisiana St Ste 1
Kennewick WA 99336

All data in this report is pulled from CoStar

Scroll to Top