REAL ESTATE NEWS

It's been a seesaw start of the year for multifamily in Portland, as rising concessions and tightening supply remain a story.

Starting with the bad news, rents dropped by 1.9 percent year-over-year to an average of $1,734 per month in the first quarter, according to a market report from Colliers. It comes as concessions spiked, with more than 25 percent of landlords in Portland offering them, providing tenants with incentives at an average of $110 per month.

"Concessions remain common—especially among newer, higher-end properties—highlighting an ongoing balance between improving absorption and limited pricing power," Colliers explained.

Meanwhile, it's a little bit more of a mixed bag when it comes to other categories. Occupancy, for example, dropped 20 basis points year-over-year to 94.8 percent. But when compared with the previous three months, the rate improved by 20 basis points. The stability here was a result of strong leasing activity posted during the first quarter, according to Colliers.

It was a similar story for demand, which rebounded to a positive 809 units compared with -677 posted at the end of 2025. However, the first quarter total remains below the net move-ins of 1,098. Still, the first quarter demand exceeded the supply of 311 units.

And investment activity trended no differently, with volume coming at $320 million, a 27 percent increase from the fourth quarter, but a 43 percent plunge year-over-year.

MDH Management made the largest multifamily buy in the first quarter in Portland, with its $48 million purchase of a property in the

Hazel Dell/ Salmon Creek submarket. Glencrest Group and FPA Multifamily followed with $29.9 million and $12.90 million acquisitions in North Beaverton and Sylvan/Hillsdale, respectively.

Along with demand outpacing the supply, here's some more good news: Construction continues to fall and was down to 1,880 units compared with 3,599 seen a year ago.

Colliers predicts that this trend will bode favorably for multifamily in Portland going forward.

"With units under construction down materially and deliveries expected to remain muted through at least mid-2026, the market is positioned to rebalance more favorably, especially if population trends continue to stabilize," it said.

"Suburban submarkets with limited new supply, such as Tigard, appear well positioned for modest rent growth as high occupancy constrains availability."

While institutional capital in the market could remain picky, Colliers added that pricing will "likely firm."

Source: GlobeSt/ALM