Market Insights | Summer 2025 | Portland
Summer 2025
Average
Rent
Average
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YTD Sales
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YoY Rent
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Portland-Vancouver-Hillsboro is the 26th most populated metro region in the US, with about 2.54 million residents. Oregon's largest city, Portland, the "City of Roses," reported a June 2025 population of roughly 635,000. The area continues to attract new people, with Vancouver, Washington, across the Columbia River, experiencing the most population growth last year. Vancouver's population has grown to 199,884 in 2025.
Portland's economy remains diverse and robust, anchored by technology, healthcare, manufacturing, and professional services. Notable companies such as Nike (#90 on the 2025 Fortune 500) and Intel (#86) maintain major presences, and although some ranks slipped, their local impact endures. The metro hosts over 1,200 tech firms with Fortune-level hubs including Precision Castparts, Daimler Trucks North America, Columbia Sportswear and Oregon health & Science University which employs over 20,000, nearly rivaling Intel's 23,000 local jobs. The presence of a Federal Reserve branch underscores the regions economic strength - Portland is one of only 12 U.S. metro areas with this distinction.
Over 45,000 enterprises fuel innovation and entrepreneurship, enhancing Portland's position as a multifamily investment magnet.
The Portland metro area draws multifamily investors, not just for its cultural vibe or economic resilience, but because it's nestled amid some of America’s most iconic natural wonders—where the mist-kissed Columbia River Gorge cascades with dramatic waterfalls and downtown's Forest Park sprawls over 5,000 acres of lush urban wilderness. Hikers, bikers, birdwatchers, and weekend adventurers flock here year-round. With such geographic poetry, a thriving culinary, arts, and eco-conscious scene, and access to internationally renowned wineries, craft breweries, and Mount Hood and coastal day-trips, the region weaves together quality of life and tourism-powered vibrancy—making it an irresistible stage for long-term multifamily growth.
Employment
Nonfarm jobs employ 1,250,900 individuals in the region, as reported by the Oregon Employment Department. The local unemployment rate is 4.5%, slightly above the national average of 4.1%.
Nike and Intel continue to benefit from favorable tax incentives running through 2042 and have recently expanded operations in the region.
Intel recently completed a $3B D1X plant expansion and is planning another $3B expansion opening in 2028.
Nike finished a massive 1.4 million SF addition of office space in Beaverton, reinforcing its long-term commitment to the region.
OHSU Broke ground on a $650M hospital expansion projected to generate 3,000 new jobs when it completes in 2026.
Oregon's biotech and mass timber sectors continue their upward trend.
| % ∆ from May 2024 | |||
|---|---|---|---|
| Metro Area Employment (Thousands) | May 2024 | May 2025 | Portland |
| Total Nonfarm | 1,251.1 | 1,251.1 | 0.0% |
| Mining and Logging | 1.1 | 1.1 | 0.0% |
| Construction | 82.1 | 79.3 | -3.4% |
| Manufacturing | 123.1 | 116.6 | -5.3% |
| Trade, Transportation, and Utilities | 220.9 | 219.7 | -0.5% |
| Information | 26.9 | 27.6 | 2.6% |
| Financial Activities | 71.4 | 71.4 | 0.0% |
| Professional and Business Services | 196.6 | 197.1 | 0.3% |
| Private Education and Health Services | 202.6 | 208.9 | 3.1% |
| Leisure and Hospitality | 121.3 | 121.8 | 0.4% |
| Other Services | 44.3 | 44.6 | 0.7% |
| Government | 160.8 | 163.4 | 1.6% |
Source: U.S. Bureau of Labor Statistics
Rental Market
Rents have been stagnant over the past two years, currently hovering at an average of $1,650. While starts have slowed, the construction pipeline is down about 64% YOY. As the overhang of buildings recently opened burns off, rents are expected to begin climbing again.
CoStar expects Portland rent growth to rise by 2025 year end to 1.2% and to more or less 3% annually from 2026-2030.
Average Monthly
Mortgage Payment
Average Monthly
Rent
Source: Bankrate. Median SP $550K, 20% down, 30-year fixed, APR 6.48%, credit score 720+. Estimated taxes and homeowner's insurance included.
Average Rent / Vacancy
Asking Rent / Bedroom
Multifamily Construction
There are 3,000 units under construction and set to deliver in 2025, which will expand existing inventory by 1.3%. Net deliveries over the past 12 months total 6,200 units. Based on absorption of 5,200 units over the same period, a slight supply overhang lingers, but Portland's vacancy rate is already on a downward trajectory. CoStar forecasts completed units to drop from 3,472 in 2025 to 1,179 in 2026. This is due to the fact that groundbreakings over the prior three quarters total well under 1,000 units, easily the slowest pace of construction activity in the past decade. On net, the region expects a substantially reduced number of competing units coming online. The current pace of deliveries would put supply increases during 2025 at around one-third of the units completed in 2024. If the trend holds through 2026, this could fuel the weakest two-year stretch for deliveries since 2012 and 2013.
Multifamily Completions
Past 12 Months
Single Family
Permits
Multifamily Permits
(5+ Units)
Median Single
Family Price
Completions / Net Absorption
* Estimated
Units by Submarket Delivering in 2025
Units Under
Construction
Units UC Delivering
in the Next 4 Quarters
| Submarket | Units Under Construction |
|---|---|
| Aloha | 455 |
| Beaverton | 0 |
| Central Northeast | 0 |
| Clackamas County | 0 |
| Clark County | 0 |
| Columbia County | 0 |
| Damascus | 0 |
| Downtown Portland | 0 |
| East Portland | 15 |
| Hillsboro | 594 |
| Lake Oswego | 0 |
| North Portland | 19 |
| Northeast Portland | 168 |
| Northwest Portland | 341 |
| Oregon City | 0 |
| Outlying Washington County | 0 |
| Sherwood / Tualatin | 0 |
| Skamania County | 0 |
| Southeast Portland | 355 |
| Southwest Portland | 0 |
| Tigard | 0 |
| Troutdale / Gresham | 135 |
| Vancouver | 629 |
| Wilsonville | 0 |
| Yamhill County | 196 |
Multifamily Sales
Multifamily demand in Portland/Vancouver rebounded sharply in 2024, rising 62% year-over-year to $1 billion. That momentum has continued into 2025 with the market posting over $323M in closed deals in Q1 and Q2 closing at $435M for a total of $759.8M in the first half of 2025 alone. Portland's multifamily market is likely to do well in the long term due to:
- Steady demand for rental housing
- A regional shortfall of 120,000 homes reinforcing long-term demand for rentals
- Ongoing delays and cost escalations in permitting and construction
- A metro-wide Urban Growth Boundary that eliminates growth onto less expensive land parcels
- The high cost of homeownership - with median sale prices of $550k and mortgage rates at 6.5%
- Delay of homebuying by Millennials and Gen Z
Oregon has a goal of building 36,000 new homes annually, however it is not expected to reach the target quickly in the existing regulatory environment. We expect to see additional regulatory support for denser, transit-oriented housing. Future policy changes may fund modular, mass timber, and other manufactured housing solutions.
YTD 12 Mo. Transaction Volume
YoY Change
12 Month Market Price/Unit
Annual Price Change
Average Sales PPU / Cap Rate
Sources: CoStar, HFO Investment Real Estate Research, Bureau of Labor Statistics, U.S. Census, Redfin
Team
Greg Frick
Founding Partner
Cody Hagerman
Founding Partner
Rob Marton
Partner
Tyler Johnson
Partner
Jack Stephens
Partner
Lee Fehrenbacher
Senior Broker
Adam Smith
Senior Broker
Todd Tully
Broker
William Thompson
Broker
Yuriy Chubok
Broker