Despite continued negative absorption eroding occupancy and rents, the report says jobs in the Portland metro area actually saw gains during the firs half of the year and home prices continue to rise. "This will likely benefit apartment communities as more potential buyers are priced out of the single-family market," states the report.
That could explain why developers pulled permits for 1,020 multifamily units in the second quarter, more than double 408 units a year ago, and why 1,532 units are slated for completion during the latter half of 2002, according the H&P's latest report.
Current development is most heavily concentrated in the Southwest, Beaverton / Hillsboro, Gresham / Troutdale, and Close-in Westside submarkets. "Developers appear to be taking advantage of low interest rates and lower labor costs amid the slumping economy," states the report.
The overall average vacancy rate is close to 6% compared to nearly 3% a year ago. Rents remained the same in some markets, rose slightly in others but declined slightly in most. Average sales price per unit through the first half of the year was $60,488, down from more than $64,000.
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