Apartment Market May Start Turning

PORTLAND-Apartment demand continues to falter here but could be leveling off as development continues thanks to low interest rates, according to the multifamily brokerage firm Hendricks & Partners.

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.