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Q3 • 2021



A Snapshot of the Pacific Northwest Multifamily Housing Market

There is only good news for multifamily investors! While 2020 had a lulling effect at its start, it rebounded quickly in the second half of 2020 and has continued to gain momentum in nearly all markets. Class B & C properties stayed strong throughout 2020 & 2021 and Class A properties had notable gains in Q2 2021. Overall, Q2 rents in nearly all metro markets were higher than pre-COVID levels, and signs point to continued growth. Vacancy in many markets is at an all-time low even as new construction properties are coming on line at a steady pace. Net absorption is nearly 5x higher than this time last year and 4.5% above pre-COVID 2019 levels. Read below for specific submarket snapshots.

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12 Mo. Delivered Units
12 Mo. Absorption Units
Vacancy Rate
12 Mo. Asking Rent Growth
  • Construction has continued at a quicker pace in Vancouver than almost anywhere else in the metro. Despite this construction surge, demand is high and vacancies remain low.
  • Vancouver’s year-over-year rent growth is consistently outpacing the Portland metro’s overall performance.
  • Vancouver has around 940 units under construction, more than almost any other area submarket, set to expand existing inventory by 2.9%.
Vancouver Q4 Overall and Stabilized Vacancy
Vancouver Q4 Market Rent Per Unit and Rent Growth
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12 Mo. Delivered Units
12 Mo. Absorption Units
Vacancy Rate
12 Mo. Asking Rent Growth
  • Vacancies have trended downward since mid-2020, and have dipped below the frictional 5% mark.
  • Apartment demand remains strong going into Q4 2021. The region’s affordability and high quality of life are driving robust in-migration, which underpins apartment demand.
  • Average rent levels are rising fast. Market rent metro-wide is currently $1,520 per month.
  • Portland’s outlying suburband communities continue to post the strongest rent growth, while Downtown Portland has seen some visible rent growth in 2021 following a more than 6% decrease in 2020.
Portland-Metro Q4 Overall and Stabilized Vacancy
Portland-Metro Q4 Market Rent Per Unit and Rent Growth
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12 Mo. Delivered Units
12 Mo. Absorption Units
Vacancy Rate
12 Mo. Asking Rent Growth
  • The strength of Salem’s apartment sector has helped it weather lingering effects of the pandemic.
  • Boasting exceptionally low vacancy rates, Salem’s 2.0% is substantially lower than the national figure of 4.5%.
  • Continued demand for apartments has fueled strong rent growth in Salem, which is now performing near the top of all Oregon metros.
  • Cumulative rent gains over the past ten years of 57.1% outpace national performance at 39.4%.
Salem Q4 Overall and Stabilized Vacancy
Salem Q4 Market Rent Per Unit and Rent Growth
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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.
Tri-Cities Q4 Overall and Stabilized Vacancy
Tri-Cities Q4 Market Rent Per Unit and Rent Growth

On August 26, 2021, the US Supreme Court struck down the CDC’s federal eviction moratorium, declaring it unconstitutional. Any landlords who had cases on hold due solely to a receipt of a CDC declaration may now proceed with termination of tenancy due to non-payment.

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.

This Multifamily Market Pulse brought to you by TMG Multifamily, providing property management services across Washington and Oregon since 1985. The TMG Family of Companies specializes in both multifamily and single family property management, homeowners association management, maintenance, and home repair.

Carmen Villarma

President, CPM
(360) 606-8201


Vancouver/Clark County
7710 NE Vancouver Mall Drive
Vancouver, WA 98662

15350 SW Sequoia Pkwy, #200
Portland, OR 97224

698 12th Street SE, Ste. 240A
Salem, OR 97301

30 S Louisiana Street
Kennewick, WA 99336

All data in this report is pulled from CoStar

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