15 Sep Market demands bigger apartments
Portland market saturated with empty studios; family-size rentals slow to come online
In Portland, 75 percent of market-rate apartments built between 2012-2017 are studios or one-bedrooms. There’s a disparity between that and what the market demands as Millennials, the new largest generation, begin to start families — and want two- or three-bedroom residences.
Emily Anderer, the CoStar analyst who specializes in the Portland market, tracked 104 new buildings with five or more market-rate rental units that have been built since 2013, and found that 17 percent of units are two-bedroom; 5 percent are three-bedroom and zero apartment rentals have four bedrooms.
“I can tell you I pulled vacancy data going back for the past 10 years, broken out by how many bedrooms are in a unit,” Anderer told the Business Tribune. “In the last two years, vacancy rates for studios has shot up from about 5.5 percent to 9 percent. That jump was the biggest for studio units: vacancy is tightest right now in two- and three-bedroom apartments, it’s just over 5 percent.”
CoStar conducts research on commercial real estate across the nation and in the U.K., and has more than $1 billion invested in research platforms and operations for its database.
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