Investment Volume Increases in Q3

  • The third quarter’s $313M in multifamily investment sales volume represents a 92% increase over Q2’s $163M, and is also slightly above Q1’s total.
  • The Q2 figure likely represents the trough of 2017’s quarterly sales because transaction activity typically picks up in the second half of each year. For example, sales volume peaked in the third quarter of 2015, and in the fourth quarter of 2016.
  • In terms of investor profile, around 70% of Q3’s buyers were private, while the remaining 30% were institutional. This compares to last quarter’s mix of 85% private and 15% institutional.
  • In addition to volume, most transaction analytics also reveal improvement in the third quarter. Sales averaged $8.7M per transaction, a 120% increase over Q2 2017 and a 7.5% year-over-year increase versus Q3 2016. The median price per transaction came in at $2.95M, a 36% increase over Q2 2017.
  • The 1,624 units that transacted averaged $174k per door and had a median price per door of $149k, both of which increased 12.5% over Q2 2017.
  • Occupancy rates moved upward in the third quarter, in accordance with typical seasonal trends. Around the beginning of 2017, occupancies declined as vacancies increased, and then occupancy rates showed increases in Q2 and Q3 2017.
  • Rental rate growth remains positive when measured at the county and MSA levels. All four metropolitan counties and the broader MSA shared a trend in the third quarter of slowing, yet still positive, rental rate growth. For example, Washington County showed a change from 4.1% growth in Q2 to 3.4% growth in Q3, and Clark County posted rental rate growth of 5.7% and 4.9% in the same respective periods.
  • The pipeline of units physically under construction increased again over the quarter, to at least 9,777. A majority of this activity is taking place within the City of Portland, where developers continue executing on projects vested under rules predating Inclusionary Housing regulation (described in greater detail later in this report).
     

Quick Fact: $313 Million

  • 36 Transactions
  • 1,624 Units
  • $783M Year-to-Date Sales Volume