Fall 2026 Oregon Rental Market Update: Key Takeaways from Multifamily NW’s Apartment Report

On October 13, Multifamily NW released its Fall 2026 Apartment Report at its luncheon at the Oregon Convention Center. This edition is the first built on CoStar data, which nearly doubles the sample size. It covers about 191,000 units in the Portland-Vancouver metro and about 60,000 more in other Oregon markets, including Salem/Keizer and Corvallis/Albany. Below are the numbers we think matter most to Oregon rental owners, followed by what we’d do with them if we owned anywhere from one house to 50 doors.

Key takeaways from the Fall 2026 Apartment Report

Vacancy is falling almost everywhere

Vacancy across the Portland metro fell to 6.3%, down from 7.3% in Fall 2025. It dropped in nearly every Portland-metro submarket and in all five other Oregon markets surveyed. The main exceptions were SW Portland and Outer SE Portland. The report credits two things: the market absorbed recently finished buildings, and fewer new projects broke ground over the past few years. In the third quarter of 2026, the Portland market absorbed 1,300 units. The long-run quarterly average is 820.

Rents are flat, and growth is expected to be modest

The average asking rent in the metro was $2.09 per square foot, almost the same as last fall’s $2.07. CoStar puts year-over-year rent growth at 1.3% and expects about 2% a year through 2031. Patrick Barry of Barry & Associates calls it a “new normal”: moderate rent growth, vacancy that is still elevated, and investors who are more selective.

Concessions are concentrated in newer buildings

Economist Eric Fruits notes that concessions are most common in buildings less than 15 years old. Those buildings are exempt from Oregon’s statewide rent cap. He expects rents to recover in that newer stock first. His view is that today’s free-rent concessions “mark the bottom of the cycle, not a new baseline.”

At the luncheon, Fruits also made the case that “every rent check starts as a paycheck,” walking through Portland-area job losses, population shifts, and slowing construction. Read his full talk: Every Rent Check Starts as a Paycheck.

The construction pipeline has thinned sharply

About 2,500 units are under construction in the metro. That’s down from a five-year peak of 12,914 in late 2022 and close to 2011–2012 levels. CoStar expects about 2,500 deliveries in each of 2026 and 2027, with more starting in 2028. Building costs are still well above what existing buildings sell for, so developers have little reason to start new projects. Fewer new units should keep pushing vacancy down.

Borrowing costs and values are under pressure

On September 16, the Federal Reserve raised its target range a quarter point to 3.75–4.00%. It was the first hike since 2023. By early October, long-term Treasury yields were near 5.3%, the highest since 2002. Through September, metro apartment sales (5+ units) had a median price of $165,517 per unit, down 6.4% from last year. Cap rates are around 6.32% and have been creeping up.

Operating costs and older buildings

The report says older Portland apartments built before 1940 face high insurance and maintenance costs, smaller units, harder financing, and higher City of Portland taxes. Buyers want properties where better management or physical improvements can add value, and properties whose current income already gives a reasonable return.

Oregon policy

Oregon’s statewide rent cap for 2027 is 10%, up from 9.5% this year. That is the statutory ceiling. Buildings under 15 years old are still exempt. Fruits also points to Portland’s inclusionary zoning, the city’s renter relocation-assistance mandate, and Multnomah County’s Preschool for All tax. He sees these as reasons Multnomah permits fell to 54% of their 2014–2016 level for 2020–2025, while Washington and Clackamas counties held at 83% and 84%. At the luncheon, Multifamily NW also pointed to Portland proposals worth watching. These include lowering the rent increase that triggers relocation assistance from 10% to 5%, and new energy and decarbonization standards.

Sub-market notes

Portland

Close-in neighborhoods improved the most. Inner/Central NE (8.0%), N Portland/St. Johns (7.4%), and NW Portland (8.4%) each saw vacancy drop by at least 150 basis points. They still have some of the highest vacancy in the metro, though. Newer buildings there are filling up but haven’t stabilized yet. Downtown is at 6.9% and SW Portland is at 7.1%. Suburban areas are tighter, for example Clackamas at 4.8% and Beaverton at 5.6%. Investors keep moving toward the suburbs, where the median sale price is about $175,000 per unit.

Salem / Keizer

This is the largest market surveyed outside the metro, with 22,193 units. Vacancy fell to 5.4% from 5.9%. Average asking rent stayed at $1.69 per square foot. Average asking rents were about $1,335 for a one-bedroom and $1,522 for a two-bedroom.

Corvallis / Albany

This was the tightest market in the report. Vacancy was 3.5%, down from 3.9%. Rent held at $1.93 per square foot. Average asking rents were about $1,319 for a one-bedroom and $1,651 for a two-bedroom.

What this means for owners of 1–50 doors

Most of this report tracks larger apartment buildings. Single-family and small multifamily rentals compete for the same renters, though, so the same trends apply. Here’s what we would focus on:

• Price from current comps, not last year’s. Rents are flat in most areas. Units priced even a little above market will sit. With 2% annual growth expected, one month of vacancy can cost more than a year’s increase.
• Keep good residents. Vacancy is falling, but slowly. Steady renewals at fair increases usually beat turnover costs. That’s especially true in Portland’s close-in neighborhoods, where newer buildings are still offering move-in specials.
• Know your rent cap. The 2027 cap is 10%. Make sure every increase follows notice requirements and any local rules, especially inside Portland city limits.
• Plan for costs, not just rent. Insurance, maintenance, and taxes are squeezing older properties. Review your 2027 budget now, and plan deferred maintenance before it turns into an emergency.
• Be careful with refinancing and sale timing. With long-term yields near 20-year highs and values still adjusting, talk to your lender early if a loan matures in the next year.
• Watch Portland policy. Changes to relocation assistance or energy standards could affect what an increase or a renovation costs you.

A steadier market is taking shape

The report’s overall message is cautious optimism. Vacancy is falling while very little new supply is coming, and that should slowly bring the market back into balance. Owners who price carefully, keep their residents, and control their costs are in a good spot for that shift.

LongStreet Property Management manages more than 1,200 doors across Portland, Salem, and Corvallis/Albany. If you’d like to know how your rent compares with today’s market, request a free rent analysis at longstreetpm.com.

Source: Multifamily NW, Fall 2026 Apartment Report (Volume 45), with data from CoStar and contributions from Clay Newton (Kidder Mathews), Patrick O. Barry (Barry & Associates), and Dr. Eric Fruits.