Vacancy rate falls to 8.7% while construction pipeline shrinks 68% year-over-year in Q3 2025

Portland’s apartment market is entering a period of adjustment after years of rapid expansion, with investors and developers recalibrating their strategies amid changing fundamentals. The third quarter of 2025 brought a 23 percent decline in average sale prices per unit to $167,524, according to a third quarter Kidder Mathews multifamily report, while vacancy rates compressed and construction activity contracted sharply. The multifamily vacancy rate fell to 8.7 percent in Q3 2025, down 40 basis points from the same period last year, even as average asking rents dipped 1 percent to $1,867 per month.

“The Portland multifamily market in Q3 2025 reflects a cooling trend in construction activity and a

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