PORTLAND - Portland is one of the tightest apartment markets in the country. It's now ranked 11, up from 17 in 2011.
Real Estate investment services firm Marcus & Millichap tracks the apartment markets across the country.
"It's no surprise vacancy has come down, said Tony Cassie, Regional Manager for Marcus & Millichap.
Cassie notes demand is out stripping supply.
"The improvements in the economy are really driving where the apartment market is going today," said Cassie.
At The Gentry on 12th & Taylor in downtown Portland, the 60-unit building is a reflection of today's apartment market.
"They rent quickly", said manager, Darlene Woodcock. "Seldom do I even get a chance to put them on Craigslist."
Those forced out of the housing and rental market during the downturn is causing new historic low vacancy rates.
"The time associated with bringing new rental product to market, the cost associated with it can be somewhat prohibitive, which prevents additional new units in the pipeline," said Cassie.
It was just a few years ago, apartment managers were offering deep discounts, free TV's, free months of rent to keep units filled. Those days are now gone.
"We're bringing the rents back up to where they were before the big crash," said Woodcock.
Rents will increase on average 4 percent this year. In some cases rents match a mortgage payment, but, that won't steer renters to buy a home according to Cassie.
"Because you can't qualify to get a loan. Simple answer".
It's only recently, developers are getting the needed financing to starting building again. But, it will take several years before new units hit the market before rents stabilize.
According the Marcus & Milchap report, Portland comes in fourth for job growth behind Austin, Houston and San Jose.
