A Snapshot of the Pacific Northwest Multifamily Housing Market

The first quarter of 2026 brought one of the slowest winter leasing seasons we have seen in several years. Traffic was down across all of our primary markets, with Salem proving to be the most resilient. While winter is typically a slower season for apartment leasing, this year’s softness appeared to be amplified by broader economic pressure on renters. With household budgets still strained by fuel costs, inflationary pressure, and general economic uncertainty, many residents chose to stay in place rather than absorb the costs associated with moving.

That dynamic was especially evident at properties that pushed rents above true market tolerance. In many cases, residents were unwilling to accept higher renewal increases when competing communities were offering concessions that reduced the overall cost of moving. As a result, aggressive rent positioning was met with greater resistance, particularly in more competitive submarkets. Concessions remained a significant factor throughout the quarter, especially among Class A and Class B properties.

Another notable factor influencing market conditions has been the changing construction environment. While the overall pace of new deliveries has slowed, the pullback in construction activity has also affected local employment in markets that had previously benefited from a heavy volume of development. In Washington in particular, reduced construction labor demand appears to have contributed to softer migration patterns and added pressure to occupancy in some areas.

Within TMG’s multifamily portfolio, however, there were still encouraging signs in Q1. Delinquency improved quarter-over-quarter, declining to a combined 1.4% across all locations. Portland posted the highest delinquency within the portfolio, followed by Tri-Cities and Southwest Washington. This continued improvement reflects the benefit of disciplined operations and consistent collection practices, even in a more challenging leasing environment.

The good news is that leasing traffic has begun to improve as we move deeper into spring, and we expect that momentum to continue through the stronger seasonal months ahead. That said, we do not anticipate the pace of recovery to mirror the leasing strength seen in 2023, which was an all-time high. In the current environment, performance remains a lead-generation game: the communities that create the most visibility, capture the most prospects, and convert efficiently will be best positioned to outperform. For the remainder of the year, success will depend on disciplined pricing, strong follow-up, competitive positioning, and a willingness to respond quickly to market conditions.