Key Takeaways
- Condo sales in downtown Portland increased 14% in Q1 2025, driven by empty nesters downsizing from suburban homes.
- New demand has revitalized urban condo developments, featuring high-end finishes and luxury amenities.
- Multifamily investors are re-evaluating condos as a profitable segment, considering repositioning and new-build pre-sale opportunities.
Portland, OR — In a surprising turn, Portland’s long-sluggish condo market is showing fresh signs of life, thanks to a growing wave of empty nesters trading suburban sprawl for urban simplicity.
According to a new report by the Oregon Association of Realtors, condo sales in downtown and the Pearl District rose 14% in Q1 2025 compared to the same period last year.
This bump marks the first sustained upward trend in over three years and is being driven largely by affluent baby boomers cashing out of larger homes in West Linn, Lake Oswego, and Beaverton.
Why Empty Nesters Are Powering a Downtown Comeback
Today’s downsizers aren’t just looking for smaller spaces—they’re targeting walkable neighborhoods with cultural amenities, dining, and minimal maintenance.
Developers are taking notice, pivoting new condo builds to feature high-end finishes, concierge services, and amenities typically found in luxury apartments.
Portland Condo Market Stats – Q1 2025:
- Sales Growth: +14% YoY
- Median Condo Price: $426,000
- Inventory Decline: -12.6% YoY
- Top Submarkets: Pearl District, Goose Hollow, South Waterfront
Implications for Real Estate Investors
Multifamily investors have largely favored build-to-rent and suburban models over condos since 2020, but the tide may be turning.
This demographic-driven shift opens the door for repositioning dated units, converting underused apartment buildings to condo ownership, or acquiring new-build pre-sales at attractive price points.
For buy-and-hold investors, the condo resurgence may also improve rental market conditions in adjacent areas by drawing long-term owners out of rental competition.
Assessment
Portland’s condo market revival isn’t just a one-off—it’s a demographic wave investors should be watching closely.
As urban living becomes more desirable for retiring homeowners, the opportunity to rethink condo strategies is wide open.
With downtown slowly regaining its appeal and demand shifting back toward homeownership in walkable urban zones, multifamily investors have new ground to explore, both in resale and new development sectors.
5 Responses
Interesting boost, but is it sustainable? What happens when these empty nesters decide to downsize or relocate to sunnier climates?
Interesting trend, but arent we overlooking the impact of this sudden shift on the affordable housing crisis in downtown areas? Just a thought.
Interesting read, but arent we ignoring the impact of potential economic downturns on these empty nesters ability to maintain such investments?
Interesting but arent we overlooking the impact on the local community? What about affordable housing for the younger generation? Seems short-sighted to me.
Short-sighted? Perhaps. But progress requires some sacrifice. Affordable housing isnt the only concern.