Monday, January 31, 2011

Wall Street Journal: Housing Woes Lead To Apartment Surge

"Falling home prices and lethargic sales have been bad news for homeowners, but a boost for one group of real-estate investors: apartment-building landlords.

"With millions of families switching from being homeowners to renters, apartment-building values have soared. Investor demand is so intense, prices of some properties are approaching values last seen in mid-2007.  Read the full article.

Monday, January 24, 2011

Rental Data Being Added to Experian Credit Reports

Experian, one of the three national credit bureaus, has announced that it is starting to include rent payment records in the credit reports of select consumers.

The company said that beginning last month it started including rent payment histories for some credit profiles. The company said the information should help people with thin credit files build their credit histories. At this time only positive rental information is being reported. Experian plans to begin adding negative data such as missed payments beginning in 2012. The number of consumers included is estimated to be in "the low millions." Read more at Multifamily Executive Online.

Thursday, January 20, 2011

Portland's Reputation as a Youth Magnet City Subject of New TV Show

Portland's Reputation as a "Youth Magnet City" (we call them "renters") in the coming decade has been written up by publications including the Wall Street Journal last year. Now it's the target of the a comedy series: "Portlandia" which premieres on the IFC Cable Network this month.

Screening Tenants Without Violating The Law Regarding Consumer Reports

Choosing a tenant to rent one of your properties is an important and difficult decision. Obtaining applicants’ consumer reports can help you make an informed choice when accepting or denying housing applications. However, you need to take care when using this valuable resource. The Fair Credit Reporting Act (FCRA) regulates the use of consumer reports, in order to protect consumers. It is important that you comply with the FCRA to avoid costly penalties and lawsuits. Click here to download the USI Risk Insights one page informational flyer. Courtesy of USI Northwest Insurance, your risk management partner.

CoStar Predicts Jump In Apartment Development This Year

This week the CoStar group reported "More multifamily projects [are] expected to come out of the ground in 2011-12." The 22,536 units forecast by CoStar to be added to the nation's apartment supply in 2011 is expected to spike up to 94,588 units in 2012 and just over 109,000 units in 2013 -- increases of 320% and 384%, respectively -- over the current year. By 2015, CoStar expects that development will ramp up to its 10-year historical average. Read the full story.

Thursday, January 13, 2011

Sold! Vera Cruz in Gresham - 12 Units on SE Division

The 12-unit Vera Cruz Apartments in Gresham have sold for $625,000. The sales price represents $52,083/unit and $63.13 per square foot. Constructed in 1969, the apartment complex contains twelve (12) 2-bed 1-bath units. Average rent per square foot is currently $0.73. These clean units include hardwood flooring.  HFO represented the seller in this all-cash transaction.

Wednesday, January 12, 2011

Semiconductor Jobs Switch From Japan to Gresham

ON Semiconductor has announced that it will close two recently acquired facilities in Japan and move the work to its flagship Gresham factory sometime next year. 

ON Semiconductor acknowledges new jobs are coming but won't say yet how many new jobs that will be created over the next 18-24 months.  The factory currently employs about 500. This increase in manufacturing jobs in Gresham comes on the heels of an announcement by Solexant last July that will add about 100 jobs in a new plant that will make thin-film solar cells. Read more at Oregon Live.

Monday, January 10, 2011

Wall Street Journal: The Case For Renting

Mortgage rates are near historic lows and homes are more affordable than they have been in memory. Yet some five years after the housing bust began, many people who could easily afford to buy are still choosing to rent. Read the full story.

Thursday, January 6, 2011

Wall Street Journal "For Apartments, A Hot Winter"

"According to Reis data, the national apartment-vacancy rate was 6.6% in the fourth quarter, down from 7.1% in the third quarter and 8% in the fourth quarter a year ago... Effective rent, the amount paid after discounts, rose 0.5%." Read the full Wall Street Journal story.

Monday, January 3, 2011

Multifamily Construction Projects Slated For Portland

For illustrative purposes.
Through November of 2010, there were only 730 apartment unit building permits -- making 2010 the slowest in the Portland area since the 1970s. But now with the 2nd lowest multifamily vacancy rate among major U.S. areas, that may turn around. Click here to read more in the Daily Journal of Commerce.