Tuesday, July 28, 2015
For the past two years, Portland metro has ranked consistently among the nation's lowest vacancy rates and currently ranks at 10th lowest.
Seattle-Tacoma-Bellevue ranked 13th with Q2 vacancies tightening to 4.0 percent, down 1.0 percent from the prior quarter.
The nation's 10 lowest vacancy rates were as follows:
- Worcester, MA - 1.4%
- Cape Coral-Ft Myers, FL - 2.2%
- San Diego/Carlsbad, CA - 2.3%
- Providence-Warwick, RI-MA - 2.4%
- Grand Rapids-Wyoming, MI - 2.5%
- Boston-Cambridge-Newton, MA-NH - 2.6%
- Los Angeles-Long Beach-Santa Ana, CA - 3.0%
- Raleigh, NC - 3.1%
- Allentown-Bethlehem-Easton, PA-NJ -3.4%
- Portland-Vancouver-Hillsboro, OR/WA - 3.5%
|U.S. Median Asking Rents: Click to enlarge|
|U.S. Rental Vacancy Rates by Region: Click to enlarge|
U.S. Homeownership Rate Still Falling
U.S. Homeownership rates have fallen from at recent high of 65.1 percent at the end of 2013 to an estimated 63.5 percent in Q2 2015, the lowest level in 22 years.
Homeownership rates in the Western U.S. remained flat at 58.5 percent, the lowest level in 24 years.
|Q2 2015 Homeownership Rates by Region: Click to enlarge|
|Q2 2015 Homeownership Rates 1995-2015: Click to enlarge|
[Note: The US Census vacancy estimate is 0.39% higher than the vacancy rate of 3.09% reported by MultifamilyNW in its Spring, 2015 Apartment Report.]
Thursday, July 23, 2015
Click to Read More
"To be successful, you need to go beyond the metro area..."
In an informative video interview posted on Multi-Housing News Online aka MHN Online, three multifamily experts discuss what they believe to be the brewing of a perfect storm for the apartment market.
- White-collar graduate segements
- Walkability and access to transit
- Creating places that will attract capital
- Where rents will increase over time
- Top secondary markets to invest in
- Secondary markets at risk for too much supply
- Property that is relevant to specific employers or a specific school
- Intellectual capital
- Anywhere that is two hours from a downtown market
Wednesday, July 22, 2015
Thursday, July 16, 2015
The Downtown Seattle Associaton recently published their mid-year development guide stating there has not been this much development in Seattle in more than a decade. There are 106 projects currently under construction, about to break ground or completed since January of 2014, including 10,425 apartment units.
In addition, a city record was broken last week with the $240 milion dollar sale of a new, luxury, high-end apartment building, Premiere on Pine. Holland Partner Group, which developed the 40-story project just west of the Paramount Theatre sold the property to Heitman, a global investment management real estate firm based in Chicago for the record price of approximately $622,000 per-unit.
Monday, July 13, 2015
MPF Research reports today that metros in the Western region of the U.S. continue to dominate the apartment market leaderboard, including a few new additions that had been lagging.
- Oakland, CA - 11.8% growth
- Portland, OR - 11.3% growth
- Denver/Boulder, CO - 10.2% growth
- San Jose, CA - 10.0% growth
- San Francisco - 9.9% growth
- Seattle, WA - 8.4% growth
- Sacramento, CA - 7.6% growth
- San Diego, CA - 7.5% growth
Thursday, July 9, 2015
Going into the year, most estimates called for rent growth levels to ease. Halfway through the year, the exact opposite has happened.
While rents in the Northeastern and Midwestern part of the U.S. have risen at a rate of 3.3%, effective rents in the South have grown 4.1% and in the West, rents are up a whopping 7.8% from the second quarter of 2014.
Rents grew the fastest in apartment markets in the West, topped by Oakland, Calif.; Portland, Ore.; and Denver-Boulder, Colo. But rents are also growing quickly in Western markets that have taken years to heal from the housing crash.
Watch the full report in this video from MPF Research.
Wednesday, July 8, 2015
Catch up on the latest information in the Portland, Oregon metro apartment market in our recent apartment market update for multifamily investors.
Old industrial buildings being converted into creative office space, new trendy restaurants and breweries opening up like they are going out of style, parking spaces vanishing in the blink of an eye and hundreds of apartment units under development are the reality in Portland's Central Eastside Industrial District. What does the future hold for Portland's mecca for art and design?
Part of that answer may become clearer with Portland's City Council vote on a blueprint for what the West Quadrant may look like in 2035. This includes the Pearl District, Goose Hollow and South Waterfront neighborhoods.
Read more about this and five "things" to know about Portland's vision for the Central Eastside on Oregon.Live.
Monday, July 6, 2015
Seattle Times Articles:
Apartment rents in King, Snohomish counties jump 5 percent in 3 months. July 2, 2015
Rules preserving city views set up clash among towers competing to be first, biggest. July 2, 2015
Friday, July 3, 2015
"As I look back at past Fourth of July holidays, I think about the memories created with family and friends. The picnics, fireworks displays and flags flying high always remind me of how grateful I am for the freedom we're celebrating and for the people who have helped our great nation become what it is today. Have a wonderful holiday," - Greg Frick, Partner with HFO.
I wanted to pass a message that Greg had shared with the HFO team and thank all (past and present) who have proudly served our country. Our Independence Day celebration is due to your dedication and service to protect our country. Thank you.
On behalf of HFO, we hope everyone has a safe and fun 4th of July weekend.
Spencer Marona, Managing Director with HFO.
One Thousand Eighth Avenue is a 356-unit, 66-year-old apartment complex on Seattle's First Hill. The exterior of the property pales in comparison to the contemporary, interior finishes. Sequoia Equities, a Walnut Creek, California investment company probably felt the same way. The Puget Sound Business Journal reported Sequoia Equities purchased the assett for $92.9 million, a 52 percent increase from what the seller purchased it for three years ago.
What was the driving factor for dramatic increase in price? Rising rents...
Puget Sound Business Journal Article:
Rising rents drive value of Seattle 'trophy' apartment complex up 52 percent.