This week: a Portland Landlord slams Commissioner Eudaly for violating City of Portland social media policy and blocking him from her public Facebook page; the Portland Tribune reports that more than 15% of the cost of new apartment buildings comes from City of Portland fees and development charges.
Wednesday, October 18, 2017
Monday, October 16, 2017
Bhajaria says it wasn't until he threatened the city attorney with a lawsuit that he was unblocked and allowed to comment. The opinion piece states that while Eudaly and mayor Ted Wheeler claim to embrace diversity, they met privately with "mostly white liberals" who had not registered as lobbyists, and that these groups were "allowed a seat at the table in almost every discussion around housing policy in Portland." Read more.
Bhajaria's previous Op-Ed in opposition to the ordinance requiring payment of relocation fees to renters appeared in the Oregonian on Sunday, February 25, 2017.
Wednesday, October 11, 2017
Tuesday, October 10, 2017
This week: Chloe Eudaly's First Right of Refusal ordinance for renters would likely apply to all types of rental housing; Portland developers propose to build up to 2,500 units on Portland's waterfront, including 500 affordable units, in exchange for increased height limits.
Thursday, October 5, 2017
Tuesday, October 3, 2017
This week: Portland Commissioner Chloe Eudaly wants to give tenants first right of refusal to buy apartment buildings before they hit the market, and Mayor Ted Wheeler to ask for an 18-month extension of Portland's housing emergency, this time requiring agencies to figure out when to end it.
Wednesday, September 27, 2017
Bombshell: Chloe Eudaly to Propose Tenant "First Right of Refusal" to Purchase Apartment Buildings Listed for Sale
- The Housing State of Emergency will be extended by 18 months, until April 4, 2019, unless the City Council chooses to extend or terminate it
- Affordable housing projects will be subject to Type IIX rather than Type III design review
- The Portland Housing Bureau and Joint Office of Homeless Services will decide what criteria must be met to end the Housing State of Emergency within 180 days
Tuesday, September 26, 2017
This week: The Tribune turns a spotlight to the City of Portland's dysfunction; hurricane disasters could result in a construction slowdown due to scarcity of workers and increasing materials costs; and six months in -- the inclusionary zoning requirement's impact on apartment construction applications in the City of Portland.
Monday, September 25, 2017
In an interview with HFO partner Greg Frick, Multifamily NW spokesman John McIsaac relates the bureaucratic difficulties facing developers in the City of Portland. Estimates are that 50,000 new apartments will be needed by 2030 to accommodate the nearly 100 people moving to the city every day.
Wednesday, September 20, 2017
Tuesday, September 19, 2017
This week: the Metro council considers new taxes to help pay for affordable housing outside the city limits of Portland; The U.S. Census reports Oregon's median household income rose 6.2% in 2016, after decades of trailing the rest of the United States.
Monday, September 18, 2017
Friday, September 15, 2017
Thursday, September 14, 2017
Tuesday, September 12, 2017
This week: The Portland Unreinforced Masonry Policy Committee holds a final public meeting October 4th and then heads to City Council; Vacancy rates for studios and one-bedroom units are increasing; national economics professors argue that restrictive land use policies are adding drag to the national economy.
Monday, September 11, 2017
Thursday, September 7, 2017
Wednesday, September 6, 2017
This week: lender to the rescue for Portland's pending seismic upgrade requirement? Cap rates continue to decline despite an increase in interest rates.
Friday, September 1, 2017
Wednesday, August 30, 2017
Wednesday, August 23, 2017
Monday, August 21, 2017
-Deferment of development fees or long-term loans for developers building homes for families that make less than 125% area median income
-Tiered system for development fees based on home size
-Measuring density by radius rather than lot-by-lot
-Allowing four-plexes to be built in single-family neighborhoods
-Altering the requirement for open space when a home is built near a park
-Raising allowable lot coverage for multifamily housing from 40% to 60%
Tuesday, August 15, 2017
Landlords are still allowed to screen applicants on employment, credit scores, income ratios and other criteria.
Read a statement on the City of Seattle website.
News Reports: City of Portland Plans to Extend Relocation Assistance Following Landlords' Judicial Appeal
The news comes on the heels of two Portland landlords filing an appeal of a recent judges' ruling allowing the relocation assistance.
This week: The City of Portland considers special tax breaks for projects approved before inclusionary zoning took effect; Mayor Ted Wheeler criticized for lack of action on affordable housing initiatives; and Portland's relatively low rent-to-income cost average.
Monday, August 14, 2017
As of the second quarter, Portland's rent-to-income ratio is just a shade under 25%, at 24.96%. The average income in metro Portland is about four times average rents. That is higher than some places, such as Raleigh at 18.77% or Austin at 21.53%, but a lot less than other markets, and less than the national average of 28.99%.
The highest rent-to-income ratio in the country is New York, at 51.33%. Other pricey markets include LA at 42.95%, San Francisco at 38.57% and San Diego at 33.28%. Among major West Coast markets, Portland has the lowest of all rent-to-income ratio.
Source: August, 2017 report from CBRE.
Wednesday, August 9, 2017
In this week's news: REIS announces the national vacancy rate; streamlining Portland's design review; affordable housing bill proposed in U.S. Senate.
In an interview with HFO partner Greg Frick, Portland attorney Andy Hahs discusses the 2017 legislative session and Portland's relocation assistance program, which is likely to be modified and extended this year by Portland's City Council.
Friday, August 4, 2017
Landlords were previously provided with 60 days' notice on which units would be inspected. Now they will receive a 60 day notice of pending inspection and a 10 day notice of the exact day, but they will not know which units will be inspected.
Previously, landlords could hire a private inspector if they didn't want the city inspector to conduct the inspection, but landlords weren't required to provide the resulting written report. The rules will now require inspectors turn over the resulting report to the city.
Thursday, August 3, 2017
- The state and most counties offer a 60-day appeal window, but some only offer 30 days.
- Your property has significant deferred maintenance or capital needs
- Your property has construction defects
Portland will remain among the highest income growth for multifamily in 2017, even as vacancy rates increase. Freddie Mac estimates Portland gross income will increase by 5.7% with a year-end vacancy rate of 5.1%.
Download the full mid-year report here.
Yardi forecasts that as that new supply is absorbed, occupancy rates are likely to fall, especially in construction-heavy submarkets like downtown Portland and Austin's Hyde Park, which have seen occupancy decline by more than 3% in the past year.
Yardi expects the second half of 2017 to have slow rent growth the second half of 2017 with increases more in line with wage growth and increases in supply reducing occupancy. Occupancy rates in Portland and Austin have fallen as much as 80 basis points, according to Yardi.
The company forecasts effective annual rent growth in Portland this year will be 2.5%.
A mid-year report by Fredie Mac Multifamily Research Group forecasts Portland's gross rent growth at 5.7% for 2017, with an end of year vacancy rate at 5.1%.
Tuesday, August 1, 2017
Seattle's Vacancy Rate Jumps 2.8%
Census estimated Seattle-Tacoma-Bellevue's vacancy rate has also increased the same amount -- 2.8% in the past three months -- from 1.9% to 4.7%.
The nation's lowest vacancy rates:
Allentown-Bethlehem-Easton, PA-NJ (1.2%)
Fresno, CA (2.2%)
Grand Rapids-Wyoming, MI (2.7%)
Jacksonville, FL (3.2%)
San Jose-Sunnyvale-Santa Clara, CA (3.5%)
Syracuse, NY (3.5%)
San Diego-Carlsbad, CA (3.6%)
Buffalo-Cheektowaga-Niagara Falls, NY (3.7%)
Los Angeles-Long Beach-Anaheim, CA (3.8%)
Worcester, MA (3.8%)
Average National Rental Vacancy Rate
The average national rental vacancy rate for Q2 2017 was 7.3 percent for multifamily dwellings of five or more units -- up 0.6% from one year earlier.
Year-over-year vacancy rates in the western U.S. have climbed from 4.9% to 6.0%.
|Click to Enlarge|
U.S. Homeownership Rate Increases
After falling to a 26-year low last year, homeownership rates have been increasing. The current homeownership rate in the West has increased the past 12 months by 1%.
|Click to Enlarge|
*The margin of error for the Greater Portland MSA is 2.9%
This week: housing shortage to possibly worsen by 2030; developers underbuilding to avoid Portland IZ rules; Clark County tax appeals due 8/7.
Monday, July 31, 2017
Thursday, July 27, 2017
Wednesday, July 26, 2017
Meanwhile, five years into a similar project, the City of Portland has spent $12 million and it is expected to spend at least $1.6 million more. Portland fired its original vendor -- Sierra Systems of Vancouver, B.C. -- last fall. Local news reports indicate costs are expected to climb even higher. Officials hope to implement the Portland system by the end of 2018.
Note: This story was updated July 27 to include information contained in a July 26th report by the Daily Journal of Commerce which appeared following this posting.
- Outdated zoning laws
- Unnecessary land use restrictions
- Arbitrary permitting requirements
- Inflated parking requirements
- Environmental site assessments
Tuesday, July 25, 2017
This Week: Low unemployment and lack of construction workers; city of Portland plans to renew the relocation assistance program this October.
Monday, July 24, 2017
The upshot: We’ll have to build 4.6 million new apartments between now and the end of 2030 to keep up with growing apartment demand—or risk exacerbating today’s existing housing shortage. Read more.
Wednesday, July 19, 2017
Tuesday, July 18, 2017
This week: Portland's relocation ordinance revisions; water bills to increase; for whom the driving tolls (it tolls for thee).
Friday, July 14, 2017
Thursday, July 13, 2017
Tuesday, July 11, 2017
Rent control remains banned in Oregon -- for now; City of Portland relocation fee ordinance withstands legal challenge.
Monday, July 10, 2017
Thursday, July 6, 2017
Friday, June 30, 2017
Thursday, June 29, 2017
Wednesday, June 28, 2017
The sale represents a price of $137,288 per unit and $116.34 per square foot. Read more.
Tuesday, June 27, 2017
Check out this episode!
Monday, June 26, 2017
Friday, June 23, 2017
On June 22, Crowell presented the Council with a new plan, which incorporates input from the local neighborhood. The new plan eliminates two units, reduces the height of the building, and increases setbacks from neighboring properties. In response, the City Council expressed concerns that he didn't make enough changes, while also arguing that the changes should have gone before the Design Commission prior to being presented to City Council. The Council plans to continue the hearing August 9th, over a year and a half after the developer first requested a pre-application conference in January 2016. Read more.
Thursday, June 22, 2017
On the tenant protection side, Monroe proposes:
- Limiting rent increases to once per year
- Requiring leases be a minimum of 6 months
- Requiring landlords to notify tenants at least 90 days before the end of a lease of a rent increase, or of the intention not to renew a lease
- Requiring tenants to inform landlords of plans to stay or move 45 days prior to the end of a lease
Monroe also proposes limiting the situations in which relocation costs are paid, and removing a ban on no-cause evictions. His proposed changes include:
- Landlords with more than 5 units would only be required to pay relocation costs if evicting 50% or more of tenants in a multifamily complex in the first year after the landlord has purchased the property
- Landlords with fewer than 5 units would not be required to pay relocation costs
John DiLorenzo of More Housing Now supports Monroe's amendments, arguing that they would target bad actors while still giving most landlords the option to use no-cause evictions when necessary. Read more.
Wednesday, June 21, 2017
Tuesday, June 20, 2017
Year-to-date rent growth through May is pegged at 2.97%. Read more.
This week: It's the economy -- higher interest rates, Oregon unemployment reaches a new record low and Amazon will create 1,500 new jobs in Troutdale by next summer.
Thursday, June 15, 2017
Wednesday, June 14, 2017
Tuesday, June 13, 2017
This week: Lawmakers in Oregon and Washington consider real estate tax increases; Oregon's rent control saga; Amazon to bring 1,500 new jobs to Troutdale; wages vs. rent; and across the country - slowing rent growth.