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%.
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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%.
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*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.
Friday, June 9, 2017
Thursday, June 8, 2017
Oregon Senate to Vote on Bill that Could Raise Property Taxes on New & Renovated Properties in Multnomah County
Wednesday, June 7, 2017
Tuesday, June 6, 2017
Attention Washington Residents and Owners: State Considers 7% Capital Gains Tax, B&O Tax Increase, and Graduated Real Estate Taxes
1. New State Capital Gains 7% Tax:
- Sale of real-estate, commercial, industrial and residential rental (exempts your home, certain pensions, agricultural land and property)
- Sales of stocks and bonds, gold and silver, other precious metals
- IMPACTS: Sale of business, real-estate property and stocks and bonds, etc. It’s taxing your investment pension.
- 1.50: Services: property management, realtors, architect, accounting, window washers, legal, janitorial, and engineers, etc.
- 0.471: Retailing: contractors, restaurants, clothing, Costco, Nordstrom, etc.
- 0.484: Subcontractors, wholesale and manufacturing, etc.
- 1.63: Private Nontribal Gambling: “Contest of chance” (card rooms)
- 0.75: Selling price is less than 250K
- 1.28: Selling price is $250K to $1 million
- 2.0: Selling price is $1 million to $5 million
- 2.5: Selling price is $5 million and above
You can locate your lawmaker at the following “District Finder” link:
You can find their contact information at the following:
Courtesy: Manufactured Housing Communities of Washington 1-(800) 345-5608
Check out this episode!
Friday, June 2, 2017
Thursday, June 1, 2017
Wednesday, May 31, 2017
Read the full report.
Friday, May 26, 2017
[Source: U.S. Census Bureau]
Wednesday, May 24, 2017
Tell the Oregon State Legislature to vote NO! Contact numbers and email addresses below...
Senate President Peter Courtney
Senate Majority Leader Ginny Burdick
This week: Portland's budget, school district levy, Oregon's robust economy, and where, oh where are the inclusionary zoning projects? We return after Memorial Day on June 6th.
Tuesday, May 23, 2017
The Better Housing by Design (BHD) project aims to improve the design of multifamily housing outside of the central core of Portland. It covers all multi-dwelling zones (R3, R2, R1, and RH), and aims to strengthen requirements for outdoor spaces, encourage a range of housing that includes "missing middle" structures, and improve walkability. Bureau of Planning and Sustainability staff are expected to release the final Code Concept Report in the Summer of 2017. Read more.
Thursday, May 18, 2017
Wednesday, May 17, 2017
Supporters of the new PPS bond point out that Portland school buildings are 77 years old on average, and many have health and safety issues including high lead levels. The bond will provide the funding needed for projects such as improving water quality, removing asbestos and lead-based paint, improving fire alarm and sprinkler systems, and ADA/accessibility improvements. In addition, Benson, Madison, and Lincoln high schools and Kellogg middle school will be rebuilt and renovated. Read more.
Tuesday, May 16, 2017
This week: Portland Mayor says housing trumps need for parking; conflict continues in the Eastmoreland neighborhood and the Portland Development Commission is now Prosper Portland. Our podcast returns next Weds 5/24.
Friday, May 12, 2017
Wednesday, May 10, 2017
Tuesday, May 9, 2017
Check out this episode!
Monday, May 8, 2017
Thursday, May 4, 2017
Seattle Vacancies Nation's 3rd Lowest
Census estimated Seattle-Tacoma-Bellevue's vacancy rate at 1.9% vacancy rate, making it the nation's third lowest. Metro areas with lower vacancies than Seattle were Sacramento (1.2%) and Cape Coral-Fort Myers, Flordia (1.8%).
After Seattle (#3) the remaining lowest vacancy rates were:
Allentown-Bethlehem-EAston, PA-NJ (3.0%)
Charlotte-Concord-Gastonia, NC-SC (3.1%)
Los Angeles-Long Beach-Anaheim, CA (3.6% (TIE)
San Diego-Carlsbad, CA (3.6% - TIE)
Salt Lake City, UT (3.8%)
Grand Rapids-Wyoming, MI (3.9% - TIE)
Portland-Vancouver-Hillsboro, OR-WA (3.9% - TIE)
Average National Rental Vacancy Rate
The average national rental vacancy rate for Q1 2017 was 7.0 percent for multifamily dwellings of five or more units -- the same as one year earlier. Vacancy rates remained lowest in the western U.S. where it declined from 5.1 to 4.7%.
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U.S. Homeownership Rate Continues to Fall
U.S. Homeownership rates have fallen from a recent high of 65.1% at the end of 2013 to an estimated 63.6% in Q1 2017. Homeownership rates in the Western U.S. has been on the upswing since reaching a 26-year low during 2016. The current homeownership rate in the west crept up 0.3% over the past year.
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Wednesday, May 3, 2017
In this week's episode: Oregon economist Josh Lehner says he expects homeownership to grow relative to renting in the years ahead; a new expert report says inclusionary zoning has a near zero effect on increasing affordable housing.
Tuesday, May 2, 2017
- Requiring affordable housing projects to be approved in 100 days
- Blocking cities from denying housing development applications due to failing to meet discretionary standards
- Prohibiting local governments from adopting standards that would discourage needed housing
- Stopping local governments from reducing density of housing applications if the application meets zoning requirements
- Requiring local governments to allow detached affordable housing on properties zoned for non-residential places of worship