Portland Metro 10th Lowest In U.S. Apartment Vacancies

The U.S. Census Bureau reports that the Portland/Vancouver /Beaverton vacancy rate fell from 4.0 percent in the first quarter of 2014 to 3.3 percent in the second quarter.

The Portland metro area had the 10th lowest vacancy rate among the top 75 U.S. Metropolitan Statistical Areas (MSAs).

Seattle-Tacoma-Bellevue, WA ranked #14 with at 4.4 percent, up 0.9 percent from the prior quarter.




MSA's with the lowest vacancy rates:

• Worcester, MA - 1.5%
• Springfield, MA - 1.7%
• Oxnard-Thousand Oaks-Ventura, CA – 2.2%
• Louisville, KY-IN - 2.5%
• Albany-Schenectady-Troy, NY - 2.7% (Tie)
• Milwaukee-Waukesha-West Allis, WI - 2.7% (Tie)
• Allentown-Bethlehem-Easton, PA-NJ - 2.9%
• Hartford-West Hartford-East Hartford, CT - 3.0%
• San Francisco-Oakland-Fremont, CA – 3.1%
• Bakersfield, CA - 3.2%
• Portland-Vancouver-Beaverton, OR-WA - 3.3%
  ...
• Seattle-Tacoma-Bellevue, WA – 4.4% (Tied for #14 with Honolulu, NYC)

MSA's with the five highest vacancy rates:

• Syracuse, NY - 15.7%
• Toledo, OH - 15.1%
• Akron, OH - 15.1%
• Richmond, VA - 13.9%
• Orlando, FL - 13.5%

The average national rental vacancy rate for Q2 2014 was 7.5% and was 0.7% lower than a year earlier. The rental vacancy rate has been fallen consistently since 2009. It is hovering around the lowest level since the first quarter of 2001. The U.S. high water mark for apartment vacancies was 11.1% in 2009.

Homeownership rates fell to 64.7%, the lowest level in 20 years.

Click here for the latest press release.

34-Units in Eugene! The Southgate: Convenient to U of O and Amazon Parkway

The Southgate Apartments features spacious units in an extensively renovated garden court community. The Southgate offers a unique opportunity to acquire an apartment supported by the growing university population.

The unit mix is balanced between spacious two-bedroom townhomes and oversized one-bedroom flats. The average unit size is very generous at 1,055 square feet.

Extensive interior renovations and exterior improvements were recently completed.

Southgate includes conveniences important to renters such as in-unit washer/dryers, reserved parking and additional storage. Residents enjoy a quiet, private courtyard.  The property features a sparkling seasonal pool as the focal point -- a rarity in Eugene. Click here to learn more.

Washington DC: How Is A Wave of New Supply Affecting The Market There?

Washington DC has had a huge wave of new apartments hit the market recently. Is what's happening there a harbinger for others?

Click here to read more.

Survey: U.S. Apartment Markets Continue Expansion

Apartment markets continued to expand in the second quarter of 2014, as growth accelerated in all four indexes in the National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. Market tightness, sales volume, equity financing and debt financing indexes all improved from the first quarter this year and marked the second quarter in a row with all above break-even.

Here are the top survey results for each of the six questions.

• 51%- Sales of apartment buildings are about the same
• 50% - Vacancies are lower and rents are going up more
• 56% - Financing is about the same as three months ago
• 52% - Mortgage borrowing is about the same with 37% saying now is a better time to borrow
• 39% - In the last six months, the urban share of new development has increased compared to suburban (25% said more suburban and 28% said it had stayed the same)
• 48% - There are more town center “urban suburban” style developments.

Read the full survey and results here.

Pit Bulls Find Shelter in Fair Housing Act

The roundup of it's Property Management Insider's top articles so far this year includes an incredible story about Pit Bulls and the Fair Housing Act.  Read More.

Portland Workforce Poised For 16% Growth 2012-2022

According to the Oregon Employment Department, Clackamas, Multnomah and Washington counties will add 136,700 jobs between 2012 and 2022 bringing total employment close to one million. That’s a 16 percent increase, slightly better than the state overall, which is expected to add 257,900 jobs for a 15 percent increase.

Private employment in the three counties is projected to grow 17 percent, led by construction at 29 percent. Specialty trade contractors and construction of buildings will likely do most of the hiring. Private educational and health services should grow 23 percent due to staffing demands in both private education as well as ambulatory (outpatient) and nursing health care.

Read the Full Story in the Portland Business Journal.

Five Reasons Apartment Occupancy Is Growing

Most people think that when a flood of new supply hits the apartment market, occupancy and effective rents will go down. That’s true in most cases, but not in the first half of 2014, according to Axiometrics research. Even though 180,000 units have come on line in the past year, with thousands more on the way in the third and fourth quarters, occupancy and effective-rent growth have been at their highest levels since almost the turn of the 21st century. Read more. 

Marijuana: What's A Landlord to Do?

Now that pot's legal in Washington state, what's a landlord to do?

HFO posed the question recently to legal expert Andy Hahs, who provided slides from a recent presentation on the subject. It includes a list of possible approaches for landlords.

REWIND!
Last August HFO sat down with Andy and conducted an interview about the subject. Here's what he had to say.



Questions? Give Andy a call at (503) 228-5626.

Metro Forecasts Portland Area Needs 7,000 New Apartments Annually 2010-2035 To Meet Demand

When considering the number of apartments under construction in the Portland metro area, a quick look at housing need forecasts by Metro are informative.

In 2012, Metro forecast housing in the seven county PMSA would need to grow by 175,316 multifamily units between 2010 and 2035 to keep up with population growth, equating to 7,012 units per year. The total number of multifamily units forecast to be needed within the urban growth boundary is 147,879 or 5,915 per year. The City of Portland will require an average of 3,966 units per year to meet expected demand.

Boundary Area	2010 Multifamily Households	2035 Multifamily HH Estimate	Total Increase	Annual Avg. Increase
Portland	104,897	204,050	99,153	3,966
Hillsboro	14,251	23,211	8,960	358
Beaverton	21,953	30,479	8,526	341
Gresham	18,243	25,656	7,413	296
Inside Urban Growth Boundary	236,346	384,225	147,879	5,915
Outside Urban Growth Boundary	47,872	64,185	20,713	828
Four-County Total (Clackamas, Multnomah, Washington & Clark)	284,218	459,534	175,316	7,012
Tri-County Total (Oregon)	240,746	395,348	154,602	6,184

Download Report.

HFO Selects Winner of its $300 Gift Card Giveaway!

HFO recently completed a survey of apartment owners and a winner of those completing the survey before July 3, 2014 has been selected! Find out who won!

More Apartments Announced for South Waterfront

The Portland Business Journal reports that the Zidell family plans two buildings on the South Waterfront, including an apartment building similar to the 118-unit Emery. Read more.

Quarterly US Apartment Rent Growth Hits 14-Year High

According to MPF Research, the U.S. apartment market made an impressive showing in 2nd quarter 2014. Occupancy jumped up to a seven-year high, even with newly built units hitting the market in large numbers. And quarterly rent growth reached a 14-year high.

Portland's rent growth was pegged at 2.3%, tied for the nation's 9th highest with Charlotte and Ft. Worth. Read more.