GlobeSt.com: Portland Rents up 12% as U.S. Apartment Rent Growth Sets New High

Growth continues to be dominated by metro areas in the Pacific Northwest and the Western lifestyle markets. Portland (12.0%), Denver (11.8%) and San Francisco (11.7%) all saw double-digit growth in the trailing 12 months. Read more. 




Meanwhile, MPF research reports U.S. Apartment Rent Growth Hit a New High in the 3rd Quarter

HFO Adds Principal Broker

HFO Investment Real Estate (HFO) is pleased to announce the hiring of Donna Brunner as Principal Broker.

With over 23 years of real estate experience, Brunner is well-versed in multifamily and commercial leasing, new development, and multifamily management. Her prior experience includes managing a portfolio of over 15 apartment communities and 1,000-plus units.

Mostly recently, Brunner spent nine years as Operations Manager for the Portland office of the nation’s largest real estate investment company.

“Donna brings a wealth of experience to our team,” says HFO managing director Spencer Marona. “Her background with real estate operations and ability to lead others is an integral part of our strategic growth.”

Before earning her Oregon real estate license, Brunner was licensed in New Jersey and Virginia.

Seattle Developer Plans 102-Story Apartment Skyscraper

The 102-story building which would be home to 1,200 apartments at 701 Fourth Avenue, would be the West Coast's tallest building and the eighth tallest in the country. The apartments would sit atop a 14-story podium made up of two floors of retail, six floors of office and six floors of hotel rooms. The proposal goes to an early design guidance meeting with city officials in November. Read more.  

Who's Hiring in Commercial Real Estate?

We are looking for a unique, energetic, intelligent and passionate individual to join our sales team. The right person will value the relentless pursuit of each clients' success. 

If you have ever considered a career as an investment sales broker and/or appreciate the benefit clients and customers receive from working with experts, give us a call. Click the image below the number to read the job description.

503.241.5541

Oregonian Cover Story: "Developers Can't Build Apartments Fast Enough"

From today's Oregonian:

Despite 22,000 new apartments coming on line in the metropolitan area since 2012, more than half in Portland proper, vacancies remain practically non-existent.

And according to some quoted in the article, Portland still remains a bargain compared to other West Coast cities. One source says:

"The portion of income Portlanders can expect to devote to housing has increased from 25 to 35 percent. Renters moving from major West Coast cities are used to paying 40 to 50 percent of their income for housing."

Read more.

Meanwhile, the question being posed by Metro government: "Is Portland the next San Francisco?" is being debated. Last Friday a Metro panel discussion on the subject was packed. A report of that hearing is here, and a 21-minute video was posted by Metro here.

City of Vancouver Passes Ordinances Changing Rental Notice Requirements Beginning Oct. 21

The Vancouver City Council has passed three new ordinances affecting rental housing. Those changes take effect October 21st and require the following:

1. 60-day notice period for no-cause evictions (an increase from the former 20-day notice requirement). For-cause eviction notices remain unchanged.
2. 45-day notices for rent increases of more than 10% (this is an increase from the previous 30-day notice requirement).
3. Landlords may not deny tenancy based on tenant's source of income, including public assistance, social security, retirement programs and vouchers.

Read more. 

On Monday September 15th, The Columbian editorial board published this editorial on affordable housing.

Landlords Question City of Portland Proposed Changes to Tenant Notifications

Landlords have responded less than a week after The Oregonian reported that Dan Saltzman is asking the city council to approve his plan to ensure all renters receive a 90-day notice for no-cause evictions and any rent increase over 10%.  

The Portland Tribune report quotes MultifamilyNW executive director Debrah Imse, who stated that tenant notice requirements are dictated by state landlord/tenant law. Saltzman plans to bring the issue before the City Council in October.

Will Mother-In-Law Units Ease Housing Issues? One Owner Says His Property Taxes Doubled

In its latest in a series of housing reports, local TV station KGW examines the significant number of Accessory Dwelling Units (ADUs) being approved, and encouraged, by the City of Portland. Read more.

Meanwhile, the Portland Tribune reports that one property owner who added an ADU had his property taxes doubled to $8,000 a year. 

More Than Weather Was Sizzling in Seattle This Summer

Seattle area rents have jumped over 10% in the past 12 months. In the third quarter of 2015 alone, rents in King and Snohomish Counties rose 3.1% to $1,451, or $1.74 per square foot.

King and Snohomish County, Washington appear poised to experience record-breaking apartment construction in 2015: 10,642 apartments are scheduled to open this year, several hundred more than the prior record of 10,056 set in 1989. An additional 13,000 units are slated to open in 2016 and 11,000 in 2017. Click here to read more.

Mayor's Proposed Demolition Fee Wouldn't Apply to Homes Removed for Construction of Multi-family

According to Willamette Week, Portland Mayor Charlie Hales' proposal to charge a fee for demolishing homes would not apply to homes in areas zoned for mult-family housing.

The fee is proposed to support a fund for affordable housing.  Read more.

Portland Metro Apartment Rents in the News - Again

It seems no matter where you look right now, everyone is reporting on rental trends in and around the Rose City.

The National Real Estate Investor has a story about "Apartment Rents Growing Faster Than Incomes."

“Across most markets, renters are paying a higher percentage of their incomes in rent,” says Luis Mejia, director of U.S. multifamily research with the portfolio strategy division of research firm CoStar.

The Portland/Vancouver metro area is no exception to rising rents. While The Mercury featured a story in last week's edition about Portland-area renter concerns, recent surveys have placed both Vancouver, Washington and Portland, Oregon as the nation's fastest growing rental income markets. 

A story published on KGW.com used data from Apartment List rentonomics which indicated that Vancouver's rental rates were rising faster than Portland.  The Apartment List research concluded that July 2014-July 2015 rent increases were highest in Vancouver, followed by Miami, Seattle, and Portland. The survey reports Vancouver rents increased an average of 9.5% a 2-bedroom apartment. 

Meanwhile, in a survey released in August by YardiMatrix, Portland apartment rents were reported to have grown in excess of 16% from August 2014 to August 2015 among the 107 U.S. markets tracked by the company.

Portland, San Francisco, Denver, Sacramento, Seattle, Orlando and Atlanta lead the pack

At this point, regardless of who you ask, all signals seem to be pointing to the fact that the fastest rising rents in the U.S. are right here in river city.

Portland City Council Slated to Consider Future Development of Pearl District Site, Adding Housing for 3,100 including 600 Affordable Housing Units

Portland Development Commission Preferred Site Plan

Future redevelopment of the 14-acres of land now occupied by the U.S. Post Office in the Pearl District could look something like this, according to the Portland Development Commission.

The City Council will consider a proposed funding plan in mid October. Development of the land would take place over nearly a decade, from 2019-2027.

Read more. 

Portland Mercury Article Highlights Renter Concerns

Last week, the Portland Mercury published a two-page article outlining concerns of some renters who have been evicted to allow for apartment property upgrades. Read the article.

In South Lake Union, Explosive Growth is Just Getting Started

South Lake Union Panorama -- Night

The incredible, ongoing change at the south end of Lake Union is about to continue! Thirteen towers are on track for construction at the south end of Lake Union, including two residential towers that have already been approved for construction. A total of 5,000 new units of housing are anticipated. Read more about the parade of skyscrapers now on their way. 

KGW Talks to Portland's New Housing Director About Growth

Northwest native Kurt Creager talked to KGW about how much housing prices will rise, what he's doing to make rents more affordable, and why the parking situation will only get worse. Read the story & watch the video here.

Are We Entering One of the Strongest Housing Markets in U.S. History?

by Spencer Marona, Managing Director

CoStar recently reported that the Mortgage Bankers Association (MBA) expects between 13.9 million and 15.9 million of additional households will be formed by 2024, projecting one of the strongest housing markets in U.S. history.

The MBA report, titled "Housing Demand: Demographics and the Numbers Behind the Coming Multi-Million Increase in Households," finds that surge in household formation, and expected related housing demand, will be driven largely by Hispanics, Baby Boomers and Millennial.

The implications multifamily industry are significant, according to the MBA. Some include:

• U.S. population expected to grow by 24 million over the next 10 years, increasing the demand for all types of housing
• 2.6 million additional renter-occupied households in 2024
• Baby Boomers will be a large portion of that growth with 3 million more renter households in 2024
• Millennials are expected to be a total of 2.7 million additional renter households.

More information can be found in CoStar's recently published article.