The latest news of interest to multifamily owners of apartment buildings in Oregon and Washington. Build Your Legacy with HFO.
Saturday, June 30, 2018
Sold! 19 New Units in SE Portland, Oregon
HFO represented a buyer who was actively looking for new construction projects. We were able to identify and negotiate the sale of this transaction, working through some management challenges with the company involved in lease-up. HFO helped solidify and verify an operating budget without historical operating numbers. For more details on this sold listing call an HFO broker at 503-241-5541.
Thursday, June 28, 2018
Sold! 16 Units in Newberg, Oregon

HFO was hired to market this property for sale on a tight timeframe. HFO’s strong marketing efforts and extensive knowledge of the submarket and active buyers enabled HFO to complete the sale in under 30 days—a win/win for all parties. For more information on this transaction call an HFO broker at (503) 241-5541.
Report: Development Pipeline in Seattle & Portland Risks Short Term Oversupply; Long-Term Balance?
Metro
|
Apartment Supply 2-years
|
Apartment Demand 2 years
|
2-year Supply Growth %
|
2-year Demand Growth %
|
Seattle
|
23,197
|
9,695
|
10.0%
|
4.4%
|
Portland
|
8,438
|
4,665
|
5.8%
|
3.4%
|
|
|
|
|
|
Metro
|
Apartment Supply 5 years
|
Apartment Demand 5 years
|
5-year Supply Growth
|
5-year Demand Growth
|
Seattle
|
33,041
|
22,024
|
14.3%
|
10.0%
|
Portland
|
10,032
|
10,219
|
6.8%
|
7.3%
|
Tuesday, June 26, 2018
Affordable Oregon: Portland Is the Most Expensive Place to Build in the Metro Area
Monday, June 25, 2018
Multifamily Marketwatch Podcast - June 25, 2018
Check out this episode!
Wednesday, June 20, 2018
Harvard JCHS Releases State of Housing Report for 2018
- Home-ownership rates for young adults and black households are near 30 year lows
- Vacancy rates are lowest for Class C apartments, and highest for Class A apartments
- Nearly 50% of renters nationwide are cost burdened
- Multifamily starts were down 9.7% in 2016-17, while completions were up 11.3%
- Median home prices in Seattle, Portland metro areas are approximately 5-7.9 times greater than incomes
- Oregon and Washington are experiencing high levels of domestic in-migration of Millennials
- The national rental housing stock is shifting to higher-cost units
- Apartment properties are appreciating faster than single family homes
Portland City Council Approves New Short-Term Rental Fees
Monday, June 18, 2018
Multifamily Marketwatch Podcast - June 18, 2018
This week: The Portland City Council puts off for another year a vote on seismic retrofit requirements; The National Multifamily Housing Council reports that over 30 percent of the cost of multifamily development is due to governmental regulation; and the Oregonian editorial board questions whether Metro's plan to place a $652 million affordable housing bond on the November ballot is enough to make a difference in the housing crisis.
Thursday, June 14, 2018
Study: More than 30 Percent of Multifamily Development Cost Attributable to Regulation
Apartment and condo development can be subject to a significant array of regulatory costs, including a broad range of fees, standards and other requirements imposed at different stages of the development and construction process. However, until now there had been no previous research done to analyze the extent of this regulation. This joint research effort surveyed NAHB and NMHC members to quantify how much regulation exists and how much it is adding to the cost of developing new multifamily properties.
Breaking down the government regulation costs showed that an average of 7 percent of regulatory costs come from building code changes over the past 10 years, 5.9 percent is attributable to development requirements (such as streets, sidewalks, parking, landscaping, and architectural design) that go beyond what the developer would ordinarily provide, and 4.2 percent of the costs come from non-refundable fees charged when site work begins.
“The home building industry is one of the most highly regulated industries, and the multifamily sector is particularly subject to these obligations,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “Housing affordability is a huge issue throughout the county, and this new research only further illustrates how the layers of excessive regulation translate into higher rents and reduced affordability for consumers.”
“The current regulatory framework has limited the amount of housing that can be built and increased the cost of what is produced,” said NMHC President Doug Bibby. “At a time when states and localities are struggling to address housing affordability challenges, public and private stakeholders should work together to streamline regulations and take the steps necessary to expand housing in communities across the country.”
Although local governments generally have authority for approving the development and adopting building codes, state and federal governments are increasingly becoming involved in the process and layering on additional levels of fees and regulations.
Developers can almost certainly expect average costs to be higher now or in the near future due to the effect of recent regulations that went in place at the end of 2017, such as the new Silica Rule. Further, the survey does not account for other price-influencing factors such as the effects of recent tariffs on building materials, or the extent to which local jurisdictions empower citizens to oppose multifamily development in their communities.
Read the full document.
Portland City Council Punts Mandate for Seismic Retrofits -- Another Year of Study
In the meantime, city staff were directed to study and return in September with a recommendation on adopting an ordinance requiring URM buildings to post placards that they may be unsafe during a seismic event. The council discussed the following language: "This is an unreinforced masonry building. Unreinforced masonry buildings may be unsafe in the event of an earthquake." If that language is adopted in September the signs would be required to be posted by March, 2019.
The city voted to separate churches from other buildings and to set up a separate committee to study church and other nonprofit needs.
The requirement of securing walls to floors was tabled pending further study by the committee, which will be required to report back to the City Council in six months, and the ordinance will be voted on again in one year. The committee was also directed to work to find ways to finance any required retrofits.
Public buildings and schools remained a top priority on the council's agenda for retrofit requirements.
Watch the council meeting:
June 13 - AM Session - Timestamp 3:03
Compelling testimony from local Pastors.
While not entirely satisfied with the outcome, the group Save Portland Buildings was pleased owners were able to "impact and shine a light on the issues by exposing conflicts of interest and lack of representation."
Read the Oregonian story.
Wednesday, June 13, 2018
The Potential For Earthquake Damage in Portland: Another Opinion
Federal Reserve Raises Benchmark Interest Rate for Second Time This Year
Tuesday, June 12, 2018
Wheeler Defends High Price of New Affordable Housing Bond Purchase
Hearing & Vote on Portland Seismic Retrofit Requirements is Tomorrow, June 13 at 10 am
Read more at the City of Portland website.
Read more at Save Portland Buildings website.
Portland's Better Housing By Design Public Hearing is Today @ 5 pm
- Greater housing options and affordability to meet more housing needs.
- Outdoor spaces and green elements for children to play, gardening and outdoor gatherings.
- Building design that helps create pedestrian-friendly streets and respects neighborhood character.
- East Portland design standards and street connections that respond to the area’s distinct.
- The Commission wants to hear what community members like about the proposals and think could be improved about the proposed zoning changes for higher density housing development.
Project staff will be on hand starting at 4 p.m. to help people sign up to testify.
- Proposed Draft Summary, 8-page summary of the major proposals
- Volume 1: Staff Report, summary and analysis of the draft Multi-Dwelling Zoning Code and Map amendments
- Volume 2: Zoning Code Amendments, draft Multi-Dwelling Zoning Code and Comprehensive Plan text and commentary
- Volume 3: Additional Zoning Amendments, additional code amendments updating other zoning code chapters, providing consistency with the core amendments in Volume 2
- Proposed Draft Summary – Español [Mejor vivienda por diseño - Resumen preliminar propuesto]
Helpline: Call 503-823-0195; interpretation services available
Email: betterhousing@portlandoregon.gov
Monday, June 11, 2018
Multifamily Marketwatch Podcast - June 11, 2018
This week: After holding off for several months, the City of Portland begins spending money from the affordable housing bond; Metro receives requests from four cities in Oregon to expand the urban growth boundary, and cities across the country begin to see the impacts of the national housing shortage.
Metro Council Sends $650 Million+ Affordable Housing Levy to Voters
City of Portland 2035 Central City & Comprehensive Plans Final, Fully Enacted
The City of Portland has finalized and approved the official version of the 2035 Central City Plan. The 2035 Comprehensive Plan, adopted in 2016, became effective on May 24, 2018.
Thursday, June 7, 2018
Decoding Portland's Renter Relocation Requirements
Wednesday, June 6, 2018
Portland City Council to Vote Today on Central City 2035 Plan
Tenants Facing Rent Hike Ask City of Spokane for Help
Tuesday, June 5, 2018
City of Portland Using Bond Money on First Turnkey Project
PSU: Hundreds of New Studio Rentals Planned Near Campus
Monday, June 4, 2018
Oregon State Government Announces $54 Million For 837 Affordable Housing Units
The current round of funding is for nine affordable housing communities in Lincoln, Umatilla, Multnomah, Marion, Polk and Washington counties.
Another round of funding is expected in the fall.
Multifamily Marketwatch Podcast - June 4, 2018
This week: The Portland City Council took an initial vote to allow taller buildings in Portland's Chinatown; Tacoma appears on track to overtake Spokane as the Washington state's second largest city, and the CEO of Seattle-based real estate website Redfin blames restrictive zoning laws for the country's housing affordability crisis.