Cascade Policy Institute: "Who Will Pay the Bills When the Pandemic Ends?"

"Who Will pay the Bills When the Pandemic Ends" is the topic of an article written earlier this month and published today by the Central Oregonian. The article was published initially by the think tank Cascade Policy Institute's VP of Research questions, Eric Fruits, Ph.D.  

Elected officials throughout the state and country have put themselves in an impossible position 

Recently, the U.K. became the first western nation to vaccinate its residents against COVID-19. The recipient, a 91-year-old retired shop clerk, voiced relief, "I can finally look forward to spending time with my family and friends in the New Year."

Despite the fanfare greeting the vaccine rollout, authorities warned that the vaccination campaign would take many months. They warned the tough restrictions that have rattled daily life and cratered the economy are likely to go on into spring.

While many of us dream the vaccine will bring a return to normal life, for many people post-pandemic life will be a nightmare. The end of pauses, freezes, shutdowns and lockdowns will mean the end of moratoriums on housing evictions, utility shutoffs and student loan payments.

During COVID-19, millions of Americans have racked up thousands — maybe tens of thousands — of dollars in unpaid rent, utilities and student loans. For example, information presented to the Oregon Governor's Council of Economic Advisors estimates unpaid rent in the state is between $250 million and $300 million. When the emergency ends, those bills will come due.

Elected officials have put themselves in an impossible position. If they allow masses of evictions and utility shutoffs, they will face torches and pitchforks from their constituents. If they try to pass laws wiping out the debt, they will face a revolt from some of their biggest donors. And, even worse, they will face years of constitutional challenges.

In Washington State, Only 85% of Renters Paid Full or Partial Rent in December

(Renton, Washington) – The Washington Multi-Family Housing Association’s (WMFHA) found 85% of statewide apartment homes made a full or partial rent payment by December 13, 2020. The data was collected from the association’s 267,000 professionally managed homes in the state.

This represents more than $212 million in unpaid rent across Washington state, is a 3.37 percentage point decrease in rent collections from the previous month of data collected, and a 4.21 percentage point decrease in collected rent from April 13, 2020. The data encompass a wide variety of market-rate rental properties across Washington state, which can vary by size, type, and average rental price.

 91% of the rent a tenant pays goes to mortgage holders, financial institutions, taxes, maintenance costs, payroll for staff, and utilities. Less than 10 percent goes back to the property owner. We urgently need a massive influx of rental assistance to help residents keep up with housing payments, avoid massive debt, and protect Washington’s fragile housing system.

WMFHA has been collecting local rent payment information from its members since the COVID-19 pandemic proliferated in March 2020. The numbers serve as an indicator of resident financial challenges and will track the recovery as well.

The survey has become crucial to local policymakers to understand the state of the rental housing industry. It helps to inform any legislation that is produced in city, county, and statewide jurisdictions.

Washington State Expected to Receive $507 Million of Rental Assistance Funds

The Washington Multifamily Housing Association (WMFHA) reports that funds to be managed by the state and counties are expected to approximate $507 million for the state. 

The United States Congress passed the Consolidated Appropriations Act of 2021 last week, which was signed by the President on Sunday. The Act provides for $25 billion in rental assistance to be distributed by the Department of the Treasury.

• Rental assistance eligibility includes current or unpaid rent and utility payments (up to 9 months of rent arrears, and/or 3 months going forward) and other directly or indirectly incurred housing expenses because of the pandemic. 
  
  
• Eligible households are those: 
• With a household income below 80 percent of area median income (AMI); 
• States should prioritize families with incomes below 50% of area median income (but no set percentage of funds distributed is required), as well as renter households who are currently unemployed and have been unemployed for 90 days.
• With a demonstrable risk of experiencing homelessness or housing instability; and
• Have one or more household members who qualify for unemployment benefits or experienced financial hardship due, directly or indirectly, to the pandemic.
• Income eligibility is based on time of application and must be recertified every three months.
  
  
• Administrative programs distributing rental assistance may use up to 10 percent of allocated funding for housing stability services, including case management and other services intended to keep households stably housed.
  
  
• In Washington, the rental assistance is likely to be distributed in a similar manner to the $100 million in state rental assistance distributed earlier in 2020. 
  
  
• The application process requires renters to apply for assistance from their administrative agency managing the program. Housing providers can also apply for rental assistance on behalf of the resident but must inform them and secure their consent.
  
  
• Payments are sent directly to the housing provider.

The WMFHA provides links to local rental assistance programs on its website at:

https://www.wmfha.org/rental-assistance

Washington Governor Plans to Extend State's Eviction Moratorium to March 31

Governor Jay Inslee has announced that he will once again extend a ban on evictions in that state to March 31st. Read more.

Read the Full Text of Rental Owners vs. Governor Brown, State of Oregon, City of Portland and Multnomah County

HFO has obtained a copy of the full complaint filed in U.S. District Court by rental owners with all exhibits. Read or download your copy here.

Landlords File Suit Against State in Federal Court, Seeking to Invalidate Eviction Ban

On Monday, the Oregon State Legislature extended a statewide eviction moratorium through June 30th.

Hours later, a handful of rental owners filed suit in U.S. District Court, calling the State of Oregon's extension of an eviction moratorium an unlawful state taking of private property without due compensation. They seek a federal injunction against the extension. Read more.  

The plaintiffs issued the following statement through their attorney, John DiLorenzo of Davis Wright Tremaine LLP:

Statement of John DiLorenzo on behalf of the plaintiffs in Farhoud, et al v. Brown, et al.

Late last evening, a lawsuit was filed in the Federal District Court naming Governor Kate Brown, the State of Oregon, Multnomah County and the City of Portland as defendants after the legislature failed to responsibly address the housing crisis which our state and local leadership created.   

According to Multifamily NW, Oregon renters are currently in arrears between $800 to 900 million in unpaid rent.  Yet, the state has opted to make available only a fraction of the overall need ($200 million) to benefit renters who reside in only certain types of housing owned by certain types of providers.  Sadly, the State had a chance to address this issue during the third special legislative session by taking up LC 881, a proposal designed to make it easier for all housing providers to provide rent forgiveness for existing tenants in exchange for credits against future Oregon income tax.  Instead, it adopted a new law (HB 4101) that fails to equitably address the growing crisis and simply kicks the can down the road, increasing the crushing debt that tenants who cannot pay rent will ultimately have to deal with in bankruptcy courts.  The state's latest response will require both renters and housing providers to wait in a very long line only to discover when they get to the window that the promised support is all sold out. 

Renters are in need of immediate support, unrestricted by artificial “tests” and unreasonable bureaucratic impediments.  The lion's share of renters want to pay rent and cannot because they have lost their livelihoods (either due to the Governor’s choice to close the businesses which used to employ them or because the Governor has closed the schools their children attend requiring them to provide all daycare for their children).  Governor Brown, the state, the county and the city determined that the COVID-19 crisis required those actions.  We are sympathetic to all who have been impacted by this horrible disease and are not going to second guess whether the government’s responses were necessary or appropriate.  But there is no doubt that the state’s choices and the choices of the city and county were the direct causes of the grave financial circumstances which renters and their housing providers are now experiencing.

The plaintiffs are private sector housing providers who the defendants have required to provide services without compensation.  Moe Farhoud is a respected housing provider in the Portland Area.  Mr. Farhoud immigrated to Oregon from Lebanon in 1985, fleeing a war that claimed members of his family.  He has dedicated much of his life and his business to creating safe, good quality rental housing.  Mr. Farhoud helps individuals get a second chance at finding stable housing, working with clients who have past infractions.  A brief video about Mr. Farhoud and the business he has built is linked here:  http://moefarhoud.com/

The Sherman family are local housing providers in the mid-Willamette Valley who have invested 18 years of their lives to build their business. Crystal and Tyler have renovated dozens of distressed properties into rental homes that have provided a safe space for hundreds of families. They are proud of the business they have built together and the opportunity it has provided them to give back to their community.

The plaintiffs allege that the actions of the defendants violate the Contracts Clause of the United States Constitution, the prohibition on takings without just compensation in the Fifth and Fourteenth Amendment to the United States Constitution and the prohibition against seizures of property in the Fourth and Fourteenth Amendments to the United States Constitution.  The plaintiffs request that the Federal District Court either declare the Moratorium declarations, executive orders and laws invalid and void or, in the alternative, require the state, City and County to design and implement a plan to adequately compensate all private housing providers for their losses incurred in addressing the consequences of the governments’ response to COVID-19.

Congressional COVID Relief Bill Includes Rental Assistance and Extension of Federal Eviction Moratorium

The CRE Finance Council Reports:
Relief from Troubled Debt Restructuring until January 1, 2022, rental assistance, and a one-month extension of the CDC’s eviction moratorium are included according to summaries of the agreement. The bill also includes an additional $300 per week in unemployment insurance through March 14, and direct payments of $600 for individuals making up to $75,000 per year and $1,200 for couples making up to $150,000 per year, as well as a $600 payment for each child dependent. 

Small businesses receive $325 billion, including $284 billion for first and second forgivable PPP loans, dedicated set-asides for very small businesses, and expanded eligibility to 501(c)(6) nonprofits. Low-income communities also receive $20 billion for new SBA grants. It also provides funding for vaccine distribution, food assistance, tax breaks, and money for education and child care. This agreement also includes $15 billion in dedicated funding for live venues, independent movie theaters, and cultural institutions.

What’s Out
The agreement does not include a liability shield for businesses and direct financial aid for states and cities that are facing pandemic-related budget shortfalls.

What Matters Most to Commercial Real Estate
TDR Relief Extended – CREFC has been advocating for months to extend the CARES Act’s temporary suspension of generally accepted accounting principles (GAAP) requirements for the Troubled Debt Restructuring (TDR) classifications on loans so that banks and life insurance companies can continue to work with their CRE borrowers. 

Sec. 541 extends temporary relief from TDRs under the CARES Act for an additional year, to January 1, 2022. The legislation also clarifies that insurance companies are included in this relief. This is a major win for CREFC members. Read a summary of the financial services provisions. 

Rental Assistance – Sec. 501(b) sets up a $25 billion rental assistance program to be distributed by state and local governments with populations of 200,000 or more. Each state shall receive no less than $200 million. Funds may be used for direct financial assistance, including current and past-due rent, utilities and home energy costs, utilities, and home energy costs. Eligible households may receive up to 12 months of assistance, plus an additional three months if necessary. The relief is targeted to households that are at or below 50% of the area median income, or where one or more members of the household has been unemployed for 90 days or longer. Landlords may apply on behalf of tenants or tenants may apply directly for this assistance. Read more about rental assistance. 

Eviction Moratorium – Sec. 502 extends the rental eviction moratorium issued by the Centers for Disease Control and Prevention (CDC) through January 31, 2021.

CECL Relief – Sec. 540 extends temporary relief to financial institutions from complying with Current Expedited Credit Loss (CECL) accounting standard through January 1, 2022. 

Landlords Should Support LC-881 - The Emergency Bill Offering Tax Credits for Unpaid Rent

A bill being introduced by Oregon Senator Betsy Johnson (D-Scappoose) in the 2021 regular session needs the advance support of landlords. Here's why:

Highlights of LC881

• Rescues tenants because all rents in arrearage are forgiven
• It adequately compensates landlords by converting the arrearages to tax credits, which can be taken over three years.
• It does not require a current funding source because future revenues fund it
• It minimizes or eliminates the State’s exposure to lawsuits.

Additional notes regarding Oregon Sen. Betsy Johnson’s proposal: LC881

• It provides tax credits to the landlord, which can be taken against future Oregon income tax over three years if the landlord forgives the tenant’s past due rental obligations.  The credits will be in the amount of rent forgiveness. 
• The tenant must be a current occupant paying current rent for the landlord to avail itself of this option.
• A landlord may sell and assign credits to other Oregon taxpayers if the landlord is not in a position to make beneficial use of the credits.

Advantages for all parties:  

• The State avoids takings claims as the rent the State has prevented the landlord from collecting becomes so old as to be worthless. 
• The landlord recovers something in exchange for having provided services to tenants without cost during the duration of the emergency. 
• The tenant receives debt relief and peace of mind knowing there will be no obligation to pay thousands in back-due rent or suffer bankruptcy. 
• The State will be able to accomplish the preceding by use of future rather than current revenues.

Read the complete draft of this 10-page bill here.

Write to your Oregon representatives in support of this legislation. Find out who your legislators are by clicking here.

HFO Multifamily Marketwatch Podcast - December 21, 2020

This week: Oregon’s special legislative session will consider $200 million in relief funds for landlords and tenants; Moody’s Analytics estimates that renters nationwide could owe billions in back rent by next month.

Listen to our latest podcast.

December in Washington State: Hundreds of Millions in Unpaid Rent

In a survey of 267,000 professionally managed homes in Washington State, the Washington Multi-Family Housing Association found that $212 million in rents went unpaid. Read more. 

Senate President Peter Courtney Plans to Introduce By-Right Development Bill in 2021

The Portland Business Journal reports that Oregon Senate President Peter Courtney plans to introduce a bill in the 2021 legislative session that would make affordable housing development a "by-right use" on all residential land within urban growth boundaries. Affordable housing developers would be required to meet some safety, health, and infrastructure provisions but local officials would not be allowed to impose additional standards. Read more.

Multnomah County Eviction Moratorium Will Now Expire July 2021

Multnomah County commissioners voted unanimously to extend the county's eviction moratorium through July 2, 2021. Tenants will still have a 6 month grace period to pay back any rent owed. This is the fourth extension of the county eviction moratorium since March. County Commissioner Sharon Meieran is urging state legislators to find a way to compensate landlords for missed rent payments. Read more.

Bipartisan COVID-19 Relief Bill Provides $25 Billion in Rental Assistance for States and Localities

The coronavirus relief bill introduced Monday provides financial assistance for tens of millions of Americans potentially facing eviction in the new year. It offers $25 billion through the Coronavirus Relief Fund to states and localities and extends the national eviction moratorium through January 31, 2021. Read more. 

Thurston County's Eviction Resolution Program Offers Resources to Tenants and Landlords

 Thurston County's Dispute Resolution is part of a new pilot program providing resources and support to renters at risk for eviction, and to landlords experiencing financial hardship as a result of COVID-19. Read more. 

Oregon Interim Committees Holding Public Hearing Thursday on Item of Serious Concern to Rental Owners - Get Involved

The Oregon Interim Committee on the Third Special Session of 2020 will hold remote meetings on Thursday, December 17 at 6 pm and Saturday, December 19 at 10 am. Among other things will be accepting public testimony of LC-18 relating to residential tenancies. 

There will be the opportunity to provide written or oral testimony to the following two remote hearings in Salem tomorrow,  Thursday, December 17th, 2020, at 6 pm and Saturday, December 19th at 10 am. 

LC-18 is of serious concern to rental owners for the following reasons: 

Rental Owner Objections to LC-18

The concept under discussion is flawed because:

1. It does not rescue tenants from ultimately having to file bankruptcy or eviction.
2. It does not come near to compensate landlords for orders which required them to provide services for free.
3. It requires a current funding source that does not exist.
4. It exposes the State to significant takings claims in court.

View the Agendas and the full 40 pages of the draft of LC-18 here

How to register to testify by video, by phone, or send testimony by email:

• Register to testify by 1 pm tomorrow, Thursday, December 17th, for the 6 pm hearing
• To testify by phone or video link, sign up online or call 833-588-4500 
• Submit email testimony to J3SS.exhibits@oregonlegislature.gov

Watch the Livestream events. 

• Click here at 6 pm Thursday, or 10 am Saturday. 
• Locate the meeting date and click on the camera icon at the designated time.

KUOW: As Governor Inslee Considers Extending Washington Eviction Ban, Some Tenants and Landlords Slip Through the Cracks

Both Landlords and tenants alike are struggling in Washington State, as KUOW radio in Seattle reports. 

Gov Brown to Call Special Session for COVID and Wildfire Relief

Governor Kate Brown is convening a one-day special legislative session on Monday, December 21st in order to address the needs of Oregonians who have been impacted by wildfires and COVID-19. Legislators expect to discuss a package of four bills during the session. These bills include $200 million in relief for landlords and tenants, aid for bars and restaurants including legalization of to-go cocktails, COVID-19 liability protection for schools, and a $600 million transfer to the state's emergency fund. Read more.

Washington County Announces $2 million for Cash-Strapped Low-Income Landlords

The Washington County Community Development Department announces its Landlord Economic Relief Program for Multifamily Affordable Rental Housing.

Washington County is offering an expedited application process to assist owners of multifamily affordable rental housing projects located in the County that have been impacted by the loss of rental revenue associated with the Covid-19 pandemic. The purpose of this funding is to provide relief to landlords, provide relief to tenants who have not been able to fulfill their rental obligations due to the pandemic, and to stabilize subsidized housing projects so that they can continue fulfilling the mission of providing quality housing to Washington County households with modest incomes.

For a property to be eligible, it must be located in Washington County, consist of five to 300 units, have deed restrictions enforcing an affordability period of fifteen years or more, and there is a demonstrated net loss in rental income due to the Covid-19 pandemic from March 1, 2020, through December 30, 2020, once other assistance has been applied to offset the loss.

Eligible applicants include nonprofit and for-profit entities and the Housing Authority of Washington County. Applicants may submit applications for multiple properties. If the property owner is a Limited Partnership, the applicant must be the Managing General Partner or an equivalent.  In the case that the Housing Authority may be a Special Limited Partner for the purpose of tax exemption only, the Housing Authority may not be the applicant. 

Properties serving the following populations disproportionately impacted by inequities exacerbated by COVID-19 will be prioritized:

• Black, Indigenous, Latinx, and people of color
• Families with children

Funds received through this program must be applied toward back-due rent, and the payments must be credited to the accounts of tenants who are behind in their rent. Properly documented modifications related to Covid-19 and occurring March 1, 2020, through December 30, 2020, may receive secondary consideration if sufficient funds are available. Decisions regarding awards for modifications and delayed maintenance and repair costs will be made at the sole discretion of the County and are dependent upon eligibility and funding availability.

The maximum award for rental economic relief per project is $300,000. If an applicant submits multiple projects, the maximum award per applicant for all projects submitted by that applicant is $500,000. Awards may be reduced prior to making the final payment should rental payments by an outside entity (such as Community Action) be conveyed to the owner between December 1, 2020-January 15, 2021. Washington County will verify prior to making payment. This is to ensure that any payments in transit are validated as non-duplicating.

[Note that these funds are restricted to low-income housing or properties with existing deed restrictions.] 

If you have a question about the program, you can contact: cdbg@co.washington.or.us

UPDATE:  

Click here to apply for this program

Learn more about Washington County's CARES Act Fund allocations

HFO Multifamily Marketwatch - December 14, 2020

This week: Oregon’s legislature undecided on a pandemic special session; Washington’s Governor announces COVID-19 restrictions to January 4, and The Atlantic publishes a piece predicting the future for cities in 2021 and beyond.

Listen to our latest podcast.

Economist Takes Heat for Implying that Banks & Landlords Sort Out Rent Defaults in Bankruptcy

University of Oregon economist Tim Duy is an expert on macroeconomics and the Federal Reserve and writes for Bloomberg News. Duy was on a recent phone call with Governor Kate Brown as part of her Council of Economic Advisors. A recent federal study showed Oregon faces $250-$350 million in rental arrears, which Brown asked would make sense as an investment for the state in the short term. Duy indicated that he would probably let the bankruptcy courts and banks deal with it. 

Multifamily NW followed up with a letter to the governor. 

Duy stated later that he meant to imply that federal officials should pay for a solution, but they have not, leaving the banks and courts to deal with the results. The Portland Business Journal recounted the events in this article. 

 

City of Portland to Distribute 4,000 More Debit Cards for Pandemic Assistance on Thurs. Dec. 10

The City of Portland Housing Bureau has announced it will allow Portlanders struggling from health or financial impacts of COVID-19 the opportunity to apply for $500 in cash assistance. The funds can be used for food, dependent care, medicine, rent and utilities, and transportation. 

Applications will be accepted online at www.pdxassist.com on Thursday, December 10, from 3pm to 6pm. The application window will remain open for three hours and all applications submitted during that time will be accepted. Once the application window has closed, applicants will then be selected from the applicant pool at random using a lottery system.

The total value of the 4,000 cards being made available at this time is $2 million. The money is part of the $38 million in housing relief measures by the City of Portland and Portland Housing Bureau in response to COVID-19, including $19.5 million for rent assistance and $1.6 million in housing stabilization support. 

According to a release from the City of Portland, most of the funding is being distributed in collaboration with more than 30 culturally specific community organizations. 

Washington Post: Millions Heading Into Holidays Unemployed and with $5k in Back Rent

Nearly 12 million renters will owe an average of $5,850 in back rent and utilities by January, and families with children are especially at risk. More federal aid will be needed.

HFO Multifamily Marketwatch - December 7, 2020

An Oregon support fund for landlords could begin accepting applications in January; counties in Washington State are distributing $120 million in federal rent assistance despite fears it will not be enough.

Listen to our latest podcast.

"Let Landlords File Bankruptcy"? Multifamily NW Sends Urgent Letter to Oregon Governor Kate Brown Regarding Pandemic Rent Crisis

 

Dear Governor Brown,

On behalf of Multifamily NW, which represents more than 2,500 members who provide over 270,000 rental units in Oregon, I am reaching out to share our concerns related to statements made during the last meeting of your council of economic advisors. In this letter, we also provide a series of policy proposals that can alleviate the state’s potential inability to allocate the necessary amount of emergency rental assistance.

In reviewing a recent session of the Governor’s Council of Economic Advisors, you correctly underscored that by intervening in the private market for housing the State has created an enormous unfunded liability. You quoted that one estimate of rental arrearages in Oregon at $250-$300 million, and you asked the group “does that make sense in terms of an investment in the short term for the state to step up and pay that?”

Oregonian renters and housing providers would be angered and disheartened by the response you received from economist Tim Duy, and your apparent agreement with his statement: “I don’t know that it’s possible for the state to make that investment, it’s probably too big, and I would probably let the bankruptcy courts deal with it and let the banks deal with it....you are going to have to accept that there are going to be costs to this pandemic that cannot be dealt with effectively by the state.”

We find it extremely concerning that a member of your economic advisory council could make this statement without acknowledging the state’s role in generating the hundreds of millions of dollars in back due rent.

Throughout the pandemic, you have mandated that housing be provided free of charge, regardless if the renter has faced a financial hardship related to the COVID-19 virus. Due to your mandate many property owners, market and affordable, have gone without rent since April 2020.

Put another way, the question posed to your council of advisors could also have been “does that make sense in terms of an investment in the short term for the state to step up and preserve Oregon’s rental housing supply?”

In response to the council’s assertion that all financially imperiled housing providers should seek relief in bankruptcy, we are happy to offer alternative solutions that don’t result in a tenant losing housing or families losing their life savings.

Here are four concepts, in order of efficacy, that could be implemented as an alternative to letting Oregon housing inventory and small business community fall into bankruptcy:

• Design systems to distribute Rental Assistance efficiently and impartially across the state. If necessary, borrow to ensure that the rental assistance adequately covers the need. Note that the potential losses to housing providers is far more than the $250 – 300 million cited above.
• Design a short-term loan program for households that cannot afford rent, with flexible repayment terms. (Note: Landlords are effectively being forced to act as an interest free lender to tenants.)
• Pass LC 881
• Design a State Income Tax Credit to substantially defray pandemic legislation-related losses using future, rather than present revenue.
• Consider Property Tax Relief for Property owners who have been subject to state takings.

Proposed legislative concept 18 does not address the root issues presented by HB 4213 and the eviction moratorium. It will further deepen the eviction and bankruptcy crisis for both housing providers and their residents.

Multifamily NW remains committed to finding a workable resolution that addresses the vulnerabilities of both renters and housing providers. We hope that you and legislative leadership will reinstate a tenant and landlord workgroup to address the housing issues presented by COVID-19.

Sincerely,

Deborah Imse Executive Director

Multifamily NW

Washington State Senate Committee Hears Presentation on Potential Impact of Rent Control

The Washington Multifamily Housing Association reports that yesterday, December 1st, the Washington Senate Committee on Financial Institutions, Economic Development & Trade received a presentation on the impacts of rent control on private investment in residential housing. The presentation focused on housing industry effects if the legislature implements rent control.

Those effects include:

• A loss of 11% of new homes over the next 10 years
• A decrease in state revenue, including $200 million in property taxes and $301 million in sales tax
• A reduction in available housing options for those that choose to call Washington home

Review the report Rent Control in Washington State - The Impact on Housing Affordability here. You can also view the video of yesterday's presentation here. The presentation ends after roughly 36 minutes. 

For more information about the impact of rent control on Washington state, visit the Partnership for Affordable Housing's website. The Washington Multifamily Housing Association is a founding member of Partnership for Affordable Housing, a nonprofit formed out of a shared interest to create fresh ideas and solutions to providing a wide range of housing options for all Washingtonians. 

Apartment List Report on Seattle Metro: Rents Decline in Seattle, Rise in the Suburbs

Apartment List reports the following year-over-year declines in rent as of November:

• Seattle - 12.2 percent
• Bellevue - 7.8 percent
• Redmond -6.9 percent
• Kirkland -3.6 percent

Year-over-year effective rent increases

• Auburn + 3.6 percent
• Lakewood +2.7 percent
• Tacoma +2 percent
• Kent +1.6 percent
• Lynnwood +0.7 percent

Areas where rents remain flat year-over-year

Bothell

Renton

Everett

Federal Way

Apartment List Report: Rents in Flux in Portland Metro, Increase in Eugene and Salem

Apartment List has released a report indicating that Portland rents declined by 1.6 percent over the past month, and 6.5 percent year-over-year, the eighth straight month of rent decreases. Portland's rent drop has not been nearly as severe as in San Francisco, Boston, and Los Angeles. 

Despite these metro-wide decreases, many outlying suburban areas have had rents rebound to pre-pandemic levels. For example, the report indicates that rents in Beaverton, Hillsboro have remained relatively flat year-over-year while rents in Gresham have increased by 2.4 percent.  

The report indicates that rents in Eugene are up 3.4 percent year over year while Salem rents have increased by 3.8 percent.