We are excited to share a link to download our latest issue of the annual HFO newsletter, The Northwest Apartment Investor. This year, in addition to our usual updates on PNW markets and outlook on the year ahead, we include an interview with Washington Lt. Gov. Denny Heck, an article about parking reform by Catie Gould of the Sightline Institute, and more.
Click here or below to download your copy now!
This month on HFO-TV, broker Aaron Kirk Douglas speaks with leaders of two Oregon modular construction companies to learn more about the growing industry.
Kendra Cox of Aumsville-based Blazer Industries tells us about the basics of modular construction and how they work with their clients, including the benefit of working with a modular construction company during the current shortage of construction laborers.
"It's hard to find contractors and people to put the building together generally in certain locations. On the one hand, contractors are very busy right now, and so when a group can't find a local contractor, they may come to a modular builder."
Nathan Young, CEO and principal builder of MODS PDX, discusses how he came to work in modular construction and its benefits to developers and the planet.
"When you think about the fact that we're building four, five, six projects all at one location, it means we're not driving all over town," Nathan tells us. "There's obviously a fuel impact there, but it's also we're able to recycle a lot more materials because things that would otherwise fall under the off the into the mud and not be utilized, fall onto the ground, onto the, onto the cement. They're dry, they're still clean, we can take them over to a table saw, turn them into something else. So, we have a lot less waste just because we're able to reuse products in different formats."
When asked about the reason behind the reported surge in modular construction's popularity, Kendra pointed out the urgent need for affordable housing of all kinds, and Nathan shared that he sees this as the natural development of the industry.
"Essentially, as we're able to move towards more technologically advanced systems and approaches, we can move the construction into an offsite world where we can now know that we're going to build it the same way," Nathan says. "The analogy that I use a lot for people is the same way that your custom cabinets are built inside your kitchen. The cabinet maker comes to your house, measures the cabinets, leaves, he doesn't go into your garage and set up a table saw and a chop saw and start cutting the cabinets ... we have the same capacity now to go and measure a site or look at a site, draw it up, and then go build it off-site and bring it to the site and know it's going fit just the same way that we do other forms of carpentry."
The percentage of residents who can afford the monthly payment on the median home sold has declined throughout the metro area, as "rising interest rates have pushed ownership affordability to its worst point in recent decades," writes Oregon state economist Josh Lehner in an update on homeownership affordability using recently released November home sales data. But there is good news on the horizon, Lehner advises.
"The combination of lower interest rates, rising incomes, and falling prices this year and next will bring overall affordability back to the historical range," he writes. "Sales volumes and housing starts will revive along the way."
In the Portland Metro:
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| Oregon Office of Economic Analysis (oregoneconomicanalysis.com) |
In Bend:
The Multnomah County government will decrease the number of tarps, tents, and other supplies given to local nonprofits to distribute among Portland's houseless community, according to the Joint Office of Homeless Services (JOHS).
The news accompanied headlines citing the more than 22,000 tents and 69,000 tarps purchased at a cost of more than $2 million for the homeless over the past two years.
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The Daily Journal of Commerce (DJOC) quotes a county spokesperson as explaining, "With public buildings, day centers, libraries, even coffee shops closed, and shelters operating at reduced capacity to reduce the spread of the COVID-19 virus, the JOHS used relief funds to provide emergency supplies to people to be able to survive outside until vaccines and reopening."
Local attorney John DiLorenzo has filed a federal lawsuit to compel the city to remove tents on sidewalks, arguing this practice violates the Americans with Disabilities Act.
Funding for the purchases was reduced from $3.1 million to $1.2 million in the budget that took effect on July 1st, and in August, organizations distributing the supplies were notified by email that they could not visit the warehouse as often and that limits would be placed on the number of items that could be picked up each visit.
"We continue to offer life-saving supplies during weather events, as well as work with groups all year to assist those still facing exposure daily as staff and budget allows," the county spokesperson told the DJOC.
However, DiLorenzo points out, these efforts have a significant impact on another segment of the population.
"The city should terminate its relationship with the JOHS and, instead, use its dues to finance its shelter first policy and keep the sidewalks clear of obstructions so those with disabilities can have their lives back," DiLorenzo told the DJOC.
Read more at PamplinMedia.com
With energy rates on the rise, here's the latest from Tacoma Public Utilities on their available water and electric incentives. Many utilities in the Pacific Northwest offer similar incentives. Be sure to check with your provider if you think one of these programs can save you or your tenants some money on utility bills. Thanks to Rochelle Gandour-Rood, water program specialist for Tacoma Water, and to Sarah Bowles, conservation program manager for Tacoma Power for the information!
