HFO Investment Real Estate · Member of GREA’s Post

Transcript

Looking for a place to rent in the metro area? Your search may become increasingly more difficult, according to the latest Multifamily Northwest report. Greg Frick, a board member with Multifamily Northwest, says a slew of new buildings came online over the past year. When the city put in inclusionary housing in 2017, we kind of almost created a bubble of development. Those inclusionary housing rules required new buildings with 20 or more units to offer a percentage of units. Simple rates. Frick says because of that, developers sought to get permits approved before those rules took effect. So we had a lot of permits in 17 and it takes a long time, especially in the city of Portland, to go from the time you submit to actually building and actually having something the least. He says many of those new buildings increase the rate of open units this past year, especially in the Metros core area. Now that reality is changing, what we're seeing now is there's no new permits being put in. Based on the financing cost, some of the political instability we have within, you know, have operations and things like that. So we're not what we're looking forward. What we see is we're not going to see a lot of new, new units coming online in 2526 and 27. The high rate of vacancies earlier this year helped stabilize rent, but the report shows that vacancy rates went down by 27% since spring. Now, Frick says that Portland has seen a number of people leaving the city, but if that trend changes, then any influx of people could put more pressure and increase rents, especially with these low vacancy rates in Northeast Portland. Casina, Jeff, Christina, thank you for that.