Residential Housing Newsletter #15

Welcome to the 15th issue of our Puget Sound residential housing newsletter! Here's what happened this week:

Local

Washington State Lawmakers?Convene?for 2024 Legislative Session

2024 is set to be the?most significant election year in history. Washington State's?2024 Legislative Session?started on Monday, January 8th. Housing and rent control are high on Washington State's political agenda this year.

Housing Equity Accelerator Matches Developers of Color with Capital

A Puget Sound?housing accelerator is offering housing developers of color access to capital for business expenses?and direct real estate development project costs. Applications are due by January 19th.

WA Democrats Propose New Tax on Real Estate Sales Over $3 Million

WA State Democrats proposed a new tax that supporters say could raise nearly $300 million every two years. Republicans argue it could drive up costs for renters by adding costs on sales of large multifamily properties.

30-Day CARES Act Notice Broadly Applies In Evictions, WA Panel Rules

The WA State Court of Appeals ruled that a?tenant was wrongfully evicted from public housing because the landlord did not comply with the CARES Act's notice requirement, ruling the 30-day notice applies beyond late rent cases.

98-Unit Tacoma Apartment Development Listed for $3.2 Million

Avenir Apartments, located at 3718 Pacific Ave, is on the market with an asking price of $3.2 million. Building permit issuance is anticipated in Q1 2024, utilities are ready for connection, and the project qualifies for MFTE.

At Least?1,320?WA Rental Units Sold Off?Since 2020

Internal data from members of the WA State Chapter of the National Association of Residential Property Managers shows that at least 1,320?rental units were taken off the market since harmful rental policies passed in 2020.

New WA House Bill?Requires Cities to Allow?Splitting of Residential Lots

The WA State House of Representatives passed a bill on Monday?with a vote of 94-4 requiring?cities to allow residential property owners to split their lots into smaller parcels.?The measure will go next to the Senate.

National

Oversupply Leads to Drop in National Median Rent

565K new rental units were delivered in 2023, the highest number since the 1980s. This supply-demand imbalance led rents to?bottom?out around -1%, with?nationwide median rent falling by 0.8 percent to $1,379.

High Interest Rates Lead to Slowdown in Multifamily Construction

84% of multifamily developers reported construction delays in Q4 2023, citing ballooning costs. Senior housing occupancy climbed 2.3% in 2023, nearing pre-pandemic levels, amid a shortage in affordable senior housing.

1 Billion Square Feet of American Office Space Sits Vacant

About 370 Empire State Buildings worth of office space sits vacant in America. Although it may seem like a no-brainer to convert this space to residential housing, this may prove more challenging than at first glance.

Mortgage Rates Set to Drop in 2024, But Not By Much

After touching a multi-decade high in October 2023 of nearly 8%, most experts expect mortgage rates to drop to as low as 6.1% by the end of 2024. That's still a far cry from the rock-bottom rates during the pandemic era.

Fannie Mae and Freddie Mac Can Now Invest Up to $1B Each on LIHTC

Effective January 1, 2024, the?Federal Housing Finance Agency has increased the limit that?Fannie Mae and Freddie Mac can?invest in Low Income Housing Tax Credits to $1 billion,?up from $850 million.

AI-Powered Leasing Agents Are Improving the Renter Experience

Virtual leasing agents powered by AI are helping property managers respond immediately to prospective tenants, even after hours. One property manager scheduled over 70% of tours?after hours with the help of an AI leasing agent.

NAR President Tracy Kasper Resigns Due to Alleged Blackmail

Tracy Kasper, president of the scandal-ridden?National Association of Realtors,?resigned?on Monday due to blackmail. She was replaced by Kevin Sears, who became the 3rd NAR president in 4 months.