Residential Housing Newsletter #42

by LandlordSolutions July 19, 2024

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Welcome to the 42nd issue of our WA State residential housing newsletter! Here's what happened last week: ?

Local

Pierce County Republicans Attack Jim Henderson and Michelle Caldier

Pierce County GOP created a website about two months ago to criticize Jim Henderson and Michelle Caldier. “They don’t believe that I’m a Republican,” Henderson said?to the Tacoma News Tribune. “Part of it is because I’m gay.”

Nearly $6M in Eviction Prevention Requested in Pierce County in 2024

$5.8 million in eviction prevention funding has?been requested in Pierce County since January?1st, 2024. $2.8 million has been paid out in 2024, with?rent and utilities assistance making up $2.1 million of the funding provided.

Robots are Helping Build New Apartments in Seattle

Driven by a lack of new workers, multinational construction company Skanska has turned to?robots to take photos and measure construction progress on 31-story development in Belltown. Some local unions are buying robots, too.

WA Drug Addicts May Soon Be Able to Use?'Safe Supply'

'Safe supply' allows drug addicts to use prescription fentanyl and heroin equivalents?while supervised by a physician. Safe supply?may?reduce?the risk of overdose and the practice may soon be coming to Washington State.

WA Mobile Home Complaints Over Rent Hikes, Policies Surged in 2023

WA State's?Manufactured Housing Dispute Resolution Program?listed a record?731 complaints from tenants – up 28% from the previous year’s 572 and double the approximately 360 complaints filed in 2019-2021.

Pierce County Apartment Complex Sells to Washington Investor

Fourth Avenue Capital acquired 78-unit Alder Walk apartments in Frederickson on July 11th for?$21.3 million, or about $273,077 per unit from Bellevue-based Terrene Homes, which developed and built the complex in 2022.?

238-Unit?Project in Vancouver, Washington Breaks Ground

Vista Residential Partners, along with PCCP and Principal Asset Management, has broken ground on One26 Vista, a 238-unit?apartment community in Vancouver, just across the Columbia River from Portland, Oregon.

National

Biden Admin Wants to Cap National Rent Increases at 5%

President Biden?called on Congress to pass legislation forcing landlords with over 50 units in their portfolio to cap rent increases on existing units at 5% or risk losing?federal tax breaks. This would affect over 20 million units in the U.S.

Tenant Protections for Federally-Backed Mortgages Coming Feb. 2025

Millions of U.S.?landlords with federally backed mortgages from Fannie Mae or Freddie Mac must now provide 30 days’ notice to tenants before raising?rent?or ending?a lease. The new rules will take effect in February 2025.

Evictions Surge in the Sun Belt

Eviction filings over the past year in a half-dozen cities and surrounding metropolitan areas are up 35% or more compared with pre-2020 norms. Notices in Houston, Las Vegas and Phoenix remain at elevated levels.

Foreign Investment in U.S. Homes Decreased 21.2%

International buyers purchased $42 billion worth of U.S. residential properties from April 2023 to March 2024, down 21.2% from the prior year. The 54,300 existing homes sold slid 36% from the previous year to the lowest on record.

Multifamily Properties Under Pressure From Ballooning Expenses

Multifamily properties experienced "drastic" growth in operating expenses like insurance, utilities, repairs & maintenance, and especially payroll & benefits from 2022 to 2023. NOI has risen with costs, remaining stable at 45%.

Net Move-Ins For the First Half of 2024 Nearly Match All of 2023

138,000 net move-ins were posted in Q2 2024, the best quarter for absorption since Q3?2021 and the fourth strongest quarter on record since 2000. About 230,000 units were absorbed year-to-date, nearly matching the total for 2023.

The Real-Estate Fund Industry Is Bleeding Billions

Fundraising has dried up for real estate investment trusts and similar real estate funds while redemption requests (withdrawals) have gone up drastically, as investors grow nervous about?high?interest rates and lower property values.