The latest numbers on multifamily real estate show a market that is getting hotter by the day. The experts at Pacwest Commercial Real Estate have put together five articles that will bring you up to date in no time.
If you own multifamily properties, you have to stay up to date on the laws covering your relationship with your tenants. Owning rental properties isn’t usually without its challenges, but a good knowledge of the law will help you navigate the situation if it does head south.
“The legalities of being a landlord take a considerable amount of research and understanding before you feel comfortable that you’re not breaking the law. Be sure to get a handle on the specifics of your market to stay legal and profitable!” – BiggerPockets Blog
Without a supply of discounted, distressed residential properties, investors are moving into multifamily properties in droves: fully 50% more of them include MF in their portfolio, compared to just two years ago. And the prices they’re paying are higher too.
“the median sales price of an investor-purchased unit rose from $320,000 last year to $375,000…the inventory of higher-priced properties is greater than that of more affordable dwellings.” – Construction Dive
Low vacancy rates have pushed the Portland multifamily market into the top 5 nationally. In addition to one of the lowest vacancy rates in the nation, a moderate year-over-year increase in property values and a low median age of housing inventory helped attract investors.
“The report gave Portland its ranking primarily for its low vacancy rate of 2.7 percent, the lowest out of the 75 markets evaluated in the report and around 160 percent lower than the national average.” – Portland Business Journal
The Portland multifamily market is so hot it has spawned its own set of “urban legends” to explain why apartments are so hard to find and so expensive when you do find them.
“Portland housing has been hot for a while. By 2011, this city’s rental market was the tightest in the nation. Last year, the number of apartments available for rent at any given time hit a record low of 2.8 percent, says real-estate brokerage Marcus & Millichap. With so few units available, tenants have no leverage—landlords can charge more.” – WWeek
The active Eugene multifamily market reflects a national trend that’s keeping lenders hopping as investors rush to take advantage of the best deals. Ned Huffman, president of Cleveland-based Bellwether Enterprise Real Estate Capital, puts it this way:
“We have seen a lot more financing requests in the multifamily sector. … The bulk of our business is in the financing of existing income-producing properties. Multifamily is by the far the biggest percentage of the volume we are doing.” – REJournals
The multifamily investment market is as hot as it has ever been. The professionals at Pacwest Commercial Real Estate look forward to putting their experience and market knowledge to work for you. And don’t forget, we’ll always treat you like the friend and neighbor that you are. Call 541-912-6583 today.