Lisa Zahner

Great webinar yesterday presented by Jeffrey W. Adler of Yardi Matrix. Some Portland specific notes- - YoY Rent Growth Year-End 2024 - 0.3% - YoY Rent Growth Year-End 2025 - 4.5% High level/national notes- - "Overall, the multifamily market is performing well, as demand continues to soak up supply" - "The supply shortage of U.S. housing is likely to last at least 5-10 years..." - "Rental growth in the next two years will be stronger than this year, as it will take some time for the Fed’s eventual rate cuts to meaningfully impact consumer demand" https://lnkd.in/gnpUW2VZ

1

Will the Ninth Circuit take this case on appeal? In my opinion, there is no nexus for making property owners bear the burden of supplying #affordablehousing in our communities. All members of society should bear the burden or put pressure on our elected officials to make policy changes that increase #housing supply and lower the cost to build new homes. “Despite its name, Seattle’s Mandatory Housing Affordability law does the opposite of what it intended — it makes it unaffordable for people like Anita to build housing on their own property,” Institute for Justice attorney Suranjan Sen said in a news release. The role of the Takings Clause is to ensure that particular individuals are not forced to “alone . . . bear public burdens which, in all fairness and justice, should be borne by the public as a whole.” In considering a challenge to a governmental action or regulation relating to private property, the Court must first evaluate whether a taking has occurred. https://lnkd.in/g28ap93N

4

2 Comments

SD Busisness Journal reports that the union and a local affordable housing developer are building 94 units for $77.1MM on land that was donated by the union. That's $820k per unit in costs, for a National City development. $820k/unit on free dirt, for renters who will pay 30% to 60% of AMI. Another client of ours is developing in the same area for $350k per unit, and leasing them at market rate rents. They paid $4.5MM for the land, or $30k/door, putting the cost for just the development at $320k per unit. They expect to sell that project for $500k/unit. So... they are building market rate units for $500k less cost than the "affordable housing developers," with a plan to sell them (profitably) for $320k per unit less than the affordable project paid to build them. I'm quite confident that the renters at 30% to 60% of AMI would be comfortable in this market rate development. In my "fit for public consumption" mind I ask: 1) Where is excess $500k per unit in cost going? 2) Is this the most cost effective way to solve the housing crisis? 3) How many other people are seeing this? https://lnkd.in/gv3Y3ERy

70

21 Comments

Many California voters are rightly confused about Prop 33, misleadingly claimed to be the "Justice for Renters" initiative. Who doesn't like Justice? Bottom line -- our housing affordability crisis is caused by simple supply and demand economics -- there is a shortage of housing in this state. Rent control constrains supply. Rent control may, in the short term, benefit a few (and in most instances without regard to income levels), but in the big picture, it results suppression of supply and deterioration of the housing stock. VOTE NO if you care about increasing the availability and affordability of housing in California. Please spread the word and repost before election day.

63

3 Comments

As California continues to face an unprecedented housing crunch, accessory dwelling units (ADUs) have emerged as a promising solution to bolster housing stock in existing neighborhoods. The journey to approval can vary widely, raising the question: how long does it take to get a building permit approved? We have put together a guide to Understanding the ADU Permitting Process in California. Access it here: https://bit.ly/3xQP7dX We hope it's beneficial to your ADU planning. #accessorydwellingunit #accessorydwellingunits #adu #aduamerica #adudesign #aduready #awesomedwellingunit #casita #guesthouse #builder #construction #contractor #steelbuilthome #prefab #modularhome #california #californiarealestate #Sacramento #LosAngelesRealEstate #OCRealEstate #design #designbuild #garageconversion #homedesign #homeremodeling #interiordesign #renovation #home #homeoffice #housing #modularhome #prefab #DesignToDoorstep

3

I spend most of my week analyzing multifamily rental trends and connecting with both market-rate and affordable housing owners across the Greater Sacramento area. Here are my biggest takeaways: 1. In Sacramento, rent increases have slowed down since July and continued to decrease in August. The decrease was about 30 basis points. This trend coincides with the start of the school year, a time when families are less likely to move because it could mean changing schools for their children. August is historically a tough month for attracting renters. 2. Despite the slower rent growth, more rental units have been leased than new units have been delivered in 2024. By the end of August, 2,800 units were rented out, while only 2,000 new units became available. The demand is particularly strong for high-end, luxury apartments. Since the start of the year, about 2,000 units of high-quality (four- and five-star) apartments have been leased. A significant number of new luxury units are being built, which might lead to more vacancies if the demand doesn't keep up. In 2025 and 2026, more than 1,000 additional units are expected to enter the market. 3. Affordable or workforce housing has been struggling to attract renters. Since the beginning of the year, fewer than 100 units have been leased. This segment of the market has faced negative net absorption for 10 consecutive quarters, starting from late 2021. 4. There are currently 3,000 rental units under construction, which represents a 2.1% increase in the market size. This is the smallest increase in construction since mid-2020. New construction projects have been slowing down, with only 560 new units starting in 2024, the lowest number since 2016. Most new construction is concentrated in Downtown Sacramento and neighboring areas like West Sacramento and North Sacramento/Natomas/North Highlands. These areas make up about two-thirds of the new construction. Other areas, particularly high-income neighborhoods like Roseville/Rocklin and Elk Grove, have low vacancy rates below 5%. 5. If interest rates decrease, there could be more new construction in suburban areas where vacancies are currently low. [email protected] Office: 916.724.1271 Cell: 707.656.1180

10

Hello Bay Area Friends! Want to learn more about ADUs (Accessory Dwelling Units)? Come join Brenda Chen and I for a great networking dinner where we will dive into the ins and outs of building ADUs! I will be an open book and share everything I learned on my projects. Please be sure to RSVP for the event, link in the comments. Looking forward to seeing you there! #ADU #Realestateinvestments

34

2 Comments

For the 3rd time in recent years, California voters rejected efforts to expand rent control by a resounding 20-point margin. The latest attempt, #Proposition33, would have repealed the 1995 Costa-Hawkins Rental Housing Act, a relatively balanced housing policy aimed at incentivizing new housing development by prohibiting municipalities from capping rent on vacant units, single-family homes and apartments built after Feb. 1, 1995. With a statewide housing shortage totaling one million units, the solution to California’s affordable housing crisis is clear:  WE NEED MORE SUPPLY!! Additionally, the Los Angeles Times published a new article with the #Prop33 election outcome. https://lnkd.in/gUZp5HF2   For more insight, see the link to my blog below:  https://lnkd.in/grxMpqzg

10

1 Comment

 Alice Leung is the Vice President for Platform and Product Strategy at Brick & Mortar Ventures. She began her career working on major construction projects in the San Francisco Bay Area, including UCSF Medical Center and Lucile Packard Children’s Hospital. During this time, she championed the use of construction technology to improve efficiency on project sites. Her experience working in the US and Singapore demonstrates her understanding of the construction industry on an international scale. On Wednesday 5th June, at Bricks & Bytes, we sit down with Alice for round 2! And we need your help. 𝐋𝐞𝐭 𝐮𝐬 𝐤𝐧𝐨𝐰 𝐲𝐨𝐮𝐫 𝐜𝐡𝐨𝐢𝐜𝐞 𝐨𝐟 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧 𝐢𝐧 𝐭𝐡𝐞 𝐜𝐨𝐦𝐦𝐞𝐧𝐭𝐬 𝐛𝐞𝐥𝐨𝐰 👇👇👇 QUESTIONS: A) What excites you most about the startups Brick & Mortar Ventures invests in? B) What surprised you most about the differences in the construction industry between the US and Singapore? C) Other (please post below)

48

7 Comments

Since 2017, California has taken an approach to addressing its middle-scale housing challenges, with a focus on expanding affordable housing options like ADUs (Accessory Dwelling Units). Through targeted reforms, the state has streamlined the process for developing these smaller housing units, directly responding to the growing demand for diverse, accessible housing solutions. By leveraging insights from successful case studies across other regions, California has implemented policies that reduce barriers and increase housing supply without altering the character of existing communities. This thoughtful approach, supported by the Casita Coalition and Zillow, offers a clear model for other states facing similar housing crises. The key lesson: evidence-based policy changes, informed by proven strategies, can play a crucial role in addressing housing affordability and accessibility.

25

LAist reports that Los Angeles housing officials have released a long-awaited report recommending changes to the city’s rent control policies. If adopted by the city council, the new proposals would significantly lower rent hikes next year for the 42% of L.A. residents living in rent-controlled housing. This is one reason Paladin Realty Partners, LLC avoid investing in rent-controlled (1978 and older) apartments in L.A. As rent control erodes operating margins, owners have less incentive to invest in property upkeep, potentially leading to blighted conditions in many neighborhoods. Over time, properties may be removed from the rental market, worsening the #AffordableHousing crisis. https://lnkd.in/gV5RhGWi

6

2 Comments

Rent control in California, as we know, leans to be more a Pro-Democrat piece of legislation. But really, it’s not a universally shared measure that all of them agree on. The reality is that there is a fierce debate on the rent control measure amongst the democratic party. More than you’d be led to believe. [May be behind paywall.] #Prop33 #RentControl #California #BayArea

3

"Gosh.. there is never anything to watch on TV!" 😡 If that sounds like you, and you are curious about the biggest challenges housing providers face today, we've got you covered. In our latest video, we sit down with John Edmond, Executive Director of the Apartment Association of Southern California Cities, to discuss everything you need to know—completely free. Here’s what you’ll learn: • Major Concerns for Housing Providers 🏘️ • The Crucial Role of the Apartment Association • Membership Benefits You Can't Ignore • How COVID-19 Has Impacted the Industry • The Power of Advocacy and Community 🗣️ • Real Stories from Housing Providers • Recent Legislative Changes & Statewide Rent Control • Long Beach Housing Policies and Development Opportunities • New Zoning Laws & Balcony Inspection Requirements • Insurance Challenges and Solutions 📋 • Costa Hawkins Act Explained • Future Policy Initiatives 🗓️ --- Don't miss out on these game-changing insights! Watch now and stay ahead in the real estate world. Click the link in our bio to dive in. 🎥 --- 🎥 Watch now to make sure you stay ahead of the curve! Simply click here: https://buff.ly/3KRRbFm   --- #InvestWisely #MultifamilyLongBeach #RealEstateInvesting #SageRealEstate #OwnMoreDoors #Youtube #RealEstateInvesting #ApartmentAssociation #HousingProvider #AffordableHousing #CaliforniaBalconyLaw #LongBeach

1

🚨 New Housing Ordinance in Honolulu to Boost Affordable Rental Units 🏘️ Honolulu's housing market is set for a much-needed boost with the recent passage of Bill 3, signed by Mayor Rick Blangiardi in August. The new ordinance provides enhanced post-construction grants for privately financed rental housing projects, aiming to make these developments more financially feasible amid high interest rates, construction costs, and supply chain issues. Key incentives include: 💰 $40 per square foot for units under 300 sq ft. 🤑 $12,000 per unit for units over 300 sq ft. 💡 Key Takeaways: Affordable Housing: Designed to create units that local residents can afford, especially younger generations and families. Financial Incentives: Developers will benefit from increased grants, making projects more viable despite current market challenges. Urban Development: Small parcels in the urban core will be rehabilitated, preserving neighborhood character while maximizing space for housing. This is a good step forward. Personally, Bill 7 was hyped up to be a solution for affordable housing. Only a few seasoned developers have been able to successfully deliver a final product. This is meant to be an extension of that Bill. https://lnkd.in/gwmNDAcD #AffordableHousing #HawaiiRealEstate #UrbanDevelopment #MultifamilyInvestments #Honolulu

3

💡Support Affordable Housing in Every Neighborhood!💡 Los Angeles is in the midst of a housing crisis, and the current CHIP Ordinance, while a step forward, doesn’t go far enough to address the city’s needs. Including single-family zones in CHIP incentives is a critical move to ensure we create enough affordable housing for everyone. City Planning’s own Housing Element Rezoning Program report (Exhibit D, Option 1) outlines a way to make this inclusion possible. This would: 1️⃣ Expand affordable housing options citywide, not just in lower-resourced areas. 2️⃣ Help workers live closer to their jobs, reducing long commutes. 3️⃣ Fulfill state requirements to Affirmatively Further Fair Housing (AFFH) and avoid legal challenges like the Builder’s Remedy. Excluding single-family zones perpetuates segregation and keeps the best-resourced areas inaccessible for many Angelenos. By adopting Exhibit D Option 1 and removing blanket exemptions for the Coastal Zone, we can build a more inclusive and equitable city. 👉 Take action now to urge L.A. leaders to adopt these changes: Sign here! https://lnkd.in/gCWZdANK Let’s work together to make Los Angeles a place where everyone can find a safe, affordable home. #AffordableHousing #CHIPOrdinance #HousingCrisis #LosAngelesHousing #FairHousing #UrbanDevelopment

11