With the passage of Oregon’s statewide rent control law, it appears that investment in multifamily properties has declined significantly, especially from out-of-state investors. This gives real estate investors a lot to think about. You can read the full article from Multifamily NW here:
Following Statewide Rent Cap Oregon Multifamily Investment Drops 38%
By: Emily Anderer In the wake of Oregon’s new statewide law capping apartment rent growth, multifamily investment – particularly from out-of-state buyers – has significantly declined. This may hold lessons for states around the country grappling with rent control measures.
In fact, in the first three months that rent control became law, investment in multifamily properties was down 38 percent compared to that period last year. In her article, Emily Anderer notes:
Over this three-month period [March–May] in the current year, 60% of multifamily investment in Oregon came from in-state buyers. By contrast, during the same period in 2018, just 22% of capital came from in-state buyers. In the wake of the rent cap, out-of-state buyers are choosing to invest substantially less in Oregon multifamily.
It appears that out-of-state investors are concerned that further rent control measures are coming. The current rate of 7 percent plus inflation is higher than typical rent increases, but people are likely worried about where this is going and for now, some appear to be taking their real estate investment dollars elsewhere.
My goal as a real estate investment broker is to help you understand how to capitalize on the latest trends and to increase your personal net worth and safety. The professionals at Pacwest Commercial Real Estate are Eugene multifamily experts. Call today if you would like to discuss this further at 541-912-6583.
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