Five policies from the Biden administration that could affect the multifamily housing industry
Although the 2020 election felt more like an election week than an election day, ultimately Joe Biden emerged as the new President of the United States. As the smoke has cleared on the election itself, attention has turned to President Biden’s administration. As private equity lenders, we are naturally examining what the new administration will mean for the real estate development market. Specifically, what will the new administration’s policies mean to a housing market that has shown strength despite an economy that has been heavily impacted by the pandemic?See full article
In the final quarter of 2020, overall occupancy dropped by 1 percent to 92.6 percent in Seattle. King County dropped to 92.4 percent, Snohomish County decreased to 93.8 percent and Pierce County saw a reduction to 95.3 percent. Rents followed the same trend, dropping by 3.1 percent to $2.19 per square foot. Pierce County rents saw a slight increase to $1.57 per square foot and Snohomish County held steady at $1.71 per square foot.
Portland’s multifamily housing market remains strong. Clackamas and Clark counties posted 2.9 percent and 4.2 percent annual rent growth respectively, compared to Portland, where rents dropped by 2.4 percent. Across the region, occupancy fell by 0.4 percent but remains healthy at 92.9 percent. Transactions have decreased by 26 percent compared to the past three-year average, with only 139 transactions for the year.
The Boise office market continues to see strong asking rates and steady vacancy. In the final quarter of 2020, the region also saw a high level of investment activity. TELEO Capital announced it will be moving part of its corporate headquarters to Boise to operate a new $250 million private equity fund. At the start of Q4, Clearwater Analytics announced it was prepping for an IPO with a company valuation of $3 billion. These developments will strengthen the office real estate market and bring new interest to the area.