Rental Housing Journal Metro February 2017 by Professional Publishing, Inc

Rental Housing Journal Metro

February 2017

2. Handling Employee Evictions 4. Home Values Rise 7 Percent in 2016 5. Okay Landlords - It's Time to Listen Up! 6. Happy New Year Everyone! 7. U.S. Home Sales Finish Strong in 2016

8. 2017 Brings Optimism For Residental Real Estate Prospects Zillow Gives Multifamily Marketers "Boost" With Precision Targeting 9. Are Urban Areas Running Out of Millennial Renters? 10. Pending Home Sales Bounce Back 11. Pockets of Affordable Housing Exist Within the Most Expensive Markets

12. Prepared Property Managers Can Handle What Comes Down the Pipeline 13. Examining the National Boom in Market Demand for Luxury Apartments 14. Dear Maintenance Men – Caulk, Plumbing, Doors and Curtains 17. U.S. News & World Report Unveils the 2017 Best Places to Live

Portland/Vancouver

www.rentalhousingjournal.com • Professional Publishing, Inc

Published in association with: Multifamily NW; Rental Housing Association of Oregon; IREM & Clark County Association

Portland Proposes Landlords Pay to Move Evicted Tenants

Home Buyers in Expensive Markets See a Longer Wait to Break Even

H A

new housing proposal from the City of Portland would require landlords who raise rent more than 10 percent, to pay tenant moving costs, including costs for evicted tenants, according to several reports. The proposed ordinance would require landlords to pay renters moving costs within 14 days of sending them an eviction notice. Landlords would also have to provide relocation assistance to tenants if they raise their rent by 10 percent or more in one year, according to Oregonlive.com. The relocation assistance requirement is part of the new Portland City Council’ss first two housing proposals, submitted by Commissioner Chloe Eudaly and Mayor Ted Wheeler. Landlords would have to pay renters between $2,900 and $4,500, depending on the number of bedrooms. Commissioner Eudaly, who campaigned on promises to better protect Portland renters, has drafted the ordinance—and has the support of Mayor Wheeler, according to reports. Willamette Week first reported the new proposed ordinance. "We thought we needed to take swift action to protect renters in our housing emergency," Eudaly told the newspaper. "This is intended to protect tenants, not take rights way from landlords." continued on page 16 Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007

It takes at least 1.5 years longer to break even on buying a home in the Bay Area than it did a year ago

ome value appreciation is expected to slow in some of the nation's most expensive markets, and as a result, it now takes longer to break even on a home in those markets compared to renting it. Nationally, buying a home becomes a better financial decision than renting it in just under two years, according to the Q4 2016 Zillow® Breakeven Horizoni. When home values grow quickly, home equity also accumulates faster, helping to offset and eventually recoup the large upfront costs of buying a home more quickly. But home value appreciation is

slowing down in some places, especially expensive areas like Silicon Valley and the San Francisco Bay Area. This makes building home equity a slower process, and the Breakeven Horizons in both the San Jose and San Francisco metros are nearly two years and 1.5 years longer, respectively, than they were the year before. No other major metros saw the Breakeven Horizon grow as much in a single year. Home value appreciation isn't slowing everywhere. Home values in the Washington metro, for example, are expected to grow at a faster pace over the

next year after staying largely flat recently, leading to a shorter Breakeven Horizon. Buyers in this area can now expect to break even after 3.5 years. Overall, U.S. home value growth accelerated at the end of 2016, ending the year at a 6.8 percent annual appreciation rate. At the same time, rent appreciation slowed significantly, only growing at 1.5 percent annually. These shifting dynamics can make the question of whether to buy or rent less clear in many markets. continued on page 15

Jobs For Property Managers Pay Higher Than Average U.S. Salary by John Triplett, Desert Path Marketing Group

obs for property managers pay higher than the average salary in the U.S. at $55,380 per year and show growth potential of 8 percent through 2024, according to a release. The property managers jobs were in a list put together by CareerToolkit.com of high paying jobs that anyone can review free of charge. The salaries range from $50,000K up to $100,000 and more per year. The report chose $50,000 as highpaying since the average median wage is $36,200 per year according to the Bureau of Labor Statistics (BLS) May 2015 reports. “Employment of property, real estate, and community association managers is projected to grow 8 percent from 2014 to 2024, about as fast as the average for

PRSRT STD US Postage PAID Portland, OR Permit #5460

all occupations,” according to the BLS. “Job opportunities should be best for those with a college degree in business administration or real estate and for those who obtain professional credentials,” according to the BLS website. While the average salary was $55,380, there is a range among property managers and association managers, according to the survey. • Median salary - $55,380 • Salary range - $28,490 to $123,790 per year • Job growth – 8% (as fast as average) • Typical education – High school diploma or equivalent continued on page 16

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Rental Housing Journal Metro

Handling Employee Evictions

any communities require their employees to live on-site, and the often include an apartment as part of their compensation. As in any business, management must sometimes terminate employees. This article will examine the acceptable grounds for termination and the procedures to require terminated workers to vacate the premises. Most employees are “at will.” This means they work at the pleasure of the employer. The law presumes every employment contract for an indefinite term to be terminable at will. As an “at will” employee, his or her employment is for an indefinite term at sufferance. Either party could terminate employment at will for no cause or any cause. Another term for this is the employment-at-will doctrine. Management can fire an employee for good cause or no cause, but not for “bad” cause. For example, an employer and employee agree that the employee will do the required work and employer will provide the necessary working conditions, as well as pay the employee for the work done. However, there cannot be a guarantee of continued employment or tenure. The very nature of the “at-will” precludes any claim for a prospective benefit. Either employer or employee may terminate the contract at any time.

property, inability to perform the duties of the job, and insubordination. The employer can terminate the employment if he or she makes a subjective determination that the employee’s work is unsatisfactory. Often times, multi-housing employees receive housing as part of their compensation. The Arizona Residential Landlord and Tenant Act does not protect these individuals in employeetermination situations.

Good Cause Good cause for termination includes lying, fighting, destroying company

Management should draft a written agreement stating that employees are not

eviction requesting possession of the unit, fair rental value from the termination date, attorney fees and costs. This procedure is identical to a normal eviction for nonpayment of rent. Following the hearing and judgment, the constable can evict the employee under a writ of restitution after five days.

A.R.S. § 33-1308 states in part: Exclusions from application chapter

Unless created to avoid the application of this chapter, the following arrangements are not covered by this chapter... 5. Occupancy by an employee of a landlord as a manager or custodian whose right to occupancy is conditional upon employment in and about the premises.

residents; the agreement is not a lease and the time frame for vacating the unit following termination. If the employee is a current resident, the landlord should cancel their lease agreement and inform the individual that the employee agreement takes precedence over the lease. Once management terminates an employee, it should personally deliver to him or her a five-day notice to vacate under the conditions of A.R.S. § 12-1173 (the forcible detainer statute). However, if, at the time of hiring, the employee signed an agreement specifying the amount of time he or she has to vacate, this takes precedence over the statute. Additionally, it is a good idea to issue this notice at the time of termination. Although lockouts are permissible as long as they do not cause a breach of peace, most courts do not look favorably on them. For example, a judgment has in the past awarded $5,000 in punitive damages to a former employee because of a lockout situation. At the end of the notice period, management may file a forcible detainer

Example Consider the following example: Clydesdale Apartments hire Miller Tyme and his girlfriend, Amber Lager, to perform maintenance and housekeeping duties. Apartment manager Bud Wizer requires that the two sign an employee agreement stating they must move out within 48 hours in the event of their termination. After a few weeks, Bud Wizer smells alcohol on their breath, frequent absences and poor work performances. The property owners, Mr. Brew and Mr. Stout, elect to terminate Miller Tyme and Amber Lager. They verbally request that the two vacate within the 48-hour period stated in their contract. Miller Tyme and Amber Lager refuse to move and the owners file eviction proceedings against them. At court, Judge Fosters dismisses the eviction because management did not deliver written notice. On the way out the courthouse, Miller Tyme tells Amber Lager, “It doesn’t get any better than this.” Andrew M. Hull, Esq. Hull, Holliday & Holliday, PLC www.doctorevictor.com • 602.230.0088

FAIR HOUSING FAIR

FAIR HOUSING FAIR NEIGHBOR

NEIGHBOR

Rental Housing Journal Metro · February 2017

Rental Housing Journal Metro

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Rental Housing Journal Metro · February 2017

Rental Housing Journal Metro

Home Values Rise 7 Percent in 2016

he median home value in the U.S. is now $193,800, according to Zillow's December Real Estate Market Reports. Rents grew 1.5 percent annually to a $1,403 median monthly payment. Home values rose 6.8 percent from last December, the fastest annual pace of the year. The Zillow® Home Value Indexi (ZHVI) is $193,800, just below the highest value set in April 2007, according to the December Zillow Real Estate Market Reportsii. Home value appreciation slowed slightly in Portland, but remains the fastest in the nation, up 13.8 percent from last December. Tampa, Seattle and Dallas

this year. Especially lack of available entry-level homes coupled with high demand will continue to rapidly drive up home values in the near future. Buyers should make sure they get pre-approved for a mortgage, and be prepared to move quickly, especially in hot markets like Seattle and Portland. It's not uncommon for buyers to make at least two offers during their home search." Rent appreciation stabilized at 1.5 percent annual growth, less than half the pace rents were growing at last year. The median monthly rent payment in the U.S. is $1,403.

The fastest rent appreciation occurred along the West Coast. Seattle led the nation in rising rents, with rents growing 8.4 percent in December, followed by Portland and Sacramento. Inventory is still a concern for home buyers across the country; finding an affordable home is the top concern for people searching for homesiii. There are 4.6 percent fewer available homes than there were a year ago. Among the nation's largest markets, Boston and Minneapolis saw the biggest declines in inventory over the past year.

Metropolitan Area

Zillow Home Value Index (ZHVI)

Year-over-Year ZHVI Change

Zillow Rent Indexiv (ZRI)

Year-over-Year ZRI Change

Year-over-Year Inventory Change

United States

$193,800

6.8%

$1,403

1.5%

-4.6%

New York/Northern New Jersey

$402,700

6.3%

$2,392

0.2%

-9.0%

Los Angeles-Long Beach-Anaheim, CA

$594,100

6.5%

$2,625

5.3%

-5.0%

Chicago, IL

$204,700

5.4%

$1,632

-0.2%

-8.1%

Dallas-Fort Worth, TX

$201,400

11.6%

$1,560

3.9%

-7.7%

Philadelphia, PA

$214,800

4.6%

$1,573

0.9%

-12.1%

Houston, TX

$176,100

6.6%

$1,556

-1.5%

0.6%

Washington, DC

$380,200

3.4%

$2,122

0.7%

-13.8%

Miami-Fort Lauderdale, FL

$247,000

9.0%

$1,871

2.3%

14.6%

Atlanta, GA

$173,300

7.4%

$1,333

4.6%

-3.2%

Boston, MA

$412,300

6.5%

$2,329

3.7%

-21.6%

San Francisco, CA

$829,700

4.8%

$3,371

1.0%

-6.5%

Detroit, MI

$135,900

10.0%

$1,170

3.1%

-17.9%

Riverside, CA

$319,400

6.8%

$1,746

3.2%

-9.0%

Phoenix, AZ

$230,500

6.8%

$1,304

4.2%

4.9%

Seattle, WA

$413,700

11.7%

$2,097

8.4%

-8.3%

Minneapolis-St Paul, MN

$236,200

6.5%

$1,558

3.9%

-19.9%

San Diego, CA

$529,500

6.3%

$2,443

5.3%

-0.6%

St. Louis, MO

$148,900

7.1%

$1,126

0.3%

-13.0%

Tampa, FL

$179,600

11.8%

$1,340

3.3%

-11.6%

Baltimore, MD

$257,800

3.8%

$1,728

0.8%

-14.1%

Denver, CO

$355,400

9.6%

$2,003

2.6%

2.7%

Pittsburgh, PA

$133,700

4.7%

$1,074

-1.9%

-1.0%

Portland, OR

$354,400

13.8%

$1,805

6.8%

1.9%

Charlotte, NC

$168,000

7.4%

$1,246

2.0%

-10.4%

Sacramento, CA

$352,700

7.4%

$1,708

6.7%

-4.0%

San Antonio, TX

$156,900

6.4%

$1,324

1.8%

8.0%

Orlando, FL

$200,500

10.7%

$1,387

3.4%

-12.3%

Cincinnati, OH

$148,700

5.8%

$1,249

2.1%

-16.8%

Cleveland, OH

$130,700

4.7%

$1,143

1.5%

-10.0%

Kansas City, MO

$152,900

5.9%

$1,246

3.8%

-18.4%

Las Vegas, NV

$215,400

9.8%

$1,245

2.7%

25.7%

Columbus, OH

$162,200

5.1%

$1,292

1.7%

-16.5%

Indianapolis, IN

$134,300

2.1%

$1,186

0.3%

-12.9%

San Jose, CA

$963,700

4.0%

$3,470

0.9%

-13.9%

Austin, TX

$261,500

8.2%

$1,698

0.8%

15.1%

Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow

saw similarly high home value growth, with home values growing nearly 12 percent from a year ago. Hot home values characterized 2016 all the way to the end – and they show no sign of slowing in 2017. However, as the new year begins, flattening rents could take the heat off buyers who are struggling to find a home amid low inventory and give them more time to search for the right home. "Home values ended 2016 growing at their fastest pace of the year, which could be an indication of what to expect in 2017," said Zillow Chief Economist Dr. Svenja Gudell. "Lack of inventory will remain a major concern for home buyers

also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle. Zillow and Zestimate are registered trademarks of Zillow, Inc. i The Zillow Home Value Index (ZHVI) is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted.

The Zillow Real Estate Market Reports are a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Real Estate Research. For more information, visit www.zillow.com/research/. The data in Zillow's Real Estate Market Reports are aggregated from public sources by a number of data providers for 928 metropolitan and micropolitan areas dating back to 1996. Mortgage and home loan data are typically recorded in each county and publicly available through a county recorder's office. All current monthly data at the national, state, metro, city, ZIP code and neighborhood level can be accessed at www.zillow.com/local-info/ and www.zillow.com/research/data. ii

This survey was conducted from Nov. 30, 2015 through Dec 2, 2015 of 1,010 adults by ORC International on behalf of Zillow, Inc. iii

The Zillow Rent Index (ZRI) is the median Rent Zestimate® (estimated monthly rental price) for a given geographic area on a given day, and includes the value of all single-family residences, condominiums, cooperatives and apartments in Zillow's database, regardless of whether they are currently listed for rent. It is expressed in dollars. iv

Zillow - http://www.zillow.com

Rental Housing Journal Metro · February 2017

President: Ron Garcia Vice President: Phil Owen President Elect: Mark Passannante Secretary: Lynne Whitney Treasurer: Sandra Landis

President’s Message

Ron Garcia, RHA Oregon President

Past President: John Sage Office Manager: Cari Pierce

10520 NE Weidler, Portland, OR 97220 (503) 254-4723 • Fax (503) 254-4821 info@rhaoregon.com • www.rhaoregon.org

Okay Landlords – It’s Time to Listen Up!

an you hear it? That’s the sound of the Oregon Legislature, opening up for its full session and things are getting pretty loud as the Speaker of the House, Tina Kotek proposes the most far-reaching changes to Landlord Tenant law in the state’s history. Being a rental property provider, this is going to affect what you do, how you do it, and may even challenge your desire or willingness to keep on doing it. Whether you’re a seasoned investor, a new landlord (intentional or not); if you’re a large company or have a single rental; and whether you are liberal or conservative, Democrat, Independent or Republican – the negative financial consequences of this legislative agenda are real. So pick up your bullhorn and join the din – it’s time to reach out and let your mayor, commissioner, and government officials know how you feel. This means you! I know this process can be discouraging. To quote a young, new-age troubadour, singer Taylor Swift - “It’s hard to fight when the fight ain’t fair.” But here’s the drift: The need for rent control and the elimination of no-cause terminations are no longer just the sound bites of radical tenant groups who proclaim these are the solution to a selfdescribed housing crises. They are the

possible (and perhaps probable) outcome of this year’s political changes. From small town mayors to the Governor’s office, rental property owner’s rights and bank accounts are being targeted. In Portland, newly elected Mayor Ted Wheeler has picked up the drum, seeking to enact mandatory inspections and oversight of applications and rental contracts, paid for by a surcharge assessed on all property owners. Welcome to the new normal. For many years, the state legislature has worked on new laws through the Landlord Tenant Coalition, to help formulate and draft new housing regulations that were equitable and fair. RHAO has always been at the table, happy to participate, even though we felt like we gave up a lot of ground at times. Last year, during the “Short Session”, legislators decided to forego any efforts of the LTC . In an unprecedented move they sent onerous housing measures straight to committee and then they worked to get them passed, (like requiring landlords to pay for replacement housing when terminating tenants, and to enact inclusionary zoning - which is the first step towards rent control). Inclusionary zoning became law. Thankfully, other components were not passed. Maybe the real fallout was

that the coalition (as dysfunctional as it may have been at times) has now been abandoned in the process. This year, that same political body has decided to up the stakes and go for it all with no input from either party. Is this a fair process? Not when one side’s agenda is the only one being heard! Generally, when the news reports that a city or state is one of the fastest appreciating real estate markets in the country, it has been seen as good news. But when the discussion turns to rising rents, suddenly those fortunate enough to own real estate are made to be responsible to cure the social and economic problems they had no part in creating. So what if the landlord has to pay taxes, insurance and mortgages; be responsible for improvements and repairs; pay ever increasing water bills and deal with screening guidelines that seem to say that anyone who shows up deserves to be given the keys. So what if they have to pay for the cleanup of the vacating tenants, and fight the Section 8 housing authorities for reimbursements from tenants who have no other resources to pay for the damages they created, but were entitled to live there. And so what if the owner’s wages haven’t increased in the last 10 years either, to keep up with the rising costs of

ownership. And so what if these are the same folks who had to pay hundreds of dollars monthly out of pocket just to keep the property from foreclosure during the last 10 years, throughout the biggest real estate crisis in the nation’s history. Today, somehow those people who have worked, scraped and saved to own a piece of the once called “American Dream” have now become the responsible party - obligated to fix the problems brought on by long range planning missteps that have created a lack of good rental supply. Rental property owners are being unwittingly “drafted” into a war on poverty, and they are expected to pay for it out of their personal income, and made to feel as though it’s expected of them to do so by their elected officials! If it sounds like I am being an alarmist, let me claim to be acting only as the town crier sounding the bells for protection. It is hard to win a fight that’s not fair – but one thing is for sure, it’s worth fighting for and making some noise.

Ron Garcia Rental Housing Alliance Oregon President

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Real Estate Opportunities in Investing (ROI) Finding Investing Success in Today's Housing Market Rental Housing Journal Metro · February 2017

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Oregon, We Have A Problem! Jeff Edinger 2017 Board President

he Portland City Council just passed an ordinance requiring landlords to pay relocation costs between $2,900 and $4,500 if rents are raised more than 10% in a year or if a landlord decides not to renew a lease. That’s right, you heard correctly. If a landlord chooses not to renew a lease, and they do not provide an acceptable legal reason why the lease should not be renewed, they will be required to pay up to $4,500 in relocation fees to the resident. The actions of the City Council may be well intended but they are short sighted. One of the biggest problems with measures such as the one passed by the Portland City Council, and Rent Control measures being considered at the state level, is these actions actually dissuade the construction of new housing. These measures provide another roadblock, another disincentive, to adding the additional supply that we so desperately need. What the Council doesn’t realize, is that they have actually done a disservice

to renters. This ordinance gives renters the false hope that the City Council can resolve the housing crisis with price controls. When in fact, price controls, and rent limitations, do nothing to contribute to the solution. Quite the opposite, they inhibit the construction of more supply. At the very least, any short-term tools used to help mitigate the current housing emergency, should only be considered if accompanied by equally strong measures to address the root cause of inadequate supply. The City Council asked for solutions. We provided a solution in the Oregon Tenant Assistance Program which is a voucher-based assistance program. But as Councilor Eudaly explained, she will not consider our opinions nor our solutions because we are opposed to rent stabilization, we are opposed to rent control. She will not listen to a landlord and property management organization representing over 200,000 units throughout our state no matter the solutions we present. Ignoring the experts certainly is not a very effective way to make legislation or to build consensus around real solutions. Multifamily Northwest was at the City Council Meeting to persuade the Council that the adoption of the ordinance will

only exacerbate our current supply problem. A lot of landlords and landlord organizations were at the Council Meeting. Unfortunately, our professional opinions were neither valued nor listened to. The City Council did not take into account any supply side measures and the ordinance was undertaken without even a feeble attempt at engagement with MFNW or other industry experts. While Counselor Eudaly remains both blind and unwilling to discuss real solutions, your association does not. Consider this brief list of just a few ideas that would immediately help stimulate the addition of more supply; implementation of vertical housing tax credits, density bonuses, land write downs on publicly owned parcels, expedited permit review times, reduction in permits and system development charges, fees in lieu of inclusionary zoning requirements, and targeted expansion of the urban growth boundary to take pressure off land prices in the core. Additional alternatives to addressing the immediate housing emergency; implementation of the proposed Oregon Tenant Assistance Program, emergency expansion of the Section 8 voucher program and the use of other incentive programs which encourage rather penalize landlords.

Upcoming Calendar 2/10/2017 2/15/2017 2/15/2017 2/16/2017 2/21/2017 2/22/2017 2/23/2017 2/23/2017 2/24/2017 2/27/2017 2/28/2017 3/1/2017 3/8/2017 3/8/2017 3/10/2017

There are more people moving here than we have places for them to live. The housing crisis applies to both rental properties and for-sale properties. Oregon has a drastic undersupply of housing units. We are the most popular destination in the nation, the biggest inmigration state, which is a good thing, but we do not have enough homes to house our growth. We need real solutions. Unfortunately, the City Council chose to adopt, unanimously, short-sighted measures which will only further serve to exacerbate the supply problem. In an effort to combat ill-conceived and harmful legislation, MFNW has established a Defense Fund. We need your help! Your donation directly supports the critical efforts of our legal team and public relations team. Please go to our website multifamilynw.org and click on the Donate Now button. To learn more, give us a call or e-mail info@multifamilynw.org

Form of the Month - Mold & Mildew Addendum

It's the Law - 30, 60, 90: Making Sense of the New Notice Rules Curb Appeal New Hire Fair Housing Fair Insurance Claims 101 General Fair Housing Unit Inspections and Turnover Techniques Multifamily NW Blood Drive RESCHEDEULED - It's the Law - Disparate Impact Issues: How Do We Screen Criminals Now?! Oregon Landlord Tenant Law Part II HR Issues: HR Handbooks ( Rescheduled January Brown Bag) Landlord Study Hall: Driving me Buggy - How to Handle Habitability Issues. Fair Housing Stereotyping and Bias HR Issues: Safety/Worker's Comp It's the Law - What Now: The Latest Tactics Used By Tenants’ Attorneys

Wear & Tear Addendum M070 OR-WA Take advantage of this brand new form! It’s designed to help communicate wear and tear damage rules for less confusion at the end of the tenancy.

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Rental Housing Journal Metro

U.S. Home Sales Finish Strong in 2016 RE/MAX National Housing Report on MLS Data from 53 Metro Areas

apped off by a strong December, 2016 was the best year for U.S. home sales since the recession, according to the January 2017 RE/MAX National Housing Report. Home sales in 2016 were the highest in the housing report's eight-year history, topping the sales of 2015, the previously strongest year. Nine months of 2016 posted sales greater than in the same months of 2015. According to the 53-market report, the trend of rising prices and shrinking inventory continued in December, even though December was one of the three months that trailed 2015, with sales 1.8% below December 2015. Even so, nearly half of the markets reported increased sales over December 2015, and almost two-thirds saw sales higher than November 2016. The median increase over November 2016 was 1.7%. The median sales price of $216,000 was 4.9% above one year ago and only 1.8% below November's. Inventory declined 17.9% year-overyear in December, continuing a year-long streak of double-digit declines. Months Supply of Inventory was 4.2, with 47 markets below the 6 months normally considered a balanced market. The average Days on Market of 62 was the lowest of any December in the report's history. For this month's housing report infographic, visit rem.ax/2cYFT50.

1.8% from November but up 4.9% from December 2015. Of the 53 metro areas surveyed, all but two (Des Moines, IA and New Orleans, LA) saw year-over-year increases or remained unchanged with nine rising by double-digit percentages. The largest double-digit increases were seen in Birmingham, AL +17.1%, Tampa, FL +16.8%, Charlotte, NC +13.2%, Seattle, WA 12.9% and Orlando, FL +12.3%.

"Much like 2015, we saw a mostly healthy housing market in 2016 that posted steady growth in sales and prices," said Dave Liniger, RE/MAX CEO, Chairman of the Board and Co-Founder. "We're back to pre-recession levels in many markets, with 2017 forecast to be another solid year. We'll have to wait and see what impact rising interest rates will have."

December 2015. But nearly half of the 53 metro areas experienced an increase in sales year-over-year, with three experiencing double-digit increases. The markets with the largest increase in sales included Wilmington/Dover, DE +21.4%, Honolulu, HI +19.7%, Augusta, ME +16.1%, Las Vegas, NV +7.9% and Providence, RI +7.3%.

Closed Transactions Of the 53 metro areas surveyed in December, the overall average number of home sales fell 1.8% compared to

Median Sales Price – Median of 53 metro median prices In December, the median of all 53 metro Median Sales Prices was $216,000, down

Days on Market – Average of 53 metro areas The average Days on Market for homes sold in December was 62, up three days from the average in November 2016, but down five days from the December 2015 average. The two metro areas with the lowest Days on Market were Omaha, NE and Denver, CO both at 36. The highest Days on Market averages continued to be in Augusta, ME at 141, and Burlington, VT at 101. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed. Months Supply of Inventory – Average of 53 metro areas The number of homes for sale in December was down 14.0% from November, and down 17.9% from December 2015. Based on the rate of home sales in December, the Months Supply of Inventory was 4.2, compared continued on page 15

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Rental Housing Journal Metro · February 2017

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Rental Housing Journal Metro

2017 Brings Optimism for Residential Real Estate Prospects

eal estate professionals are as busy as ever and optimistic about the immediate future. According to the West Penn Multi-List, Inc. and its monthly residential real estate report, both home sales and sale prices were up in 2016, and are poised to continue in that direction into 2017 as well. "With lower unemployment rates and improved wages, we continue to be optimistic about the 2017 housing market," said Ron Croushore, current president of West Penn Multi-List, Inc., and owner and CEO of Berkshire Hathaway HomeServices The Preferred Realty, Pittsburgh. Most of the months of 2016 offered similar monthly housing market highlights, resulting in positive statistics for 2016 as a whole, as compared to 2015: • Closed sales are up 4.88 percent (27,974 units in 2016 versus 26,673 in 2015); • Closed sales volume is up 3.65 percent ($4,689,032,331 in 2016 versus $4,523,965,417 in 2015); • Average sale price is up 2.30 percent ($179,713 in 2016 versus $175,677 in 2015); and • New listings are up 0.07 percent (37,749 units in 2016 versus 37,724 in 2015).

"The opportunities for real estate agents and consumers to achieve their goals far exceed the strength of market challenges such as higher competition for fewer properties," said Croushore. Statistical data in this report is supplied by West Penn Multi-List, Inc., the definitive source for real estate information for its 17-county service area – Allegheny, Armstrong, Beaver, Butler, Cambria, Clarion, Crawford, Fayette, Greene, Indiana, Jefferson, Lawrence, Mercer, Somerset, Venango, Washington and Westmoreland counties. For more information, visit http://www. westpennmls.com/. CONTACT: Maegen Laney Noble mnoble@laneycommunications.com 904-451-2644 Kristen Laney O'Toole klaney@laneycommunications.com 412-327-2907 SOURCE West Penn Multi-List, Inc. http://www.westpennmls.com

Zillow Gives Multifamily Marketers "Boost" With Precision Targeting

illow has announced a new program for multifamily marketers to stand out among other rental listings with a unique feature on Zillow, Trulia and HotPads, according to a release. The expansion of the popular "Boost" advertising program identifies apartment shoppers on Zillow, Trulia and HotPads and targets them with highly relevant advertising on Facebook, according to the release. "We are incredibly excited to introduce this technology to our growing audience of multifamily partners," Greg Schwartz, Zillow Group chief business officer, said in the release. "We have already seen fantastic results from these ads on Facebook. Thanks to Precision Targeting, we know who is ready to sign a lease, and we help draw them back to our partners' properties via a channel they are already using. It's a simple way to expand the reach of advertising with very little effort," Schwartz said.

media platforms, allowing multifamily marketers to target their advertising through a simple, easy platform. This technology identifies prospective renters on Zillow, Trulia and HotPads and connects with them again on Facebook. Property managers can feature a special, new lease-up or an entire property and send the traffic directly to the property's website, according to the release, on both mobile and desktop. "I want qualified traffic and I want it now: I mean yesterday," Crystal Tolen, regional vice president of Case & Associates, said in the release. After I decided to try Boost, the onsite staff called me immediately saying, 'I don't know what we did, but…' I saw the instant results. Boost helped stabilize that community," she said.

Property managers can feature multifamily specials Boost with Precision Targeting combines the power of the most visited real estate and rental network with one of the most widely used social

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Rental Housing Journal Metro · February 2017

Rental Housing Journal Metro

Are Urban Areas Running Out Of Millennial Renters? By John Triplett, Desert Path Marketing Group

s apartment rents are peaking and even starting to moderate or decline in some urban areas from Seattle to Denver, and New York to Los Angeles, some experts are asking whether we may have reached “Peak Millennial” status and the number of Millennial renters will begin to decline. These experts say the urban core renters may have reached the saturation point, and in coming years will stop growing and begin a decline. Their argument is that as Millennials age and start families, they will want to move to the suburbs for more space for housing and better schools than in the urban core.

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Rental Housing Journal Metro · February 2017

Dr. Dowell Myers, a demographer and urban planner at the University of Southern California, has written a paper called, “Peak Millennials: Three Reinforcing Cycles That Amplify the Rise and Fall of Urban Concentration by Millennials.” Myers argues that the peak year of Millennial presence in inner city districts was 2015, and their declining impacts will become apparent before 2020. “Millennials were doubled up at entry levels of their housing life cycle, blocked by older peers who were unable to turn over their apartments for better homes,” Myers writes. “With renewal of new construction and home buying, stronger vacancy chains will again stimulate outflow. “The combined effect of the three reversed cycles will reduce central concentrations of young adults. Preferences may persist for urban walkability but, freed of their former constraints, preferences will now be expressed through choice from a broader range of locales. Cities and suburbs can compete for Millennials passing age 30 with walkable districts, transit, and better schools and housing,” he says.

Portland not peak Millennial However in Portland, Joe Cortright, president and principal economist of Impresa, a consulting firm specializing in regional economic analysis, innovation and industry clusters, argues that the answer is, “No,” that we have not reached peak Millennial. “While it’s fashionable to describe the trend toward city living as something caused by the unique preferences of Millennials, the shift toward city living both predates the maturation of the Millennial generation—and promises to continue as their places among the young adult age group are taken by the post-Millennials (or whatever name is attached to the succeeding generation),” Cortright writes. The relative preference for urban living for 25 to 34 year-olds has been increasing over the past two decades. The New York Times explores this topic in a recent article here - https:// www.nytimes.com/2017/01/23/upshot/peakmillennial-cities-cant-assume-a-continuedboost-from-the-young.html?_r=0 continued on page 18

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Rental Housing Journal Metro

Pending Home Sales Bounce Back

ending home sales picked up in December as solid increases in the South and West offset weakening activity in the Northeast and Midwest, according to the National Association of Realtors®. The Pending Home Sales Index,* a forward-looking indicator based on contract signings, increased 1.6 percent to 109.0 in December from 107.3 in November. With last month's uptick in activity, the index is now 0.3 percent above last December (108.7). Lawrence Yun, NAR chief economist, says contract activity was mixed throughout the country in December but ultimately ended on a high note to close out 2016. "Pending sales rebounded last month as enough buyers fended off rising mortgage rates and alarmingly low inventory levels1 to sign a contract," he said. "The main storyline in the early months of 2017 will be if supply can meaningfully increase to keep price growth at a moderate enough level for households to absorb higher borrowing costs. Sales will struggle to build on last year's strong pace if inventory conditions don't improve." According to Yun, a large portion of overall supply right now is at the upper end of the market. This is evident by looking at December data on the yearover-year change in single-family sales by price range. Last month, sales were up around 10 percent compared to December 2015 for homes sold at or above

$250,000, while homes sold between $100,000 and $250,000 only increased 2.3 percent. Meanwhile, sales of homes under $100,000 were down 11.6 percent compared to a year ago. "The dismal number of listings in the affordable price range is squeezing prospective first-time buyers the most," said Yun. "As a result, young households are missing out on the wealth gains most homeowners have accrued from the 41 percent cumulative rise in existing home prices since 2011." Existing-home sales are forecast to be around 5.54 million this year, an increase of 1.7 percent from 2016, which was the best year of sales since 2006. The national median existing-home price in 2017 is

expected to increase around 4 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.2 percent. Yun expects housing starts – which for another year undershot overall demand – to jump to around 1.26 million units, an increase of 7.9 percent from 20w "Especially if construction-related regulations are relaxed, all eyes will be on the homebuilding industry this year to see if they can finally start making up lost ground on the severe housing shortages impacting much of the country," added Yun. The PHSI in the Northeast declined 1.6 percent to 96.4 in December, and is now 1.2 percent below a year ago. In the

Midwest the index decreased 0.8 percent to 102.7 in December, and is now 3.4 percent lower than December 2015. Pending home sales in the South rose 2.4 percent to an index of 121.3 in December and are now 0.5 percent above last December. The index in the West jumped 5.0 percent in December to 106.1, and is now 5.0 percent higher than a year ago. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries. continued on page 19

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Rental Housing Journal Metro · February 2017

Rental Housing Journal Metro

Pockets of Affordable Housing Exist Within the Most Expensive Markets Even in metros where homebuyers have the biggest mortgage burdens, some cities within those metros provide relatively affordable housing options.

he San Jose metro has been one of the hottest housing markets in the country. Homebuyers in Palo Alto can expect to spend 75 percent of their income on a house paymenti. But just 15 miles away, buyers in Milpitas, Calif. need only spend 35 percent. This example of disparity in the Silicon Valley demonstrates how hot housing markets are fueled by cities where high demand for jobs and amenities drive housing values to far outpace incomes. The phenomenon is one reason there is more inequality in very expensive markets. Zillow's latest research on mortgage burdens at the city level illustrates how hot spots within popular housing markets have caused runaway housing costs that place significant burdens on the people who live and work there, even as the

cities next door remain more affordable. However, choosing a more affordable city likely requires trade-offs, such as fewer amenities or longer commutes. "The Bay Area and other expensive West Coast markets get a lot of attention for being unaffordable, but even they have some areas where the share of income spent on housing is relatively low," said Zillow Chief Economist Dr. Svenja Gudell. "Of course, buyers have to be willing to make some trade-offs to live in more affordable cities within the metro. Some cities in the most in-demand housing markets across the country have such a high housing burden that they are simply not feasible for buyers with lower incomes. If income growth doesn't keep pace with home value growth, especially as mortgage rates rise, inequality will persist."

In San Francisco, the flourishing tech industry and physical boundaries of the city have created a housing market with a high housing burden – buyers in San Francisco need to spend nearly 54 percent of their income on mortgage payments. Across the bay, homebuyers in Oakland fare a little better. Mortgage payments there require 42 percent of the typical household income. Within the Seattle metro, Bellevue buyers would have to spend the greatest share of income on housing – 29.6 percent. Less than 10 miles away, Kirkland buyers only need to set aside 22 percent of their income to pay their mortgage. This phenomenon doesn't play out in less heated housing markets. Buyers in almost any part of the Kansas City metro, for example, can expect to spend between

Metropolitan Area

Metro-level Mortgage Burdenii, 2015

City with the Smallest Mortgage Burden, 2015

City with the Greatest Mortgage Burden, 2015

United States

14.6%

Detroit, MI – 5.9%

Palo Alto, CA – 75.4%

New York/Northern New Jersey

24.9%

Brentwood, NY -- 14.7%

Passaic, NJ -- 45.7%

Los Angeles-Long Beach-Anaheim, CA

39.7%

Lancaster, CA -- 18.5%

Santa Monica, CA -- 66.1%

Chicago, IL

14.0%

Gary, IN -- 6.8%

Evanston, IL -- 20.1%

Dallas-Fort Worth, TX

12.6%

Grand Prairie, TX -- 10.6%

Lewisville, TX -- 16.1%

Philadelphia, PA

14.2%

Camden, NJ -- 11.8%

Wilmington, DE -- 13.7%

Houston, TX

11.9%

Pasadena, TX -- 9.6%

Baytown, TX -- 9.9%

Washington, DC

17.8%

Waldorf, MD -- 13.1%

Washington, DC -- 29.9%

Miami-Fort Lauderdale, FL

19.5%

Lauderhill, FL -- 10.3%

Miami, FL -- 42.8%

Atlanta, GA

11.8%

Johns Creek, GA -- 14.0%

Sandy Springs, GA -- 26.4%

Boston, MA

21.7%

Lowell, MA -- 21.3%

Boston, MA -- 35.9%

San Francisco, CA

39.0%

Antioch, CA -- 21.9%

Berkeley, CA -- 58.4%

Detroit, MI

10.3%

Detroit, MI -- 5.9%

Rochester Hills, MI -- 15.3%

Riverside, CA

23.6%

Victorville, CA -- 18.1%

Upland, CA -- 35.2%

Phoenix, AZ

16.8%

San Tan Valley, AZ -- 12.0%

Scottsdale, AZ -- 23.6%

Seattle, WA

21.4%

Marysville, WA -- 16.2%

Bellevue, WA -- 29.6%

Minneapolis-St Paul, MN

13.8%

Maple Grove, MN -- 12.4%

Minneapolis, MN -- 17.1%

San Diego, CA

33.0%

Chula Vista, CA -- 29.5%

El Cajon, CA -- 39.4%

St. Louis, MO

11.0%

Saint Louis, MO -- 11.6%

Saint Charles, MO -- 12.7%

Tampa, FL

14.3%

Riverview, FL -- 11.3%

Clearwater, FL -- 16.0%

Baltimore, MD

15.5%

Baltimore, MD -- 11.8%

Ellicott City, MD -- 20.4%

Denver, CO

19.6%

Highlands Ranch, CO -- 16.3%

Denver, CO -- 25.0%

Pittsburgh, PA

10.6%

Pittsburgh, PA -- 11.1%

n/aiii

Portland, OR

20.8%

Hillsboro, OR -- 17.1%

Portland, OR -- 24.1%

Charlotte, NC

12.7%

Gastonia, NC -- 11.3%

Rock Hill, SC -- 14.9%

Sacramento, CA

23.3%

Elk Grove, CA -- 18.3%

Davis, CA -- 44.4%

San Antonio, TX

11.8%

New Braunfels, TX -- 14.3%

n/a

Orlando, FL

15.5%

Pine Hills, FL -- 10.5%

Kissimmee, FL -- 14.9%

Cincinnati, OH

11.1%

Cincinnati, OH -- 14.2%

n/a

Cleveland, OH

11.1%

Parma, OH -- 8.3%

Lorain, OH -- 8.3%

Kansas City, MO

10.8%

Kansas City, KS -- 7.3%

Overland Park, KS -- 13.2%

Las Vegas, NV

16.8%

Enterprise, NV -- 14.4%

Paradise, NV -- 18.9%

Columbus, OH

11.9%

Columbus, OH -- 10.7%

n/a

Indianapolis, IN

11.4%

Fishers, IN -- 8.5%

Carmel, IN -- 12.1%

San Jose, CA

39.4%

Milpitas, CA -- 34.8%

Palo Alto, CA -- 75.4%

Austin, TX

15.9%

Round Rock, TX -- 13.0%

Austin, TX -- 20.3%

Rental Housing Journal Metro · February 2017

7.3 percent and 13.2 percent of their income on a mortgage. Similarly, buyers in the Las Vegas metro can expect to spend between 14.4 and 18.9 percent of their income on mortgage payments, no matter which city they are in. Buyers moving to the Detroit suburbs will have similar mortgage burdens, with buyers having to spend between 10.2 and 15.3 percent of their income on mortgage payments. The city of Detroit itself has the smallest mortgage burden in the country – just 5.9 percent of the typical income needed to pay the monthly mortgage.

Rental Housing Journal Metro

Prepared Property Managers Can Handle What Comes Down the Pipeline By Marc Courtenay in Articles, www.propertymanager.com

n case you haven’t read the following quote in awhile, “an ounce of prevention is worth a pound of cure.” Benjamin Franklin gets the credit for this piece of powerful wisdom. Whether it’s taking on a new partner, new employees, more risk, less risk or using intuition to keep up with the latest trends in our industry, we can’t be too prepared.

Tip #1 is to be “written ready.” What that means is to write yourself a list of possibilities for the immediate future. It’s not like predicting the future. It’s about anticipating what you’ll need and what may change in your area. Start a written list today of what you’re hearing, seeing, feeling and knowing regarding the rental housing market, the property management business. Write it on the list even if it’s unlikely or absurd. Why would you want to be “written ready”? It’s because you want your unconscious to be able to expect the unexpected, or at least be processing all the possibilities. Psychologists and neurologists know that the operating system of our human awareness is mostly subliminal and below the surface of our waking thoughts. What they’ve also recognized is that we can “program” the

subconscious to create possible scenarios and relevant responses. Yes, it’s amazing!

Tip #2 is to know the trends that are already in full momentum. You can do this by reading articles like this one and subscribing to trade journals and the publications of our industry’s associations. If you haven’t joined your local and national associations, don’t hesitate to do so soon. A good example is The National Association of Residential Property Managers (NARPM®), which I recently wrote about. One trend that’s getting lots of publicity now is an increase in inner-city evictions. Researchers found that one of the major

reasons is that institutional investors now own more rentals than ever. These large, corporate investors evicted at higher rates even after accounting for the demographics of the community where the rental units were located. They know the eviction laws and have investors or shareholders to answer to. The National Rental Home Council reports that institutional investors have purchased large blocks of homes and used them for rentals. This is one of the reasons that in many areas of the country there is a limited supply of lowerpriced houses for sale. The corporate or syndicate investors also purchased rental units from other landlords and inherited residents who sometimes can’t afford to

pay rent. Anecdotally, they also tend to evict more quickly. Government researchers don’t say why many institutional investors evict at higher rates. Some say it’s because their size enables them to negotiate less expensive legal rates and replace renters more quickly than smaller, local property managers. Be aware of that possibility going forward. Local landlords and managers tend to treat responsible residents more patiently. They’re more likely to work with someone who has lost a job or can’t pay for the short term. Emphasize this in your marketing. Prepare for the advantages and disadvantages of what may impact your corner of the property management world. Remember “Brexit” and the 2016 presidential elections as poignant examples of unexpected outcomes. Every time you hear a rumor, opinion or statistic that’s relevant to your work, add it to your list. Have a fist full of preventive “ounces” so you won’t need a “pound of cure.”

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Rental Housing Journal Metro · February 2017

Rental Housing Journal Metro

Examining the National Boom in Market Demand for Luxury Apartments

he philosophy of "The American Dream" has seen considerable alterations as it evolved over decades. Today, Americans view it as a lifestyle that offers less maintenance costs, more social mobility; community engagement with less seclusion - but more exclusivity; high-style amenities with a smaller, greener footprint; and urban convenience with a picturesque view. Marcus Hiles, Chairman and CEO of Western Rim Property Services, responds to the current national boom in demand for luxury apartments by creating affordable, environmentally responsible, and socially friendly high-end apartments. Dallas is experiencing what Marcus Hiles calls a new norm in urban residential living. Millennials and retiring baby boomers increasingly want luxury without the labor. But, the reality is there are other forces at work here too. The high demand is also driven by large segments of the population that cannot qualify for a high down payment mortgage, are not looking to buy, or are downsizing - all at the same time. Hiles believes affordable upscale rental communities will continue to grow in popularity as affluent Americans become city dwellers - some by choice, others out of necessity. The popularity of renting over buying is significant, considering people are still choosing to rent even with historically

low interest rates. This trend underscores a shift in priorities toward increased mobility and less commitment without sacrificing amenities and lifestyle. Properties developed by Hiles' Western Rim are located near outstanding educational opportunities, shopping centers, and feature golf courses, swimming pools, and clubhouses with everything from European Grand Spas, hair and nail salons, an on-site doctor's office, an executive business center, and a Starbucks café - designed to satisfy the rental consumers.

Marcus Hiles is committed to creating high-quality residential rental communities. As the Founder, Chairman, and CEO of Western Rim Properties and Newport Classic Homes, Hiles is responsible for managing more than 15,000 luxury properties that include world-class amenities and a focus on a healthy lifestyle with ecological public spaces, top school districts, and recreation locations.

Marcus Hiles - Chairman & CEO of Western Rim Property Services: http://www.MarcusHiles-News.com MarcusHilestx (Marcus Hiles) - DeviantArt: http://marcushilestx.deviantart.com Marcus Hiles (@marcus_hiles) - Twitter: https://twitter.com/marcus_hiles Marcus Hiles - New Luxury Apartments in Frisco, TX - YouTube: https://www.youtube. com/watch?v=dmsJNbfOh-g SOURCE Marcus Hiles http://www.MarcusHiles-News.com

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Rental Housing Journal Metro

DEAR MAINTENANCE MEN: Caulk, Plumbing, Doors and Curtains

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men: I’m attempting to remove old caulking from around a bathtub. Are there any tricks or chemicals to help with this job?

line Hydro Jetted and then have the line inspected with a camera. This will determine exactly where and why you have a constant problem with your drain line.

Dear Steve: Most bathtub caulking is either silicon or latex based. If originally installed properly, it should stick pretty well. Most household chemicals will not affect the caulking or help in its removal. The best method is to use a razor knife to cut along either side of the bead. Then pull the bead out by hand as you cut. The balance of the material can be removed with a flat razor, either along the old bead or perpendicular to the bead. After all the material is removed, use a damp rag to remove any loose bits. Before installing the new caulk, be sure the area is clean and dry. You can use a wet/dry vacuum to suck up any water left over from your cleaning.

Dear Maintenance Men: I’m starting a rehab in my unit’s bathroom and thinking of replacing the shower curtain as part of the work. A shower curtain is a fast and easy job. What are the pros and cons of a shower door versus a shower curtain in my rental unit’s bathtub? How do you install a shower door? I don’t want to poke holes in the bathtub.

Steve

Dear Maintenance Men: I have two units that have back to back kitchen plumbing that drain into a single pipe. They are constantly blocking up. We snake them on a regular basis, but to no avail. How can I solve this problem?

Julia

Bryan

Dear Julia: Unfortunately with two units draining into one drainpipe, you double the drain’s workload. This means the drain line has twice the grease, twice the soap and twice the food etc. In this case we will assume that your waste plumbing system consists of galvanized & cast iron piping. These two types of metal drainpipe’s inner lining tends to corrode and become rough and flake. This allows solid waste to form on the rough surface. A solution to the problem is to instruct your residents on

the proper use of the garbage disposal. The water must be running before you turn on the disposer and continue running after the disposer is turned off. This will insure that the waste has been washed all the way down the pipe. The garbage disposer must run a sufficient amount of time to insure the proper breakup of the waste. The residents should also be instructed to feed the disposer slower, and not to cram food down the drain. For persistent drain problems, we highly recommend getting the drain

Dear Bryan: While appearing as a guest on "The Tonight Show" one evening many, many years ago, famed hotelier Conrad Hilton was asked by his host (Johnny Carson) whether he had a "message" for the American people. With great gravity, Hilton paused momentarily before turning to the camera. "Please," he pleaded, "put the shower curtain inside the tub!" Keeping with Mr. Hilton’s thoughts, we are big fans of shower doors as opposed continued on page 19

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Rental Housing Journal Metro · February 2017

Rental Housing Journal Metro

Home Buyers in Expensive Markets ...continued from page 1

U.S. Home Sales Finish Strong ...continued from page 7

"There are many factors that go into the decision on whether to rent or buy," said Zillow Chief Economist Dr. Svenja Gudell. "Zillow's Breakeven Horizon can help people better understand the longerterm financial calculation. It's also helpful for buyers to understand that as home value appreciation moderates, it will take them longer to break even than in past years. San Jose buyers, for example, will have to stay in a home for at least five years to offset the high upfront costs necessary to make that purchase."

to November at 4.0 and December 2015 at 4.9. A 6.0-month supply indicates a market balanced equally between buyers and sellers. In December, 47 of the 53 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller's market. One reported a balanced market at 6.0, while the remaining five saw a months supply above 6.0, which is typically considered a buyer's market. The markets with the lowest Months Supply of Inventory continued to be in the West, with San Francisco, CA at 1.2, Seattle, WA at 1.5 and Denver, CO at 1.6.

Metropolitan Area United States New York/Northern New Jersey Los Angeles-Long BeachAnaheim, CA Chicago, IL Dallas-Fort Worth, TX Philadelphia, PA Houston, TX Washington, DC Miami-Fort Lauderdale, FL Atlanta, GA Boston, MA San Francisco, CA Detroit, MI Riverside, CA Phoenix, AZ Seattle, WA Minneapolis-St Paul, MN San Diego, CA St. Louis, MO Tampa, FL Baltimore, MD Denver, CO Pittsburgh, PA Portland, OR Charlotte, NC Sacramento, CA San Antonio, TX Orlando, FL Cincinnati, OH Cleveland, OH Kansas City, MO Las Vegas, NV Columbus, OH Indianapolis, IN San Jose, CA Austin, TX

Among the biggest U.S. metros, it takes the longest to break even on a home purchase in large California markets. In San Jose, San Francisco, Los Angeles and San Diego, the Breakeven Horizon is at least four years. Buyers will break even fastest in the South and Midwest. In Indianapolis, Orlando, Detroit, Atlanta, and Tampa, it takes less than 1.5 years to break even on a home.

Breakeven Horizon, 2016 Q4 1 year, 11 months 2 years, 6 months

Breakeven Horizon, 2015 Q4 1 year, 10 months 3 years, 2 months

4 years, 2 months

4 years, 1 month

2 years 1 year, 6 months 2 years, 5 months 1 year, 11 months 3 years, 6 months 2 years, 3 months 1 year, 5 months 2 years, 8 months 4 years, 6 months 1 year, 5 months 2 years, 2 months 2 years, 5 months 2 years, 5 months 2 years, 3 months 4 years, 1 month 1 year, 10 months 1 year, 5 months 2 years, 5 months 2 years, 3 months 2 years 2 years, 1 month 1 year, 8 months 2 years, 5 months 1 year, 9 months 1 year, 5 months 1 year, 8 months 1 year, 10 months 1 year, 7 months 1 year, 10 months 1 year, 9 months 1 year, 4 months 5 years, 2 months 2 years, 5 months

2 years, 1 month 1 year, 3 months 2 years, 10 months 1 year, 5 months 4 years, 5 months 2 years, 6 months 1 year, 5 months 3 years, 1 month 2 years, 11 months 1 year, 4 months 1 year, 10 months 2 years, 4 months 1 year, 11 months 2 years, 3 months 3 years, 5 months 1 year, 9 months 1 year, 11 months 3 years 1 year, 9 months 1 year, 9 months 2 years, 1 month 1 year, 9 months 2 years, 1 month 1 year, 6 months 1 year, 11 months 1 year, 7 months 1 year, 6 months 1 year, 6 months 1 year, 8 months 1 year, 8 months 1 year, 4 months 3 years, 3 months 1 year, 11 months

About the RE/MAX Network: RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Over 110,000 agents provide RE/MAX a global reach of more than 100 countries and territories. Nobody sells more real estate than RE/ MAX, when measured by residential transaction sides. RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE: RMAX). With a passion for the communities in which its agents live and work, RE/ MAX is proud to have raised more than $150 million for Children's Miracle Network Hospitals® and other charities. For more information about RE/ MAX, to search home listings or find an agent in your community, please visit www.remax.com. For the latest news about RE/MAX, please visit www. remax.com/newsroom.

port was distributed in August 2008. The Report is based on MLS data in approximately 53 metropolitan areas, includes all residential property types, and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state. Metro area definitions include the specific counties established by the U.S. Government's Office of Management and Budget, with some exceptions. Definitions Transactions are the total number of closed residential transactions during the given month. Months Supply of Inventory is the total number of residential properties listed for sale at the end of the month (current inventory) divided by the number of sales contracts signed (pended) during the month. Where "pended" data is unavailable, this calculation is made using closed transactions. Days on Market is the number of days that pass from the time a property is listed until the property goes under contract for all residential properties sold during the month. Median Sales Price is the median of the median sales prices in each of the metro areas included in the survey. MLS data is provided by contracted data aggregators, RE/MAX brokerages and regional offices. While MLS data is believed to be accurate, it cannot be guaranteed. MLS data is constantly being updated, making any analysis a snapshot at a particular time. Every month the RE/MAX National Housing Report re-calculates the previous period's data to ensure accuracy over time. All raw data remains the intellectual property of each local MLS organization. SOURCE RE/MAX, LLC http://www.remax.com

Description The RE/MAX National Housing Report is distributed each month on or about the 15th. The first Re-

The breakeven horizon is the number of years after which buying is more financially advantageous than renting (at the precise breakeven horizon one can be indifferent between buying and renting). We compute the breakeven horizon for each household by comparing the costs of owning a home versus renting a home at the end of each year for 30 years (assuming the house is purchased using a 30 year fixed mortgage). Our buy versus rent analysis incorporated all possible costs incurred when purchasing a home as well as those incurred when renting a home to make the comparison between these costs as realistic as possible. The full methodology can be found here: http://www.zillow.com/research/ rent-vs-buy-breakeven-horizon-analysis-methodology-updated-3549/ Zillow –http://www.zillow.com i

Text REALESTATE-ROI to 44222 to receive a digital copy of this year's

Real Estate Opportunities in Investing (ROI) Finding Investing Success in Today's Housing Market Rental Housing Journal Metro · February 2017

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Rental Housing Journal Metro

Portland Proposes Landlords Pay ...continued from page 1

Landlords say city attempting to engage in rent control John DiLorenzo, a landlord lobbyist and attorney, told Willamette Week the ordinance would be illegal given the state's prohibition on rent control, noting there is a "strong likelihood" he will sue the city if the emergency ordinance passes. "This proposed ordinance requires landlords to pay penalties (styled as relocation expenses) in the approximate amount of 3 months rent for the typical rental unit if the landlord terminates the tenancy or issues a rent increase in excess of 10% per year," he writes in an email. "Requiring the payment of relocation expenses for rent increases is no different than imposing penalties for rent increases. Either way, the city is attempting to engage in rent control. Rent control is prohibited by state statute. We believe that this ordinance would likely not survive a court challenge. It is also unclear as to whether the proposal is intended to impact leases which terminate on their own accord."

Evicted tenants moving costs may be temporary The relocation requirement would apply only during Portland's housing emergency, set to last through October 2017. The City Council declared the emergency in October 2015. Wheeler also submitted a resolution to waive development fees for certain affordable housing developments during the city's housing emergency. "We are trying to create a broad set of tools that will protect the rights of renters and seek to reduce the time and cost of bringing workforce and lower-income housing online," Wheeler told the newspaper. Resources: Proposed relocation ordinance https://www.portlandoregon.gov/eudaly/article/625338 Relocation ordinance fact sheet https://www.portlandoregon.gov/eudaly/article/625336 Relocation assistance ordinance https://www.portlandoregon.gov/eudaly/article/625340

Jobs for Property Managers Pay Higher ...continued from page 1 Property management jobs ranked overall No. 46 in the jobs in the $50,000 range, according to the survey.

Property managers and education In terms of education for property management positions, many employers

“Most property, real estate, and community association managers work out of an office. However, many onsite managers spend a large part of their workday doing tasks away from the office, such as showing apartments, inspecting the grounds, or meeting with owners. About two in five were self-employed in 2014,” according to the BLS. The BLS annual median wage is $36,200 per year. So jobs that pay more than $50,000 a year are quite a bit higher than average. “We put these high paying career lists together so you can search jobs grouped by income bracket. The $50,000 a year jobs list is full of interesting careers from nearly every industry. Further good news is that there are 83 jobs on this list. So there are a lot of jobs in the $50,000 a year range and even more if you want to look further up the income bracket,” according to CareerToolkit.com. Jobs in the construction industry paying over $50,000 a year include structural iron workers, plumbers, and millwrights. Each of these jobs pays significantly more than the annual median wage and typically only requires a High school diploma or equivalent. Many technician jobs pay in the $50,000 a year range also. For instance, wind turbine service technicians, industrial engineering technicians, mechanical engineering technicians, and electromechanical technicians all earn over $50,000 a year. In addition, each of these jobs typically requires an Associate’s degree or postsecondary nondegree award or certificate. So that means you can get started without needing years of education.

prefer to hire college graduates, particularly for offsite positions dealing with a property’s finances or contract management. Employers also prefer to hire college graduates to manage residential and commercial properties, according to the BLS website. A bachelor’s or master’s degree in business administration, accounting, finance, real estate, or public administration is preferred for commercial management positions. Managers of commercial properties and those dealing with a property’s finances and contract management increasingly are finding that they need a bachelor’s or master’s degree in business administration, accounting, finance, or real estate management, especially if they do not have much practical experience. Experience in real estate sales is a good background for onsite managers because real estate salespeople also show commercial properties to prospective tenants or buyers, according to the BLS. Take a look at the full list of $50K a year jobs here - http://www.careertoolkit.com/ high-salary-jobs-50k-100k-professions.html Resources: Guide to 285 high-paying jobs http://www. careertoolkit.com/high-salary-jobs-50k-100kprofessions.html Careertoolkit.com start a career you will love http://www.careertoolkit.com/high-salary-jobs50k-100k-professions.html Bureau of Labor statistics https://www.bls.gov/ Occupational handbook for property managers, real estate and association managers https:// www.bls.gov/ooh/management/property-real-estate-and-community-association-managers.htm#tab-1

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U.S. News & World Report Unveils the 2017 Best Places to Live Austin, Texas, bumps Denver, Colorado, from the No. 1 Spot

.S. News & World Report, the global authority in rankings and consumer advice, today unveiled the 2017 Best Places to Live in the United States. The new list ranks the country's 100 largest metropolitan areas based on affordability, job prospects and quality of life. Austin, Texas, took the No. 1 spot, bumping Denver, Colorado, to No. 2. San Jose, California, climbed from No. 10 to No. 3, while Washington, D.C., moved up four spots to No. 4. Fayetteville, Arkansas, rounds out the top five. "When considering a move people are concerned about finding a job in their field, earning enough to afford a home, sending their kids to good schools and feeling like a part of their community," said Kim Castro, executive editor at U.S. News. "The Best Places to Live ranking takes all of that into account – the metro areas that do well are the ones with strong job markets and high quality of life." Several metro areas saw significant gains year over year. Boston, Massachusetts, moved to No. 8 from No. 30 thanks to a noteworthy drop in the unemployment rate. Salt Lake City's improved cost of living propelled it from No. 27 to No. 10. Hartford, Connecticut, Syracuse, New York, and Milwaukee, Wisconsin, all made impressive strides, climbing more

5. Fayetteville, AR 6. Seattle, WA 7. Raleigh & Durham, NC 8. Boston, MA 9. Des Moines, IA 10. Salt Lake City, UT See the full city rankings, from 1 to 100, by visiting http://realestate.usnews.com/ places/rankings/best-places-to-live. For more information on Best Places to Live explore Facebook and Twitter using #BestPlaces2017. About U.S. News & World Report

than 20 spots into the top 50. Like Salt Lake City, all three metro areas earned higher affordability scores in 2017. The 2017 Best Places to Live were determined in part by a public survey of thousands of individuals across the U.S. to find out what qualities they consider important in a home town. The methodology also factors in data from the United States Census Bureau, the Federal Bureau of Investigation and the Bureau of Labor Statistics, as well as U.S. News rankings of the Best High Schools and Best Hospitals. Best Places to Live is part of U.S. News' expanding Real Estate channel, which

provides rankings, tools and advice to help individuals navigate the housing market, from getting a mortgage and working with an agent to buying and selling a home. The new U.S. News Real Estate Agent Finder matches individuals with top-performing agents in their markets.

2017 U.S. News Best Places to Live Rankings – Top 10 1. Austin, TX 2. Denver, CO 3. San Jose, CA 4. Washington, DC

U.S. News & World Report is a digital news and information company that empowers people to make better, more informed decisions about important issues affecting their lives. Focusing on Education, Health, Personal Finance, Travel, Cars and News & Opinion, www.usnews.com provides consumer advice, rankings, news and analysis to serve people making complex decisions throughout all stages of life. More than 30 million people visit www.usnews.com each month for research and guidance. Founded in 1933, U.S. News is headquartered in Washington, D.C. U.S. News & World Report http://www.usnews.com

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Rental Housing Journal Metro · February 2017

Rental Housing Journal Metro

Are Urban Areas Running Out ...continued from page 9 fall of the number of births two decades ago that formed the Millennial generation, those born between 1980 and 1999. With the largest Millennial birth cohort passing age 25 in 2015, and smaller cohorts to follow, there may be grounds to declare we have reached the day of peak urban Millennials.

Declining Millennial renters presence in cities “After a decade of rapid increase, we now can expect rapid slowing and then deconcentration,” Myers writes. “The explanation for why the urban episode of the Millennials will not persist is given by a tracing out of three cycles that worked together first to amplify the presence of Millennials in cities, and now are all reversing their effects and interacting together to reduce Millennial presence. “The impacts of Millennials will not disappear but will slacken as they shift toward their new life-cycle stage of early middle age. The young people of the next decade are less likely to fill the gap left behind by the Millennials,” Myers writes. He sets out three reasons Millennial renters will decline in urban centers.

• The second is the housing life cycle. The Millennial renters are currently poised at the threshold of housing independence, many residing with their parents in the suburbs and others in central neighborhoods of urban areas. In the next 5 years, when the larger cohorts of Millennials have moved into their 30s, and given continued recovery in the housing market, their residence will likely progress to a different stage, and likely in different neighborhoods.

• The first is often overlooked but the most fundamental, namely the rise and

• The impact of the great recession. This severe economic volatility slowed the

rate of job growth at the crucial time when Millennials sought entry-level positions. Now that economic growth has resumed and new construction of housing is on the rise, we might expect that previously stalled progress through the life cycle will at least partially resume. This economic recovery will also accelerate renewed progress through the housing life cycle as well. His conclusion on Millennial renters: “The period preceding and following the Great Recession may become known as a great natural experiment in urban flows. Whereas the demographic pipeline pumped young adults into cities at full volume, the normal turnover and outflow was clogged by older peers who lacked the job and housing opportunities to advance to the next stages of their employment and housing careers.

“Millennial presence was amplified in cities because the drain was plugged, but now we can anticipate an amplified outflow of those who had been pent up,” Myers writes. The New York Times article says, “If there is an economic lesson that the Great Recession has stamped upon many Millennials, it’s that there is often a big difference between what you want and what you can afford. So while some 22-year-old Millennials might have made a declaration that they would rather die than live in a suburb, their 35-year-old selves might feel differently, especially when they discover suburban houses are often cheaper and suburban schools are often better.” Resources: Cities cannot assume a continued boost from the young https://www.nytimes.com/2017/01/23/upshot/ peak-millennial-cities-cant-assume-a-continued-boost-from-the-young.html Peak Millennials: Three Reinforcing Cycles That Amplify the Rise and Fall of Urban Concentration by Millennials http://popdynamics.usc.edu/pdf/2016_Myers_ Peak-Millennials.pdf Not peak Millennial: The coming wave http://cityobservatory.org/not-peak-millennialthe-coming-wave/

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Pending Home Sales ...continued from page 10

Dear Maintenance Men ...continued from page 14 to shower curtains, because residents also leave the shower curtain outside the tub. Shower door installations are a great doit-yourself project, because it is easy to do and the results looks great.

1Total housing inventory at the end of December was at 1.65 million existing homes available for sale, which is the lowest level since NAR began tracking the supply of all housing types in 1999. *The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. The index is based on a large national sample, typically representing about 20 percent of transactions for existinghome sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-

home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population. NOTE: NAR's metropolitan area home price report for the fourth quarter of 2016 will be released February 9, Existing-Home Sales for January will be reported February 22, the first quarter Commercial Real Estate Report/Forecast will be released on February 23, and the next Pending Home Sales Index will be February 27; all release times are 10:00 a.m. ET. Information about NAR is available at www.nar. realtor. This and other news releases are posted in the "News, Blogs and Videos" tab on the website. Statistical data in this release, as well as other tables and surveys, are posted in the "Research and Statistics" tab. SOURCE National Association of Realtors Related Links â&#x20AC;&#x201C; http://www.realtor.org

After removing the existing shower curtain, clean the tub and walls to remove any accumulated soap scum. Measure the tub ledge wall to wall and subtract 3/16th of an inch (to leave room for the wall channels) and transfer the measurement to the bottom rail track of the shower enclosure. After measuring twice and cutting once, temporally set the bottom track on the tub ledge and tape it in place. Next, set the wall channels in place, use a level to make sure it is plumb with the wall. Mark the mounting holes of the wall channel with your pencil. Do the same thing for the other side. Remove the channels and before drilling, center punch the hole mark to keep the drill bit centered. If drilling through tile, use a ceramic drill bit. Once you have made your holes, insert wall anchors. Now you are ready to set the bottom track. Use

adhesive caulk and if you feel the track may be abused, also use some Liquid Nails adhesive at several spots under the track. Remove any excess caulk and then use duct tape to temporally hold the track in place. Before fitting the side channels, run a bead of adhesive caulk on the backside of the channel. Install the channel, use the supplied screws and bumper to fasten the channel to the wall, repeat on the other side. Wipe away any excess caulk. To install the top rail channel, measure from wall to wall at the top of the wall channels. Subtract 1/16 of an inch and cut the top channel to that length. Again, measure twice. The top channel should fit snug between top of the wall channels. Lastly it is time to hang the doors and adjust the fit. Most doors come with good instructions, read them, as there may be details not included in our explanation. Bio: If you need maintenance work or consultation for your building or project, please feel free to contact us. We are available throughout Southern California. For an appointment please call Buffalo Maintenance, Inc. at 714 956-8371 Jerry L'Ecuyer is a licensed contractor & real estate broker. He is currently on the Board of Directors and Chairman of the Education Committee of the Apartment Association of Orange County. Jerry has been involved with apartments as a professional since 1988. Frank Alvarez is the Operations Director and co-owner of Buffalo Maintenance, Inc. He has been involved with apartment maintenance & construction for over 20 years. He is also a lecturer & educational instructor. Frank can be reached at (714) 956-8371 Frankie@BuffaloMaintenance.com For more info please go to: www.BuffaloMaintenance.com

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Rental Housing Journal Metro Âˇ February 2017

Rental Housing Journal Metro

Rental Housing Journal Metro Âˇ February 2017