September 30, 2009
Page A2
Renters’ Market?
Economy rattles landlords
J ake T homas
T he P ortland O bserver
bv
"Now Leasing" is a phrase
you'll see frequently on signs
along North M ississippi Av­
enue. Throughout the street,
workmen can be seen wearing
hard hats and hauling ladders
in and out of sleek residential
buildings they're putting final
touches on. Things are hum ­
ming along so well, you might
forget that the housing market
collapsed just last year.
Real estate has taken a seri­
o us d ru b b in g from the
economy. A number of devel­
opment projects have stalled
due to lack of credit, including
a high-rise tower downtown,
while the number of foreclo­
sures in the area has soared.
photo by J ake T homas /T he P ortland O bserver
But real estate developers are
Construction
workers
are
putting
the
finishing
touches on the Mississippi Avenue Lofts in
still bringing more new hous­
north
Portland.
Although
the
local
real
estate
market
has taken a drubbing in the past
ing into a market that is already
year,
the
city's
housing
inventory
is
expected
to
expand.
crowded with empty units. The
d y n a m ic s o f the soggy lords. Now many property own­ economy to have a downward slip to 1.2 percent to $815 and
economy is having a significant ers are offering sweeteners to pressure on rents. Landlords effective rents to drop 2.4 per­
will have a harder time filling cent to $746.
im pact on residential rental fill up their rentals.
According the Department of
“Renters have a lot more le­ rentals because the apartment
properties, with landlords now
H
ousing
and
U rban
vacancy
rate
will
rise
after
de­
reporting that it’s changing verage," said Kathryn King, a
D
evelopm
ent’s
m
ost
recent
velopers
increase
inventory
by
their relationships with tenants. landlord who owns residential
quarterly
m
arket
report,
the
1.4
percent,
according
to
the
Tenants generally have less properties in southeast Port­
apartment
vacancy
rate
jumped
report.
As
employers
trim
pay­
to spend on rent, and are dou­ land.
A rep o rt from M arcus & ro lls, th e y ’ll have an even to 5.8 percent in the second
bling up with friends or moving
Millichap
Real Estate Invest­ harder time finding renters. The quarter, up from 5 percent a year
in with family members to save
ment
Services,
anticipates the report expects asking rents to ago. Rents have also stayed flat
costs, according to local land­
Truck Plant Won’t Close
Military contract saves 650 jobs
(AP) -- In a surprise move,
Daimler Trucks North America
says it will keep its Portland truck
plant operating, located at the
form er Freightliner factory on
Swan Island.
The Oregonian says Monday's
announcem ent will likely save
about 650 jobs.
It's been almost a year since
Daimler said the plant would close.
Now Joe Kear of the machinists
union that represents most of the
employees says his union hopes for
another three-year contract.
The company says the decision
resulted from a big military contract.
Managers of the Daimler U.S.
truck operation, based in Portland
and owned by Germany's Daimler
AG, had planned to transfer manu­
facturing of Western Star commer­
cial vehicles from Portland to
Mexico. That move is on hold, as
is a plan to transfer all Freightliner-
branded military-vehicle manufac­
turing from Portland to North
Carolina.
In a statement, Daimler officials
said much depends on negotiat­
ing a new labor contract they hope
will cut costs. They did not say
how many workers will be retained
or how many trucks will be built.
I
at $750 for an apartment.
"Things have changed be­
neath our feet,” said King, who
rem em b ers w hen it w as a
landlord’s market.
Deborah Imse, the executive
director of the Metro Multifam­
ily Housing Association, said
that the higher vacancy rates
have prompted landlords to of­
fer reduced rent, or first month’s
free. They also throw in sweet­
eners like gift cards or free park­
ing to lure in renters, she said.
King said that because of the
economy more landlords are de­
nying people housing because
of financial blemishes on their
records, like late payments. King
has started waiving some of
these red flags on rental applica­
tions just to get her units full.
Imse said the association,
which represents landlords in
the area, is concluding its an­
nual survey, which asks land­
lords if they expect things to
improve. Imse said that there is
a common answer: things will
pretty much stay the same.
However, things aren ’t as
glum all over town, explained
Imse, who said that things are
worse for landlords the further
away from the central city,
where transit and other services
are less available.
“It differs from zip code to zip
code,” she said.
Mark Edlen, the principal of
Gerding Edlen Development
Company, LLC, said that his
properties in downtown Port­
land and the Hawthorne district
are doing well and isn’t seeing
rents slip.
“Portland, compared to a lot
of other places, is in really good
shape,” said Edlen, who added
that as people continue to move
here they will absorb the city’s
excess housing inventory.
But Ari Rapkin, the co-direc­
tor of the Community Alliance
of Tenants, said that he hasn’t
seen renters make any real gains
because of the economy.
Rapkin hasn’t heard anything
about rents going down, but has
encountered a relatively new
problem: tenants getting the
boot from landlords who failed
to pay their mortgage.
H e’s also heard about ten­
ants doubling up with friends
or living in substandard hous­
ing to save money on rents that
have soared during the hous­
ing boom. He said that some
tenants pay up to 5Ö or 60 per­
cent of their income on rent.
“ It’s not a new story that
there is a lot of unaffordable
housing,” said Rapkin.
Sizer Rules on Chasse Death
was on drugs.
In an interview with investigators after the
incident, an officer said he shoved Chasse to
the ground and then fell onto the sidewalk,
past Chasse. But a video of officers talking at
(AP) — Portland Police Chief Rosie Sizer
the jail after they brought Chasse in captures
has ruled that officers acted within policy
the officer telling a sheriffs deputy "we tack­
when they chased and then struggled with a
led him."
mentally ill man who died in police custody
T he video ends w ith po lice and ja il
three years ago.
sh e riffs deputies rem oving Chasse from
Sizer, however, in a Sept.'23 decision, rec­
jail. Chasse, who can be heard moaning, died
ommended a sergeant be suspended for not
while police were driving him to a hospital.
directing an ambulance to take James Chasse
A ccording to autopsy results, Chasse suf­
to a hospital immediately after he was shot by
fered more than a dozen broken ribs, in­
a stun gun.
cluding some that punctured a lung and
Chasse, 42, who had schizophrenia, was James Chasse
caused massive internal bleeding.
arrested following a foot chase in north­
In 2006, a Multnomah County grand jury found no crimi­
west Portland in September 2006. O fficers said they pur-
nal wrongdoing.
sued because they thought he had urinated outside and
Says offices acted
within guidelines
I