New rentals at 15 year low — rent control failed

By Taxpayers Association of Oregon Foundation,

Although Portland needs many new apartments and condominiums to fill needs, an ECONorthwest forecast shows that construction of new multifamily units in the city has dropped to the lowest level in 15 years. The city is expected to receive 500 new multifamily permits this year, the lowest number since the economic crisis in 2009, when the city issued 218 permits of construction of apartment buildings before construction activity recovered. ECONorthwest said investors are reluctant to pay for new construction because of economic uncertainty. Last year, only 28 apartment buildings were under construction, half the number of the previous year.

Because Portland and Oregon passed some of the nation’s most constrictive rent control laws on top of some of nation’s most heavy handed red-tape laws for landlords on top of nearly a half dozen new taxes has resulted in prospective apartment buildlers to bail out on Portland.