March 2016 H OUSING N EWS R EPORT
“ Existing city and county plans — and the amount of vacant or developable land already inside the boundary — provide more than enough room for all the new housing we expect to need over the next 20 years. ” Portland Metro Council, explaining decision not to expand the region’s urban growth boundary in 2015.
Although it may inhibit his ability to create more inventory via infill construction of higher-density housing, the slow-growth philosophy in Portland is ultimately a good problem to have for Grubb because it helps him sell his product fast and at a premium price. “Everything that I put on the market comes in at asking or above. … I can sell a derelict house on the MLS (Multiple Listing Service) for full price,” he said, noting that his model works because he employs a full-time team devoted to finding, vetting and buying distressed properties at a discount — both at the foreclosure auction and by approaching homeowners of “vulnerable
still enough land to build thanks to the new households being smaller and older, and a shift away from single family homes and toward apartments. “Existing city and county plans — and the amount of vacant or developable land already inside the boundary — provide more than enough room for all the new housing we expect to need over the next 20 years,” the council wrote in its conclusion.
Flock to the Inner Core
The 2015 decision is helping accelerate a “flock to the inner core” of Portland, according to Grubb, whose company has been buying, fixing and flipping homes in Portland since 2012.
properties” directly. Employing such a team is a big investment on the property acquisition side that most newbie investors would not be able to afford. “Once you create that machine you have to do those 15 properties a month or things go sideways,” said Grubb, adding that as it becomes tougher to find distressed properties at a discount in Portland he is looking at a handful of other markets
“For the most part they are second-generation hipsters,” he said of those flocking to the inner core and buying his flipped homes. “It’s guys that have two-income families, no kids, and they are OK living in the city with parking issues: creative professionals, computer professionals, a lot of teaching (professionals).”
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SOURCE: Portland Metro Council
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