Washington Multifamily Brief – Week Ending 1/5/26
WMFHA Unveils 2026–2028 Strategic Plan (Washington State)
The Washington Multi-Family Housing Association (WMFHA) has released its strategic plan outlining priorities through 2028. The mission centers on empowering people and influencing policy to advance multifamily housing solutions.
The plan focuses on four key pillars: Advocate, Educate, Celebrate, and Lead.
- Advocate, WMFHA aims to serve as “the voice of multi-family housing providers”—researching solutions to Washington’s housing crisis, expanding advocacy with coalitions and policymakers, and defending the rights of housing providers.
- Educationalinitiatives will elevate the multifamily workforce through professional development and position WMFHA as a go-to resource for industry training.
- Celebrateemphasizes industry connections, encouraging member engagement and community partnerships.
- Leadfocuses on strengthening the association’s capacity—ensuring sustainable leadership, establishing a charitable foundation, and growing membership and revenue streams.
Overall, the plan signals WMFHA’s proactive approach in policy influence, talent development, and industry unity heading into the next three years.
Why it matters: WMFHA’s roadmap highlights the advocacy and workforce efforts that will shape our operating environment. A stronger voice in Olympia on landlord rights and pro-housing policies could ease regulatory hurdles. Workforce development programs may expand the talent pool of property managers and maintenance staff, benefiting clients. The focus on community and coalition-building suggests a more unified multifamily industry, which can lead to more favorable policy outcomes for our industry.
Local Control Battle – Sherwood Fights Oregon’s Housing Laws
Just south of Washington’s border, a drama unfolding in Oregon could have ripple effects across the region. The city of Sherwood, OR, is holding an unusual January special election to challenge state housing mandates. Oregon has been aggressive in pushing cities to allow more housing: laws like HB 2001 legalize duplexes on single-family lots and trim back local rules to speed development. Sherwood’s mayor and numerous residents oppose these universal regulations, contending that they disregard local input. The Jan. 13 ballot measures in Sherwood would require public hearings for large housing projects and ensure the city council has the final say on any urban growth boundary expansions (annexations). Essentially, Sherwood is trying to reclaim some control over how it grows, even if that defies Salem’s requirements. Governor Kotek, meanwhile, stands by the state’s approach—noting that only strong state leadership will overcome local NIMBYism to fix the housing shortage.
The stakes: If Sherwood’s rebellion succeeds, other cities (in Oregon and beyond) might be emboldened to assert their development rules or demand greater say against state directives. It highlights a broader tension in housing policy: state vs. local. Washington has seen a milder version—e.g., Seattle and Olympia encouraging more density but mostly with city buy-in. Watching Sherwood will be instructive. For housing observers, it’s a reminder that community sentiment and local governance play huge roles in how many homes actually get built, regardless of state law.
Portland Housing Highlights – 2025 Recap and What’s Next
The Portland metro area, including Southwest Washington, felt significant housing policy shifts in 2025 that set the stage for 2026. A new Portland Mayor, Keith Wilson, made an ambitious (some say unrealistic) push to reduce homelessness in one year. The city opened hundreds of new shelter beds and, by late 2025, started enforcing a ban on street camping again. Although these actions moved some people off sidewalks and into shelters, Portland clearly failed to end unsheltered homelessness. However, this marked a shift towards a more interventionist approach towards visible homelessness, a change that many businesses and residents had been advocating for.
On the housing development side, Portland’s City Council pursued strategies to boost construction and protect renters. In partnership with Oregon’s governor, the city approved waiving development fees on new housing to lower costs for builders and stimulate projects. The Council also began exploring social housing models (even visiting Europe for inspiration) as it seeks long-term affordability solutions beyond the private market. They implemented policies against rent increases (alleged “predatory” rents) and mulled new regulations to keep housing attainable. The year ended with some turmoil. The city’s newly appointed “housing innovations” director resigned amid controversy (including $21M in “discovered” funds paid by landlords for their rental units). The city remains under a continued sense of urgency into 2026.
Implications for Portland/Vancouver investors and developers: The fee waivers and pro-growth signals from City Hall are positive if you’re looking to build or renovate in Portland—your projects might pencil out a bit better with those savings. At the same time, Portland’s increased tenant protections mean landlords need to be mindful of new rules (for example, any local caps or notice requirements beyond state law). For Vancouver and other suburbs, Portland’s policies are a double-edged sword: if Portland makes building easier, it could keep more development (and renters) on the Oregon side of the river, but if Portland’s process still struggles, places like Vancouver will continue to absorb growth. Overall, the Portland area’s attempt to innovate in housing policy will be an important trend to watch this year, as it could influence everything from regional rent growth to where new apartment projects land.
Deal Watch—$8.6M Apartment Sale Shows Investor Demand (Vancouver, WA)
Corporate Woods Apartments in Vancouver sold for $8.61 million, capping off 2025 with a notable multifamily transaction in the Portland-Vancouver metro. The 47-unit property (built in 2003) went for about $183k per unit, per DJC Oregon. HFO’s brokerage team represented both buyer and seller, and the deal closed just before Christmas. Why is this sale interesting? For one, it reaffirms that investor appetite in Southwest Washington remains solid—even without flashy amenities, a well-kept, well-located complex was 95% occupied and drew competitive bids. Vancouver continues to be a hot spot as an extension of the Portland market, often offering slightly better yields and fewer regulatory hurdles while still attracting the same tenant pool.
The buyer’s strategy is also telling: a long-term hold with gradual unit upgrades as leases turn over. This mirrors what we’re hearing nationally—value-add is still the name of the game, but the upgrades are being timed with natural turnover to manage costs. With interest rates higher, buyers are more cautious on underwriting, but as this deal shows, they’ll transact if the property has strong fundamentals and a clear value-add path. For the broader market, expect 2026 to bring more of these targeted acquisitions. Well-priced assets in secondary markets like Vancouver (with solid rents and upside potential) should continue trading, even if overall sales volume is down from the boom years. It’s a reminder that real estate is local: in the right submarket, deals are happening.
National Trends – Renters Staying Put, Construction Cooling Off
Zooming out, a few national housing trends are likely to color our local market dynamics in 2026:
- Renters are continuing to choose renting over owning: Across the U.S., the cost gap between owning and renting remains historically wide. Mortgage rates hovering around 6-7% and high home prices have made the monthly cost of buying a starter home significantly more expensive than renting an equivalent unit. As a result, renter turnover is low. RealPage data show renter retention at near all-time highs, as fewer households are making the jump to ownership. Many renters are simply renewing their leases. This trend benefits landlords/investors with stable occupancy, but it also means less churn in the residential sales market (tough news for Realtors). It could persist until either mortgage rates come down or home prices soften. (Source: Realpage 12/22/25)
- Construction slowdown: 2025 delivered a record number of new apartments nationally (around 500,000 units), but a sharp pullback is underway. Elevated interest rates and construction costs have led to far fewer new projects breaking ground. Experts predict that new multifamily deliveries in 2026 might fall to ~300,000 units nationwide, well below what’s needed to keep up with demand. For renters, this could mean less relief on rent prices than expected, as the glut of new units eases and markets tighten up again. For developers, it might improve the lease-up outlook for projects finishing construction now (less competition coming online next year). But it also raises longer-term concerns about undersupply if building doesn’t pick back up in 2027 and beyond. (Realpage 12/22/25)
- Policy watch: Housing affordability remains a hot topic in Washington D.C. and state capitals. While a divided Congress limits sweeping federal action, we are seeing targeted moves – for example, the Federal Housing Administration (FHA) tweaking programs to make condos more accessible or proposals to expand Low-Income Housing Tax Credits. States are taking the lead: California and Oregon are pushing zoning reform, Colorado is debating rent control, Washington is budgeting more for housing programs, etc. One intriguing development: several states are wrestling with how to address homelessness, with differing philosophies (some prioritizing housing and services, others focusing on stricter enforcement). These policy decisions can influence how investors feel and where money goes—places with helpful solutions might draw more development interest than those that are harsh or stuck. Keep an eye on these broader currents, as they often set the tone for our local housing market environment.
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