Reddit Portland went a little crazy today after PDXRacer posted this Craigslist ad for a short-term Accessory Dwelling Unit (ADU) in the Milwaukie area with the headline, “$1700 for 570sf closet .. you have to be effing kidding me.”
According to the post, the unit is actually 546 square feet, which, at $1,700 a month, means the future tenant will be paying $3.11 per square foot. This might sound high, but a quick Craigslist search for other units of approximately the same size and price turned up this studio apartment downtown and this one-bedroom near OHSU in a “charming historical building.”
And those examples are actual units in real buildings. That’s not always the case. Back in August, a Facebook group concerned with Portland’s lack of affordable housing had a lively discussion about this place, which was essentially a converted shed:
READ MORE AFTER THE JUMP
While the prices are a lot different, the square footage is also a lot different. Also, let’s take a look at the amenities on each:
Similarities:
• Detached ADUs
• Southeast location
• All utilities included
• Easy access to public transportation
Differences:
• Everything else
The unit that was renting for $675 was flagged for removal not long after it was posted when watchdog Facebookers determined it wasn’t a legally habitable structure, so I wasn’t able to connect with the owner to ask questions.
The unit that Redditers were hating on today is actually a legitimate ADU recently built by local architect Alan Armstrong. Armstrong answered my call and explained his situation to me. He says his parents, who live in Dallas, Texas, spend six months of the year in Portland. They were spending $1,500 per month on a similarly-appointed, attached ADU in the heart of Milwaukie. Rather than continuing to rent, the couple decided to pay to build an ADU on Armstrong’s property, live there half the year, and rent it out the other half (hence the short term rental and the fact that it’s furnished).
“When we went looking for comparable units in the area to help us set the price, we found there really are none,” Armstrong says of how he set the rent at $1,700 per month. “So we started high. But we haven’t got any responses except for one negative response this morning, so we lowered it.”
The rent is now set at $1,550 per month. Armstrong points out that this is a brand new space, has a full kitchen and bath, comes with a washer and dryer in the unit, has a large closet and storage space, and includes all utilities. He says he’s paying $120 per month just for cable TV in the ADU.
The city of Portland in 2012 passed a resolution that waives System Development Charges—a fee paid on new construction that is used to fund a portion of new streets, sanitary sewers, parks and water—on ADUs, which is part of the reason Armstrong and his parents decided this unit would be a wise investment.
Armstrong says his parents invested about $80,000 in building the unit, and he estimates between he and his father they’ve put about $30,000 worth of sweat equity into the building.
“We’re not wealthy by any means, and I understand there’s a gentrification problem in Portland right now,” he says. “For people like me it’s really difficult to walk the fine line between being a person who needs to start paying off an investment and seeing the renters in Portland unable to afford a place to live.”
Edit: Armstrong contacted me after the blog went live to clarify that he lowered the price not only in response to the negative email, but also because of a “nagging sense that [the price] was too high.”
Another huge win for kneejerk Interrnet mob justice!
I guess some people think the best way to help get rid of the housing shortage in portland is to harass people who are actually doing something about it.
I guess price-gouging people over what amounts to little more than a FUCKING SHED for $1500.00 is addressing the housing shortage and not actually, actively participating in it, right? The fuck outta here with that shit and go back to where you fucking parasites came from.
> His folks were likely overpaying for their initial unit.
> They were naive in thinking the market would do the same.
> He complains about paying $120/mo for a service no one even uses anymore, in a unit that is still under construction.
> No one can even validate whether or not it is worth the $1500-1700 rent because it is incomplete.
It’s not even an issue of thinking he’s being greedy as is so obvious in many other bad rentals, per se. It just sounds like he is completely clueless and in over his head.
Yet another article from Shelby King bitching about gentrification and offering zero ideas for what to do about it. Here, let me get you started.
Regulatory solutions like affordable housing implementation are a great idea however they are not going to prevent an owner from charging too much for a space. Do you whine about the price of tenderloin at New Seasons? Pointless really. Is it fair to insist that there are adequate affordable grocery stores in a neighborhood? Asolutely.
Rent going up and neighborhoods getting nicer are, on their own, a naive view of the problem. The issue is that people are getting displaced. So in addition to putting a bandaid on it by creating affordable housing, let’s provide educational and economic opportunities so that residents can afford to stay in a neighborhood as it improves.
Another good idea that isn’t enough: minimum wage increases. Sure we should do it but what we really need is to train people so they don’t have to take minimum wage jobs no matter what the minimum. And make that training affordable.
Attacking guys like this landlord is just short sighted, especially when many of those lobbing the attacks are obviously members of the white college educated privileged class themselves. How many of those reddit posts were written in a gastropub?
“redditors”
Why would anyone care that he pays $120 for cable? His parents want it so they should pay for it.