apartment construction portland

Recently opened and under-construction apartment buildings on Southeast Division Street in Portland. New construction is starting to provide some relief for renters, a survey of landlords suggests.

(Elliot Njus/The Oregonian)

A surge in new apartment construction has finally brought a little relief for Portland-area renters, a new survey of metro area landlords suggests.



Apartment vacancy has climbed only slightly in the six months since apartment industry association Multifamily Northwest's last survey. The group found this month that 3.66 percent of apartments were empty during the fall survey period, up from 3.45 percent in April.



And while rents increased 5 percent on average in that six-month period, the hikes can mostly be attributed to brand-new units included in the survey for the first time.



Existing apartments saw slower rent growth as landlords faced growing competition from those newly constructed units.



The average rent across the metro area has risen to $1.22 a square foot. On average, two-bedroom apartments rent for $885 a month, one-bedroom apartments for $938, and studio apartments rent for $908. (Studio and one-bedrooms tend to be located closer to downtown, where rents are higher, and newer apartment buildings include more of them.)



Even as the vacancy rate ticks up, the rental market remains competitive, especially in the most in-demand neighborhoods. The Portland area as a whole sees apartments vacant for an average of 38 days between tenants, but apartments on the close-in east side of Portland are vacant for fewer than 12 days on average.



In a sign of the times, tenant placement, a service offered by real estate agencies in larger cities but once mostly unnecessary in Portland, has become the fastest-growing business for Portland-based Living Room Realty.



That's largely because of the fast-paced market, a particular challenge for people moving from elsewhere.



"You have to be the first one call a landlord, first one to get your application in," said Jenelle Isaacson, the owner of Living Room Realty. "And how many people with demanding jobs and children can just get up and drive to Eastmoreland and fill out an application — just to hope they get it?"



Newly completed apartment buildings are starting to come to market and ease some of the crunch, but they're still seeing strong demand.



Appraisal firm Barry & Associates said in a recent report that some 9,300 apartments have been built in the metro area since 2013. Another 8,200 are under construction, and nearly 14,000 have been proposed.



Simpson Housing last week opened a leasing office for Victory Flats, a 312-unit apartment complex it's building in Beaverton. The first units won't open until March, but prospective tenants have already signed up for hard-hat tours.



"It's really gangbusters," said Larry Miller, the company's regional vice president. "The phone's ringing off the hook, and a whole host of people are coming to visit the preview center.



This post will be updated. Help inform our reporting: tell the reporter about your experience looking for an apartment in the Portland area.



-- Elliot Njus