91ÊÓƵ

The Portland metropolitan region is set to experience a surge in new apartment construction, according to a from local apartment appraisal company Barry & Associates.

In its spring 2014 Construction Report, released Tuesday, the company said it is tracking nearly 13,500 proposed units as part of 117 projects throughout the four-county metropolitan area – an 80 percent increase over the past 12 months. Additionally, the vast majority of those projects likely aren’t speculative, the company reported. It identified the preponderance of that activity via permit applications and requests for design assistance.

“This typically means that a significant amount of money has already been spent on acquiring land, developing drawings, commissioning market studies, and other pre-construction related costs,” the company reported. “Most of the projects taken to this level will get built.”

Barry & Associates expects 12,000 to 14,000 new apartment units to be completed between this year and next, which it says will help balance the market for renters and landlords. The majority (32.8 percent) of the projects on tap are slated for close-in east Portland; 19.8 percent for the close-in west side; 19.4 percent for the suburban west side; and 11.4 percent for north Portland, with the remainder in other outlying areas.

Portland’s apartment vacancy has been at historic lows for the past several years, which has put upward pressure on rents. Last fall, vacancy was at 3.11 percent while rents were up 6.8 percent over the course the year, according to data by Multifamily NW – a trade organization representing local apartment owners and managers. Barry & Associates predicts vacancy to rise to 4.5 percent to 5.25 percent by late 2015 because of new inventory.

Multifamily NW will present Barry & Associates’ construction report as part of a presentation Wednesday morning during a sold-out event at the Multnomah Athletic Club.