Rents in Portland have fallen for consecutive months, suggesting new supply is making a dent in meeting the city’s housing needs.

In October, rents here were 0.4 percent lower than a year earlier, and 0.8 percent lower than September, according to Apartment List. The new data indicate rental housing costs have crested after strong increases in recent years.

The median rent was $1,140 for a one-bedroom apartment, and $1,350 for a two-bedroom apartment, according to the rental website. October was the second month in a row rents declined in Portland. The city’s decline was steeper than the nation’s, where rents slipped 0.1 percent.

“Demand is weak, relative to the supply,” said Sam Rodriguez, senior managing director of Mill Creek Residential Trust, a major multifamily developer in Portland. “That’s why you’re seeing this very anemic growth compared to the growth we had before.”

Other data also indicates rents are retreating. At Hassalo on Eighth, a Lloyd District development with 657 apartments, rents were $1,671 as of Sept. 30, down 4 percent from $1,735 a year earlier. (Hassalo on Eighth is owned by American Assets Trust, a publicly traded company).

Managers of some rental properties are offering concessions, particularly in the luxury market. At Yard, for example, prospective renters are being offered a month free and a free gym membership. A month free is being offered for some units at Slate. Up to six weeks free is being offered at NV in the north Pearl District.

But the decrease in rents for luxury units has not trickled down for middle-income renters, said Jamey Duhamel, policy director for city Commissioner Chloe Eudaly.

“It’s softening at the high end,” Duhamel said. “That has not in any way translated to lower rents for folks who are stretched thin, or even the average renter.

“We definitely don’t see any slowdown in the need,” she added.

Nevertheless, supply in certain markets, including the Pearl District and Central Eastside, has surged as major apartment projects have opened.

“As developers, this is what we normally do – we overbuild,” Rodriguez said. “That puts a lid on rents for a while.”

Construction has continued apace. Portland’s crane count stood at 32 in July – more than New York, which had 18, according to Rider Levett Bucknall, a firm that tracks the data. Seattle had the most cranes, with 58.

The city of Portland has responded to a tight rental market with a slew of housing regulations. Inclusionary housing rules took effect Feb. 1, requiring developers of projects with 20 units or more to provide a portion of affordable units, or pay a hefty fee. Portland also instituted relocation assistance, requiring landlords to compensate tenants when issuing no-cause evictions or raising rent by 10 percent or more.

Developers responded to inclusionary housing by rushing to apply for projects before the rules took effect. Some of those projects are now under construction, while others are stalled.

“We’ve got a very, very large pipeline,” Rodriguez said. “I’m not sure how much of that is going to get done. A lot of it is in design review.”

Rodriguez is a member of the Portland Design Commission, which performs design review. Multifamily developers are grappling with inclusionary housing, which dents their revenue, he said.

“Everybody’s trying to figure out inclusionary housing,” he said. “We’re struggling to make deals work.”

Rodriguez predicted rents will again grow in about a year as the current supply is absorbed and few additional apartments get built.

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Unico Properties held a grand opening for its new NV mixed-use tower in the Pearl District at 1261 N.W. Overton St. The 26-story building, designed by ZGF Architects and built by Andersen Construction, features 284 residential units, ground-floor retail space and high-end residential amenities.

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Unico Properties on Wednesday marked the opening of NV, a 26-story residential tower in the north Pearl District.

NV – the initials are pronounced like the word “envy” – has 284 residential units in one-bedroom, two-bedroom, penthouse and townhome configurations.

Currently, competition for luxury apartment tenants in Portland is strong. In the north Pearl, Modera Pearl, Block 17 Apartments and The Parker are nearby. To the west, developers are transforming the Slabtown neighborhood with projects such as the Leland James and L.L. Hawkins buildings.

Managers of some apartment towers have turned to offering incentives. Up to one month free is being offered at NV. About 10 percent of units are leased, including a majority of the penthouses, said Julie Currier, a Unico senior development manager.

“We’ve met our leasing goals,” she said. “We’re seeing great traffic and a lot of interest.”

NV, at 1261 N.W. Overton St., rises to 250 feet in height. Its exterior is characterized by the extensive use of blue tile. The building has 24 stories that rest upon a two-story podium. The tower is set 45 degrees to the block, a move made to give residents views other than the neighboring apartment towers.

The entire third floor is devoted to lifestyle amenities. Residents can work out in a fitness room, shift into their downward dogs in a yoga room or enjoy drinks in a lounge area with modern furniture, TVs and a lengthy, pristine shuffleboard table.

A 7,000-square-foot terrace offers fire pits, barbecue grills and an outdoor theater. The building also has a small outdoor dog run and a basement dog washing area. Artwork from Portland and Seattle artists is sprinkled throughout.

Two ground-floor retail spaces total 4,700 square feet. One is envisioned as a restaurant that would spill into the lobby.

NV has two subterranean parking floors totaling 227 stalls. Bike parking is also available, with 473 stalls and 152 storage spaces.

Units range from one bedroom, one bathroom to two-story townhomes with two bedrooms, a den and two bathrooms.

Advertised rents range from $1,595 for a one-bedroom apartment to $4,500 for a 26th-floor penthouse.

During a grand opening event Wednesday, a young woman inquired about one-bedroom units, emphasizing she wants ample closet space.

“I absolutely have a ton of dresses,” she said.

NV was designed by ZGF Architects, and built by Andersen Construction. ZGF and Ankrom Moisan Architects collaborated on the interior design. Site demolition began in August 2014, and residents began moving in on Sept. 16.

Unico Properties is advertising NV heavily, including with a large billboard that face’s Powell’s Books at Southwest 10th Avenue and Burnside Street.

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