Portland, OR – Portland’s housing crisis has prompted a collaboration between city leaders, the Oregon governor’s office, and the private sector, as they work to find solutions to the city’s slow pace of housing development. Mayor Keith Wilson and Governor Tina Kotek convened a meeting on Thursday with housing developers, construction firms, and other key city officials to explore ways to increase housing production in Portland.
At a press conference following the meeting, Mayor Wilson underscored the urgency of the situation, stating, “We’re struggling here in Portland. Our younger residents, our retirees, our low-income folks are being hit hard by inflation and housing costs, and I think that if we increase housing supply, we increase housing affordability.”
The group has focused its efforts on the construction of market-rate apartments, a sector that has faced significant hurdles in recent years. Wilson and Kotek outlined their plan to streamline the permitting and zoning processes to help speed up construction. “It is about efficient permitting, efficient time to construction,” Kotek explained. “Clarity and consistency is good for developers because time is money.”
Both leaders emphasized the need to attract more investors to the city. Due to high interest rates, lengthy permitting procedures, and a general disinterest in Portland’s real estate market, investor confidence has declined. Portland currently ranks 80th out of 81 U.S. cities in the Urban Land Institute’s “Top Markets 2025 for Overall Real Estate Prospects.” A recent report by the Portland Metro Chamber highlighted the risks posed by a lack of investment, warning that stagnant investment and job growth could lead to a decline in tax revenue, exacerbating the city’s economic troubles. Governor Kotek expressed her commitment to reversing this trend. “The city of Portland is open for business. We are going to grow,” she stated.
The city’s ambitious goal is to build more than 120,000 new homes by 2045 to meet state housing production requirements. However, the construction industry’s post-COVID struggles have made it difficult to keep up with the demand. Permitting for new apartments has slowed to levels not seen since the 2009 financial crisis, raising concerns that the city may fall behind its housing targets.
Governor Kotek also acknowledged the role of federal policies in the housing development landscape. She pointed to potential cuts to federal housing funds and increased tariffs that could drive up building costs. “I would argue the tariffs will not help in that regard,” Kotek said, referring to concerns about how federal policies could hinder housing affordability and construction.
This initiative isn’t Kotek’s first effort to address Portland’s economic struggles. In 2023, the governor established a task force to tackle the city’s lagging post-pandemic economy. The task force’s recommendations led to actions such as the declaration of a fentanyl emergency and the imposition of a ban on new taxes in Portland. Now, this new task force will focus specifically on market-rate housing, which Kotek believes is key to revitalizing the city’s housing market.
While market-rate housing is the immediate focus, Kotek acknowledged the need for continued investment in affordable housing as well. Recent efforts, such as two affordable housing bonds, have helped increase affordable housing stock, but with those bonds winding down, there is no clear funding solution for future projects.
Mayor Wilson also emphasized that increasing market-rate housing will support efforts to address homelessness. His administration is focused on increasing shelter capacity, but he noted that without more housing, individuals transitioning out of shelters may not have viable long-term housing options. “It’s about making sure that everyone at every income level has a safe, decent place to sleep every single night in Portland,” Wilson stated.
The new task force, made up of city officials, construction industry leaders, and developer advocates, will work to address the complex challenges of housing development in Portland. By streamlining processes, attracting investment, and improving housing availability, city leaders hope to tackle the housing crisis and create a more sustainable housing market for the future.
