Portland Apartment Construction Update 03/26/25

Portland’s apartment construction has hit its lowest level in over a decade, a worrying trend for the local housing market. Factors such as rising interest rates, a declining workforce, and stringent inclusionary zoning policies are key contributors to this decline. These policies compel developers to limit project sizes to avoid affordable housing requirements, ultimately shrinking the housing supply. Additionally, statewide rent control has discouraged outside investment. Experts predict that the next two years will see the weakest apartment completions since 2012-2013, likely resulting in increased rents for tenants. This situation underscores the intricate relationship between policies and market dynamics in addressing Portland and Oregon’s statewide housing challenges. Read more here.