Economic Forecasts Signal Strength and Investment Opportunities in the Pacific Northwest
The latest economic forecasts for Oregon and Washington show strong growth in state revenues and job creation, setting the stage for continued investment in the region. With Oregon’s general fund revenues expected to hit $27.2 billion and Washington’s employment growth exceeding expectations, these positive trends are paving the way for future multifamily demand as infrastructure investments and housing developments gain momentum.
Oregon’s Economy
On August 28th, the Oregon Office of Economic Analysis released its latest forecast. State revenues have exceeded expectations, particularly in personal and corporate income taxes, showing growth of $676 million from the previous forecast. The labor market does show signs of softening, but the overall economy has been solid despite layoffs in key anchor industries. Oregon’s strength in numerous industry clusters may mitigate those negative effects. Oregon has two million jobs, so the loss of a few thousand is relatively small. General fund revenues for 2023-2025 are now expected to reach $27.2 billion, a significant increase from previous forecasts.
Washington State’s Economy:
Also on August 28th, the Washington State Economic and Revenue Forecast Council released its economic and revenue update. Washington’s employment growth exceeded expectations, with nonfarm payrolls increasing by 15,600 jobs in June and July. Housing construction slowed with declines in both single- and multi-family housing. State revenues are currently running about 1% below forecasts.