![Portland Apartment Construction Falls to Lowest Level in More Than a Decade [03/19/25]](https://www.hfore.com/wp-content/uploads/2026/05/Depositphotos_10425436_S.jpg)
Portland Apartment Construction Falls to Lowest Level in More Than a Decade [03/19/25]
Willamette Week | Anthony Effinger | March 19, 2025
Willamette Week turned to HFO Investment Real Estate co-founder Greg Frick for an expert read on why apartment construction in the Portland metro area has dropped to its lowest level since 2013. CoStar data cited in the story shows units under construction fell every quarter in 2024. The year ended at just 4,375 units. This is far below the 10-year quarterly average of 10,374. Frick traced part of the slowdown to the city’s 2017 inclusionary zoning rules. Those rules prompted developers to cap projects at 19 units to sidestep the affordability set-aside that kicks in at 20. “We’ve seen a bunch of buildings that are 19 units or fewer,” he said. He noted that the workaround puts a fraction of the possible units on parcels that could hold many more.
Frick framed the trend as a warning to policymakers pushing for more housing supply. “If you want the private sector to build housing, you can’t keep setting up these hurdles,” he said. “You’re not making a compelling case to invest here.” CoStar expects Portland to add only about 5,000 apartments across 2025 and 2026. This will be its weakest two-year stretch since 2012 and 2013.
Read the full story: Portland Apartment Construction Falls to Lowest Level in More Than a Decade 031925
Watch HFO’s latest YouTube interviews and subscribe.