Pacific Northwest Infrastructure Investments Set to Drive Growth in Multifamily Demand

Major infrastructure projects across the Pacific Northwest are laying the groundwork for significant regional growth, creating new opportunities for multifamily investment. From the $1.5 billion Interstate Bridge Replacement Program connecting Portland and Vancouver, to the redevelopment of the OMSI District and sustainable housing initiatives, these projects will boost job creation, improve connectivity, and increase the region’s appeal to renters. Learn how these developments could shape the future of real estate in the area.

Regional Infrastructure News

• The Interstate Bridge Replacement Program: A $1.5 billion investment has been allocated by the Federal Highway Administration to replace the aging I-5 bridge connecting Portland and Vancouver, Washington. This recent allocation brings secured funding to $4.1 billion. The project is estimated to cost $5 to $7.5 billion. Tolls are expected to cover $1.2 billion, and construction is anticipated to begin in 2026.
  Learn More: https://wsdot.wa.gov/about/news/2024/historic-federal-funding-moves-interstate-bridge-replacement-program-closer-construction

Oregon Job Creation and Development Projects

• OMSI District Taking Shape: Oregon’s Museum of Science and Industry has set a groundbreaking plan for late 2025 for the redevelopment of 24 acres around the museum on the Willamette River’s east side. The Portland City Council has just approved $15.4 million to help cover road reconfiguration and a new waterfront park. OMSI envisions approximately 3 million square feet of new development, including restaurants, hotels, offices, stores, 1,200 apartments, and a Center for Tribal Nations. The project has received approval from the Portland Design Commission and Prosper Portland. OMSI is committing $33 million to the project, private investors have pledged $44 million, and OMSI expects a total overall public investment of $45 million.  OMSI estimates more than 11,000 new jobs to result from the new development including both temporary construction positions and long-term jobs in new businesses. The development is expected to boost demand for housing and amenities in the area and improve the neighborhood’s overall desirability.
  Learn More: https://omsi.edu/future-omsi-district

• Port of Portland Housing Innovation Campus: A Housing Innovation Campus located on the Port of Portland’s 53-acre Marine Terminal 2 is expected to create 17,300 lumber industry and manufacturing jobs throughout Oregon by focusing on using sustainable mass timber technology for modular housing construction. The project is moving forward with a recently earned $41.4 million in federal funding from the U.S. Economic Development Administration. The project will address the housing crisis in Oregon by developing housing prototypes that increase the efficiency and affordability of homebuilding. Terminal 2 will house a manufacturing facility for affordable housing mass timber products that can be shipped throughout the state. The project emphasizes forest restoration, sustainable sourcing and workforce training partnerships with community organizations and educational institutions.
  Learn More: https://www.eda.gov/funding/programs/american-rescue-plan/build-back-better/finalists/port-of-portland

• Building a Better 82nd Avenue:  Portland is currently working on $150 million in improvements on SE 82nd with construction expected to continue throughout 2025. These upgrades will boost neighborhood livability, which could elevate renter demand.
  Learn More: https://www.portland.gov/transportation/planning/82nd-avenue/news/2024/9/6/building-better-82nd-september-6-2024