Oregonian Report: Portland's Attempt to Regulate Housing May Trigger Another Round of Skyrocketing Rents, Displaced Tenants, Homelessness

The Oregonian is reporting on local economists' warning that the City of Portland's decline in apartment permit applications may lead to another housing crunch, higher rents, and more homelessness. [Note: link access requires a subscription.]

In 2017, Portland implemented a forced inclusionary zoning policy, mandating that developers include affordable housing units in all developments of more than 20 units.

The Oregonian's reporting indicates that by ordering builders to include low-rent apartments in new projects, the incentive for developers is to avoid the requirements by constructing smaller buildings.

Permit applications fall off a cliff in 2020
The number of multifamily permits issued for construction dropped by 2/3 in Portland last year, with Portland issuing permits for fewer than 1,500 new units. For each of five years previous, the average was 4,600. 

Download the excel of permit Activity in Portland 2005-2020

Portland's permit applications fall despite continuing in-migration.
Compared to other cities in the West, the number of permit applications dropped 66% in Portland, 42% in Seattle, 26% in Salt Lake, and 23% in Denver. 

A State of Oregon economic report [See slide #4] released in early March indicates that net in-migration is expected to continue at a rate of 30,000-40,000 each year into Oregon. Historically, the vast majority of new residents relocate to the Portland metro area. 

The reporting comes on the heels of a report released earlier this week by the City of Portland Auditor's office indicating the city's building permit process remains riddled with time-consuming delays, shoddy customer service, and lack of accountability.