10/06/2025
Small developer tour of Portland
I’m heading home today after another excellent small developer field trip w Alliance, this time to Portland OR.
Takeaway 1: zoning/land use code reforms do work to incentivize housing development and begin to address housing shortages in/around cities. Multiple rounds of code reforms in Portland create flexibility for the development of adus, tiny homes and middle housing. In this market and regulatory environment, small developers are responding, and construction sites and new developments are popping up throughout the areas east of downtown that we toured.
These zoning reforms have come from concerted advocacy by developers and the greater community that have been able to overcome the voices of nimbys and reach a receptive city government. Noteworthy changes include the elimination of parking minimums in many cases, the allowance of increased housing density and variety (fourplexes, six plexes, cottage clusters, adus), the elimination of many restrictions relating to tiny houses, and the enabling of middle housing land division strategies (fee simple subdivisions, condo divisions) to help create homeownership/for sale opportunities.
Casitas, duplexes, and other structures are sprouting in formerly SFR neighborhoods. Some developers are knocking down existing homes, but a lot of developers are preserving existing homes and building around them due to the Increased flexibility around siting in the code reforms. Property values are increasing (reportedly a 30% increase in property values after passage of the zoning reforms due to increased site developability).
The increased density has enabled the creation and/or enrichment of neighborhood hubs, so you see strips of commercial w restaurants and coffee shops and other amenities popping up to serve growing demand. the availability of transit, bike paths, and proximity to amenities allow households to reduce the number of cars needed and even enable households to be car free. Some areas, like the district around Division St, have seen dramatic transformation including increase in density, traffic, commercial activity, and property values.