Portland’s Quiet Housing Revolution Is Starting to Pay Off

More than a thousand new homes have quietly slipped into Portland’s single-family neighborhoods over the past two years—and most people haven’t even noticed.

That’s by design. These aren’t skyscrapers or subdivisions on the outskirts of town. They’re duplexes, triplexes, fourplexes, and cottage clusters, made legal by the city’s Residential Infill Project (RIP), which went into effect in August 2021. In a new report, Portland’s Bureau of Planning and Sustainability confirmed what housing watchers have long suspected: this gentle shift is making a measurable difference.

As of the first half of 2024, nearly 1,500 middle housing units and ADUs have been permitted in Portland’s low-density zones. Those zones, which cover most of the city’s residential land, were previously limited to detached single-family homes. In 2023, middle housing made up 23% of new units in single-dwelling zones. By mid-2024, that number had jumped to 43%.

What Portland’s policy shift enables. Graphic by Sightline Institute.

Affordable by Design, Not by Subsidy

The new homes aren’t just more numerous—they’re also more affordable.

According to sales data analyzed in the report, newly built middle housing sold for $250,000 to $300,000 less on average than newly built single-detached homes. The primary reason: they’re smaller. Portland’s reforms cap the size of new homes in low-density neighborhoods, meaning developers have a stronger incentive to build multiple modest homes rather than a single oversized one. This approach is producing what Portland has long struggled to deliver: new market-rate homes that don’t require deep subsidies and aren’t priced exclusively for high-income buyers.

One of the early fears about RIP was that it would trigger a wave of demolitions, accelerating displacement in historically marginalized neighborhoods. But the data tells a different story: demolition rates have remained stable, even as middle housing production has surged.

When demolitions do happen, they’re more likely to result in multiple homes replacing a single outdated structure. That means more housing options without increasing the pace of neighborhood change—and more chances for new families to live in areas that were once financially out of reach.

Portland’s affordable housing programs are also evolving to take advantage of the middle housing tools. The Portland Housing Bureau has begun issuing grants and tax abatements to homeownership developments—including fourplexes and triplexes—that meet income qualifications. According to the report, more middle housing builders are applying for affordable ownership assistance, especially in parts of the city like outer east Portland where land is marginally less expensive.

Portland’s Progress Is a Model, Not a Mystery

Portland’s housing reforms aren’t a silver bullet, and they won’t fix everything overnight. But they’re a powerful reminder that cities don’t have to wait on state or federal action to begin solving the housing crisis. With smart, well-designed policies, they can begin to unlock affordable, human-scaled homes in the neighborhoods people already love.

The Strong Towns Housing-Ready City Toolkit offers practical guidance for local governments and advocates looking to implement similar zoning reforms. From policy templates to case studies, the toolkit equips cities of all sizes to lay the foundation for affordable, resilient housing for the next generation.