Middle Housing Units Transform Portland’s Neighborhoods in Three Years
Portland has seen a significant shift in its housing landscape, with more than 1,400 “middle housing” units added from 2021 to 2024 in traditionally low-density neighborhoods, according to a new report from the Bureau of Planning and Sustainability. These new constructions include accessory dwelling units (ADUs), often known as “granny flats,” duplexes, and other small multi-unit buildings, as well as cottage clusters—small homes arranged on a single lot.
The Residential Infill Project (RIP), which took effect in 2021 and expanded the following year, has made middle housing the most prevalent type of new construction in areas historically zoned for single-family homes. Since the project’s implementation, single-detached houses, which once accounted for over half of new units in Single-Dwelling Zones, now make up less than 20% of new production in these areas.
The majority of this homebuilding activity is concentrated in popular and generally expensive inner east Portland neighborhoods. After the first iteration of the Residential Infill Project in 2021, fourplexes became the most common type of middle housing. However, by early 2024, cottage clusters surpassed both ADUs and fourplexes in popularity.
These changes were driven by laws aimed at increasing the housing supply and introducing smaller, more affordable alternatives. The report indicates that the new middle-housing units sell for about $250,000 less on average than new single-detached homes.
Patricia Diefenderfer, the Bureau of Planning and Sustainability’s chief planner, emphasized the project’s success: “The Residential Infill Project is delivering on its purpose. We are seeing a meaningful expansion of housing options in some of Portland’s most desirable neighborhoods, making it easier for Portlanders to find homes that meet their needs.”
From August 2021 to June 2024, Portland permitted approximately 6,650 total housing units, with middle housing units accounting for about 21% of these permits. This period has seen a significant drop in overall residential construction compared to pre-pandemic levels.
If you’re considering the impact of these changes on your real estate plans, whether you’re looking to buy, sell, or invest, don’t hesitate to reach out!
