Amid a Housing Crisis, Oregon Issues Building Permits for Multifamily Units at the Slowest Pace in 12 Years

Oregon issued permits for only 4,800 multifamily housing units in 2024—the lowest in 12 years—falling far short of Gov. Tina Kotek’s 36,000 annual unit target set in her 2023 homelessness emergency declaration. The state needs 95,000 units immediately and nearly 500,000 over the next 20 years, but despite five new housing laws enacted in July to simplify permitting and expand “middle housing” options, private sector construction remains constrained by cautious lenders, higher interest rates, and out-of-state banks’ negative perceptions of Oregon’s quality of life. While state funding helps stimulate development, experts say it cannot overcome these larger market forces that are driving the housing shortage.