Multifamily Construction Opportunities in Oregon’s Secondary Cities
Oregon’s secondary markets—Salem, Eugene, Corvallis, and Bend—are outperforming Portland as hubs for multifamily investment. While the Portland metro faces prolonged permitting timelines, rising costs, and declining starts, these cities offer streamlined approvals, favorable policy environments, and strong demographic tailwinds. For investors, this creates an opportunity to secure exposure in supply-constrained markets positioned for sustained growth.
Market Highlights
Salem: 741 permitted units since mid-2024; demand fueled by industrial expansion (Amazon, Dollar General, Gensco). Well-suited for workforce housing.
Eugene: $7.5M riverfront redevelopment adding 700+ units; strong demand from University of Oregon, young professionals, and tech.
Corvallis: Nationally ranked (#9 small metro for construction); 600+ units delivered/planned, supported by zoning reforms and incentive programs.
Structural Drivers
Supply-Demand Gap: Oregon requires ~29,500 new units annually; only 13,000 permitted in 2024. Secondary cities remain under-penetrated by institutional capital.
Cost & Timing Advantages: Secondary markets cut permitting times from Portland’s 413-day average to weeks; land and labor remain more competitive.
Diverse Demand Base: Employment in government, logistics, education, healthcare, and tech provides resilient rental demand across income tiers.
Policy Environment
Aggressive reforms—Senate Bill 974 mandating 90-day approvals, a $376M statewide housing bill, and the Housing Accountability and Production Office—are accelerating project feasibility. Local governments actively compete for development through expedited permitting, fee waivers, and density bonuses.
With permitting bottlenecks suppressing new supply in Portland, secondary cities represent the near-term engine of Oregon’s housing production. Stabilizing interest rates, moderating construction costs, and state-backed regulatory momentum create a window for early movers to capture durable rent growth and portfolio diversification.