Portland Residential Infilll Project - what are your thoughts?

Question

Hey everybody,

on 12 August PDX City Council adopted the Residential Infill Project, a massive re-zoning exercise for Portland. It opens up Portland's residential heighborhoods to housing types other than SFRs and more ADUs or DADUs on plots with existing SFRs. The adoption of the Residential Infill Project must now be acknowledged by the State and implementation is expected in 2021.

https://www.portland.gov/bps/rip/news/2020/8/12/portland-city-council-adopts-residential-infill-project

Obviously this is a big deal. Rezoning allows for more units, either through converting a SFR into a -plex and/or add ADU or DADU on the land. Lot sizes now become more important since you can actually do something with the land. It looks to me like a step in the right direction, a try to mitigate the pressure on the housing market in Portland. At the same time, it opens up opportunities for investment while being a tool to provide affordable living in the city. Potentially a lot of winners in this, no?

BUT - I have to admit - I have no clarity about the scale of change so far. Is this only happening on a few selected blocks in the city? Or are changes applied throughout Portland? Removal of 'a' overlay zones seems to be widespread, whereas proposals for change from R5 to R2.5 seems more spotty.

Anybody got clarity on upcoming changes or thoughts in general on the Infill Project?

Thank you and best wishes,

Nikolas

Account Closed · Answer

What Portland can "give" in one year, it can "take" the next. They are erratic. I use the Portland riots as an example. Portland used to be a wonderful city. The mayor and city council have proven that you need a premium reward to justify the third world risks.

Jeff S. · Answer

Vacancy since March 15 new rehab staying vacant in Portland city limits. Time for an owner to appreciate, neighbors want that too.

Jay Hinrichs · Answer

I have a few properties being bought form us now in Portland and the buyers are relying on this pretty heavily.. they feel they will be able to put 4 plexs on newly created or lots they are confirming or tear down etc..  Although doing anything in Portlandia for us little guys is maddening the amount of time and BS you have to go through.. and total lack of who is on first down there at city hall..

But like all things those who want to go through the pain to work in PDX in my mind are going to find less competition I know a lot of builder developers are leaving this jurisdiction just feed up with the city that CANT.. LOL.. I mean there is going to be some serious issues where those that rely on HML to do these deals and sign up for short term money are going to run long and the HML is going to be the only one who will make out..   Any way I digress..   Signed:    Frustrated in PDX.

Chris Shepard · Answer

As a property owner who owns about 30 units in Portland, I think this is great.  Although I agree with @Steve Morris about how the process can be slowed down massively by neighbors... or anyone really.  But as with anything that comes to being a long term real estate investor time will work in our favor, neighbors will come and go and the “new rules” will become the status quo.

I do think there is a huge opportunity to add ADU type units to properties with land and that is a much easier process.

Brad Hammond · Answer

I have been watching this but haven't seen any details.  I think there could be some great opportunities to convert a SFH into a duplex.  I don't think it will be as widespread as some people think because the lot would still need to be at least 5,000sf to put in a second unit.

Steve Morris · Answer

Anybody got clarity on upcoming changes or thoughts in general on the Infill Project?

My sense is that they removed the SFR requirement as a stopper on building lots.

However, Portland being Portland, you only need one resident (not even an owner) to tie your project up in knots for an extended period.  So am not seeing it make any real difference outside of being able to build more in already-crowded neighborhoods.