Portland Slips Behind Other U.S. Cities as Report Shows Slowing Population Growth, Job Losses and Record Vacancies
The Portland Metro Chamber’s annual State of the Economy and State of Downtown & the Central City reports, released on Thursday, reflect a city facing significant challenges that have shown up in financial forecasts.
Portland’s State Of The Economy
New reports suggest that Portland’s economy and downtown are at a crossroads in 2026. The State of the Economy and State of Downtown & the Central City reports- produced by ECOnorthwest and presented by Bank of America and Downtown Portland Clean & Safe- paint a sobering picture of the region’s economic trajectory.
Structural weaknesses and declining confidence has led to urgent calls for coordinated action.
Source: Portland Metro Chamber / 2026 State of the Economy (ECOnorthwest)
Dailytidings.com
Portland’s economy- once an outperformer nationally- is now lagging. Outmigration has slowed, as natural population growth has nearly stalled, leaving future demographic expansion reliant on international migration.
Similarly, employment contracted by 8,800 jobs in 2025, ranking Portland among the worst-performing metro regions.
Housing production has plummeted, with only 656 multifamily units in the pipeline- the lowest since 2011- while affordability remains elusive for many Portlanders.
This is what the Chamber reports show for multifamily permitting and the construction pipeline:
| Indicator | Peak prior level | 2024 | 2025 |
|---|---|---|---|
| Portland new multifamily units issued | 2,092 (2023) | 868 | 656 |
| Units under construction / Portland | About 8,000 (2018) | n/a | About 300 |
| Units under construction / 4 county region | About 13,500 (2022) | n/a | About 2,000 |
| Share of regional multifamily permits / Portland | n/a | 29% | 29% |
| Share of regional multifamily permits / Clark County | n/a | 57% | 57% |
In addition, exports fell sharply, dropping from $10 billion in late 2024 to $6.4 billion quarterly in 2025. Real estate’s charm is also near the bottom nationally, ranking 80th out of major metros.
Underscoring a broader erosion of economic confidence, the Chamber’s State of the Electorate survey also revealed Portlanders’ deep uncertainty about their financial future, reinforcing the urgency of intervention.
Andrew Hoan, President and CEO of the Portland Metro Chamber, warned that, without decisive change, Portland risks ongoing economic contraction, business flight, and strained public services.
He urged a competitive mindset and stressed the need for public-private partnerships focused on attracting investment, expanding affordable housing, and creating jobs.
The reports also highlight downtown Portland’s pivotal role in the regional economy. Office leasing has contracted to record lows, while vacancies have surged to 10.2 million square feet—the highest ever.
Source: Portland Metro Chamber / 2026 State of Downtown and 2025 Downtown Foot Traffic Report
Dailytidings.com
As hybrid work patterns become more popular, the shift away from traditional office demand continues, yet foot traffic counts are more positive.
In 2025, over 32 million pedestrians visited downtown- a 5.5% increase from 2024. Saturdays have rebounded to nearly 90% of pre-pandemic levels, and summer 2025 was the busiest since before COVID-19.
Downtown Portland Property Values Shrink, Affecting Rates Shortfalls
In Multnomah County, declining downtown commercial property values are also shrinking property tax revenue, helping create the $15.5 million General Fund shortfall in the county’s FY 2026 budget.
The county indicated that declining commercial real estate values were a significant factor in the deficit. At the same time, the real market value of the top 20 downtown Portland commercial properties fell by 42% to 74% in recent years.