More and More ADUs Are Popping Up in Portland

In Portland, Oregon a housing state of emergency has been in effect since 2015. To address it, the city has created one of the most accessory dwelling unit-friendly policies in the nation.

In 2010, Portland waived impact fees for developers building ADUs, and then renewed the waiver in 2016, making the cost much more affordable for homeowners. CityLab reports that there are roughly 2,000 ADUs completed in the city on less than two percent of home lots, which is the most in the U.S. Writer Laura Bliss adds, "as many as 116,644 properties, nearly half of taxable lots, could be 'ADU friendly,' according to an analysis done by Portland State University."

There is hope on the horizon. Builders have been aggressively adding apartments, with the city permitting between 3,000 and 4,000 new units in both 2015 and 2016. As more supply comes online to meet demand, “the balance of power in the rental marketplace will shift from sellers to buyers,” wrote the Portland-based urban economist and writer Joe Cortright for City Observatory in November.

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