Oregon legislature sets new housing regulations to promote middle housing development

Oregon House Bill 2138, introduced on January 13, 2025, aims to enhance the development of middle housing across the state by allowing local governments to increase the number of dwelling units on eligible lots. The bill seeks to address the ongoing housing crisis in Oregon by promoting affordable homeownership options and increasing housing density in urban areas.

Key provisions of HB 2138 include the allowance for cities to develop additional attached or detached dwelling units on lots designated for middle housing, provided that at least one unit is an accessible or affordable homeownership unit. Specifically, the bill permits one additional unit for duplexes and triplexes, and up to two additional units for townhouses, quadplexes, or cottage clusters. This initiative is designed to facilitate the construction of more affordable housing options while adhering to existing land use regulations.

The bill has sparked notable discussions among lawmakers and community stakeholders. Proponents argue that it is a necessary step to combat the housing shortage and promote inclusivity in homeownership. Critics, however, express concerns about potential overdevelopment and the strain on local infrastructure. Amendments to the bill have been proposed to address these concerns, including provisions for local governments to assess their capacity for additional housing and to consider infrastructure improvements.

Economically, HB 2138 could stimulate growth in the construction sector and provide a boost to local economies by increasing the availability of affordable housing. Socially, it aims to create more equitable housing opportunities for low- and middle-income families, potentially reducing homelessness and housing instability in the state.

As the bill progresses through the legislative process, its implications for housing policy in Oregon remain significant. Experts suggest that if passed, HB 2138 could serve as a model for other states grappling with similar housing challenges, potentially reshaping the landscape of urban development and community planning in Oregon and beyond. The next steps will involve further debates and potential revisions as lawmakers seek to balance the need for increased housing with community concerns.