Oregon legislature passes HB 2138 mandating middle housing construction in small cities

Oregon's House Bill 2138, introduced on January 17, 2025, aims to tackle the state's housing crisis by mandating local governments to permit "middle housing" in various zones. This legislation seeks to increase the availability of affordable and accessible housing options, particularly in cities with populations of 1,000 or fewer, while excluding certain areas like Tillamook County.

The bill defines middle housing to include single-unit dwellings, duplexes, and accessory dwelling units, allowing existing homes to coexist with new developments. Local governments can regulate the siting and design of these units but cannot impose unreasonable costs or delays that could hinder development. Notably, the bill prohibits local authorities from requiring traffic impact analyses for middle housing projects, streamlining the approval process.

Debate surrounding HB 2138 has centered on its potential to alleviate housing shortages versus concerns about local control and the impact on community character. Proponents argue that the bill is essential for addressing the growing demand for affordable housing, especially for families earning 120% or less of the area median income. Critics, however, worry that it may lead to overdevelopment and strain existing infrastructure.

The implications of this bill are significant, as it could reshape Oregon's housing landscape by promoting denser, more diverse housing options. Experts suggest that if passed, HB 2138 could serve as a model for other states grappling with similar housing challenges, potentially influencing national housing policy discussions.

As the legislative process unfolds, stakeholders are closely monitoring the bill's progress, anticipating amendments and further debates that could shape its final form. The outcome of HB 2138 could have lasting effects on Oregon's housing market and the lives of its residents.