Portland Metro faces economic decline with rising homelessness and population changes

In a recent meeting of the Oregon Senate Committee on Labor and Business, significant discussions highlighted the economic challenges facing the Portland Metro Region. The meeting, held on April 22, 2025, focused on the region's economic performance, quality of life issues, and the impact of population dynamics on growth.

The committee's discussions began with an analysis of the region's economic trajectory, which has shifted dramatically since the decade of growth prior to the pandemic. In 2010, the Portland Metro had one of the highest median household incomes in the U.S., ranking 17th nationally. However, recent trends indicate a decline in economic performance, with the region now struggling to recover from the pandemic's effects. Factors such as homelessness, public safety concerns, and drug use have contributed to a negative perception of quality of life, which was exacerbated during the pandemic.

The meeting underscored that while quality of life improvements are necessary, they are not sufficient on their own to restore economic growth. The committee identified three key issues affecting the region: structural changes in the economy, an overreliance on population growth as a development strategy, and well-intentioned policies that have led to unintended consequences.

Population dynamics were a central theme, with the committee noting a decline in domestic migration and a concerning demographic shift towards an aging population. The region's job growth has lagged behind national averages, and housing production has significantly slowed, leading to increased pressure on rents and affordability. The committee highlighted that the construction industry is facing challenges, with permitting levels at their lowest in over a decade.

The discussions also revealed a stark contrast between the performance of Multnomah County and neighboring Clark County in Washington State. While Clark County continues to attract residents and jobs, Multnomah County is experiencing significant declines in both areas. This disparity raises concerns about the long-term economic viability of the Portland Metro Region.

As the meeting concluded, committee members acknowledged the urgent need for a comprehensive approach to address these challenges. The discussions emphasized that without strategic interventions, the region risks further economic stagnation and a decline in quality of life for its residents. The committee plans to continue exploring these issues in future meetings, aiming to develop actionable solutions to foster sustainable growth and improve the overall economic landscape of the Portland Metro Region.