City planning staff: 2024 saw above-average housing approvals and completions, with affordable units concentrated on the peninsula

Portland planning staff presented the city’s 2024 housing report to the Housing & Community Development Committee, saying the year produced strong activity in both approvals and completions and a notable share of deed-restricted units.

The report showed 464 new housing units were approved in 2024, of which staff said 269 — about 58% — were deed-restricted affordable to households at or below 100% of area median income (AMI). Zach Powell, senior planner, told the committee that "the majority at 85% are anticipated as rentals with the remaining 15% owner occupied," and that three projects account for roughly 40% of approved units.

Why it matters: The report gives elected officials a snapshot of how the local market is responding to municipal policy changes, including Recode zoning updates and the city’s inclusionary zoning (IZ) ordinance. Committee members used the briefing to press staff on the relative roles of subsidized housing, market development and IZ in producing affordable units.

Key findings and context

- Approvals and tenure: Staff reported 464 units approved in 2024; they said about 85% of approved units are expected to be rental and 15% owner-occupied. Powell said 269 approved units would be deed-restricted to households at or below 100% AMI. The largest approved project is near Woodford’s Corner at 186 Woodford Street.

- Completions: The city recorded 582 completed units in 2024, the second-highest tally in the past 14 years. Of those, staff said 169 completed units are deed-restricted affordable, representing roughly 29% of completed units over the 2010–2024 period.

- Geography and building type: Staff told the committee that around 60% of approved units and 80% of completed units are located on the peninsula (downtown and West End). Most completed units are in multifamily buildings and skew smaller (studios and one-bedrooms); smaller projects tend to have larger unit sizes.

- Affordability and IZ: Planning staff reported that 2024 marked the first time in 14 years when approved affordable units exceeded approved market-rate units. Of the 13 planning-board projects that year, four triggered inclusionary zoning compliance; those four would produce 25 on-site IZ units and contribute $577,067 in fees in lieu to the JLC DUSON Housing Trust Fund if constructed as approved. Committee members emphasized that, as Councilor Kate Sykes put it, "we’re not going to be able to rely on inclusionary zoning to build all of our affordable units," and staff agreed much affordable production has relied on subsidized projects and layered funding.

- ADUs and reuse: Powell reported that 96% of accessory dwelling units (ADUs) approved are off the peninsula and 89% involve reuse of an existing structure. Staff said a majority of market-rate completions were adaptive reuse while most affordable units were the result of new construction.

- State and county goals: Staff summarized the state’s 2021–2030 production goals for counties and noted that Cumberland County’s countywide goal is 18,830 units; if Portland maintained its 23.7% share of county housing, Portland’s proportional total would be 4,463 units. Powell said Portland had delivered 1,948 units since 2021 (about 44% of that proportional target) and projected about 4,307 units by 2030 at current trends (about 96.5% of the city’s proportional share).

Committee discussion and follow ups

Councilors questioned how much of the city’s affordable production is driven by inclusionary zoning versus subsidized projects. "Most of our affordable housing production is happening outside of the IZ framework," Councilor Sykes said; staff concurred and said subsidized projects, historic tax credits and TIFs have been critical to recent results. The committee also discussed the role of Recode (the zoning reform adopted by the council), possible density or height bonuses paired with IZ and the cost pressures from state building codes, labor and materials.

Staff next steps mentioned in the presentation include continuing to refine the city’s housing dashboard (updated quarterly), implementing two Housing Opportunity Program (HOP) grants (one to develop ADU outreach materials with GPCOG and one to evaluate the IZ ordinance), and producing developer guidance and a developers 101 packet to clarify application requirements and timelines.

Ending

Staff said they will return with more analysis as the inclusionary zoning study and other initiatives progress. Committee members asked for additional follow-up materials on where completed and approved affordable units are concentrated and on the drivers behind projects that are approved but not completed.