Portland’s Central City is Oregon’s urban center, with the densest population of people and jobs in the state. People from across the country are drawn to the Central City’s mix of urban vitality, compelling public spaces, innovative employment opportunities, rich transportation network, signature cultural amenities — and its connection to the Willamette River. It stretches from the West Hills to SE 12th Avenue, and from the Lloyd and Pearl districts to Powell Boulevard and South Waterfront, as shown in the map below. Distinct from the Central Eastside, all the highlighted neighborhoods on the map below collectively form the Central City.    

Even though the Central City is a small part of the greater Portland area (only 3%), it's planned to have a big impact: by 2045, it's expected to hold about 25% of the city's new homes and jobs. Portland is experiencing a widening gap between the diverse housing needs of its residents and the city's ability to meet those needs, particularly in the Central City. This data provides insight into the trend of housing production (including housing units being built, completed, or where permits have been issued). 

This graph shows the number of new housing units constructed - meaning each project has been completed, all mandatory inspections have been approved, and the permit has been officially closed in the City's permitting system. For fiscal year (FY) 2025-26, 622 units constructed and approved, representing a 2% (12 units) decrease from FY 2024-2025 and an approximately 29% decline from the peak of 881 units in FY 2023-2024. 

Several factors may have contributed to this decrease in housing production, including:

• Financial challenges: Interest rates and challenges securing funding for development projects.
• Economic development and uncertainty: Portland isn't seeing as much new construction as it could. Developers are choosing to build in other cities. 
• Construction Market: New construction remains expensive, making existing buildings a more attractive option. 

Meeting the need for new housing is top priority to ensure Portland remains an affordable and accessible place to live. To address the current shortfall in housing production, we continue to focus on streamlining processes to reduce delays and make it easier for projects to reach completion. 

In July 2025, the Portland City Council adopted an ordinance that temporarily exempts newly created housing units from System Development Charges (SDCs). The goal of this ordinance is to promote the creation of 5,000 new housing units over a three-year period. 

Learn more about the Central City and upcoming planning work. 

Learn more about the temporary system development charge exemption program.

Learn more about the Portland Central City Roundtable, a cross‑sector leadership group convened by Mayor Keith Wilson to align civic and business leaders around implementation of the “All In on Central City” vision, coordinate key downtown projects, and track progress on the district’s long‑term recovery and vitality. 

For instructions on applying for a residential or commercial permit, visit the Apply for permits webpage. Not sure if you need a permit? Visit the Do you need a permit? webpage.