Portland Remains Least Desirable Real Estate Market in U.S., New Report Shows
Portland, Oregon, continues to be the least favored city for real estate investment among 81 major U.S. markets, according to a new report released today, raising concerns about the city’s economic recovery.
The Urban Land Institute (ULI) and accounting firm PwC’s annual Emerging Trends in Real Estate report ranked Portland 80th overall for real estate prospects across all property types, a position it has held for the second consecutive year, beating only Hartford, Connecticut. The survey, which polled over 1,200 industry professionals, assessed cities based on their development and investment potential for 2026. Despite ranking 30th for homebuilding prospects – unchanged from the prior year – the overall outlook remains bleak.
Governor Tina Kotek and Portland Mayor Keith Wilson have actively sought to attract investors amid a significant slump in housing construction, recently meeting with real estate leaders to discuss revitalization strategies. Participants in that September meeting emphasized the need for job growth and rising incomes to incentivize investment. While household incomes have increased in the Portland metro area – exceeding $100,000 in Washington and Clackamas counties in 2023, according to U.S. Census Bureau data – Multnomah County lags behind at around $83,000, and its growth is slower, a worrying trend for the city’s core. The city’s struggles with attracting residents since the pandemic, coupled with a 33% office vacancy rate reported by CBRE, are contributing factors. You can learn more about the challenges facing downtown Portland here.
Local economist Mike Wilkerson expressed disappointment with the results, stating, “That’s the most influential indicator at this time.” He noted the difficulty of changing the national perception of Portland when it remains “stuck at the bottom,” creating a self-reinforcing cycle. Despite recent sales of downtown skyscrapers at discounted prices, the report doesn’t reflect that progress, and “you need some positive momentum to get you out of dead last,” Wilkerson added.
Officials say they will continue working to address the concerns of investors and developers and to create a more favorable environment for real estate investment in Portland.
