PORTLAND Ore. (KPTV) – The Portland metropolitan region is facing a “new reality” marked by job losses, a stalled housing market, and slowing population growth, according to a new analysis released by the Portland Metro Chamber.
In its 2026 State of the Economy report, the chamber said the region’s long-standing economic strengths, steady population inflows and relatively affordable housing, are no longer driving growth. Instead, Portland is underperforming much of the nation, even as the broader U.S. economy expands.
Unlike most of the country, Portland’s economy is contracting, the report states.
Jobs declining while nation grows
The chamber said the region lost 8,800 jobs in 2025, ranking it fourth-worst among U.S. metro areas. By contrast, national employment continued to grow.
Job losses were reported across nearly every major sector, including professional services, manufacturing, construction and information technology. Companies that sell goods and services outside the region also continued to shrink, according to the analysis.
Employment in Multnomah County, the region’s largest county, remains below pre-pandemic levels and is the biggest drag on overall job growth, the chamber said. That weakness, it added, makes it harder for the region to attract and keep residents.
Housing supply at 15-year low
The report also points to a deepening housing shortage, driven by a sharp decline in new construction and rising costs.
Only 656 multifamily housing units were permitted in 2025, the lowest total since 2011, according to the chamber. That compares with 868 permits in 2024 and more than 2,000 in 2023. The number of units under construction across the region has fallen from about 13,500 in 2022 to roughly 2,000 today, the analysis said.
Affordability has worsened even for middle-income households, the chamber said. At current mortgage rates near 6% households earning the regional median income of about $124,100 per year cannot afford a median-priced home with a 20% down payment, according to the report.
The chamber also noted a geographic shift in construction activity. Clark County now accounts for 57% of multifamily permits in the region, while Portland’s share has dropped to 29%, reversing the city’s historic role as the region’s housing leader.
Population growth slowing
Population growth is also faltering, the chamber said. Natural growth, births minus deaths, now accounts for just 0.1% of population change, down from 0.7% in 2000. The region records about 3,400 more births than deaths each year, compared with nearly 14,000 in 2001, according to the analysis.
Net outmigration has eased but remains a concern in much of the region, the chamber said, with growth now largely dependent on international migration. That reliance creates new uncertainty, the report said, given federal immigration policies that are outside local control.
Falling behind peer cities
The chamber’s analysis shows Portland slipping behind comparable metro areas such as Denver and Sacramento, which it said have surpassed pre-pandemic employment levels while continuing to add housing.
Portland’s standing in national real estate rankings has also fallen sharply, the chamber said, dropping from third place in 2017 to 80th in 2026, second-worst among major U.S. markets, behind Hartford, Connecticut.
Call for action
The chamber said the region can no longer rely on low costs or population inflows to fuel growth and must take “decisive action” to reverse job losses, rebuild housing supply and adapt to slower, more uncertain population growth.
City/state leaders’ efforts
City and state leaders have made some moves to try and improve Portland and Oregon’s economic conditions in recent months.
Last week, the Oregon Senate president introduced a framework to renovate the Moda Center, which some lawmakers argue is an economic engine for Portland supporting thousands of jobs.Last summer, Travel Oregon awarded nearly $6.2M to dozens of groundbreaking projects across the state.Earlier this month, City Councilor Eric Zimmerman and Mayor Keith Wilson were supporting an effort to increase Portland’s business tax exemption.Mayor Wilson has also been working to rehabilitate and find shelter for people experiencing homelessness.Last summer, Oregon Governor Tina Kotek signed five bills in an effort to address the state’s housing shortage.
“The trends outlined in this year’s State of the Economy report point to a region with economic indicators flashing clear warnings,” the report said. “Portland’s next chapter will depend on whether leaders can respond with the urgency, coordination, and clarity needed to restore confidence, expand housing and employment opportunities, and reposition the region for durable growth.”
Read the full report on the Portland Metro Chamber’s website.
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