High housing costs and job losses continue to drag down Portland’s economy

Portland’s economy is not working for the majority of residents and businesses.

Housing is too expensive. Companies are shrinking their presence in the city. Job numbers are going down. And the city’s most promising indicator of growth can’t be relied upon in today’s political climate: international in-migration.

Those are some of the findings from ECOnorthwest, a research and consulting firm headquartered in Portland. The city’s business advocacy group, Portland Metro Chamber, partners each year with the firm to research and analyze economic indicators in the region.

In the latest report released Thursday, economists at ECOnorthwest looked at population, housing affordability and jobs to gauge the health of Portland’s economy.

They found that in 2025, those indicators showed an economy nearing a crisis.

The region has shed nearly 9,000 jobs in the last year, the fourth worst for metro regions in the country. Births still outpace deaths in the region, but that number is getting smaller. Fewer permits are being issued for new multifamily homes.

“Under the status quo, we will continue seeing economic decline, business flight, and strained funding for public services,” Andrew Hoan, president of the Portland Metro Chamber, said in a statement.

High housing costs and the shocking number of people experiencing homelessness continue to plague the Portland region. Voters consistently say homelessness and the cost of living are the biggest issues facing the city. And experts say lack of affordable housing is the main contributor to Oregon’s homelessness crisis.

Report authors found that in 2025, only 656 multifamily housing units were planned in the Portland metro area, according to permits issued. That’s down from 2024 when just over 850 units were in process, and an even bigger decline from 2023 when builders planned more than 2,000 units.

Overall, the report authors conclude that the economic indicators are “flashing clear warnings” in the region.

“Slower population growth, job recovery concentrated in SW Washington, declining competitiveness in traded-sector industries, and a sharply constrained housing pipeline together represent more than a cyclical slowdown,” the authors wrote, “They signal structural challenges that will shape Portland’s trajectory for years to come.”