Governor Kotek and the State of Oregon Take Bold Steps Toward More Affordable Housing

Oregon needs to build 36,000 new homes annually to meet the growing demand for housing, but last year, only 14,000 permits were issued, and they were mostly for single-family homes. The shortage has led to skyrocketing rents, a growing unhoused population, and a median home price topping half a million dollars statewide. In fast-growing areas like Bend, the affordability crunch is particularly acute.

Governor Kotek, recognizing this crisis, signed five new laws this week that address everything from zoning reform and modular housing to infrastructure financing and streamlined building processes.

What the New Laws Do

Oregon’s new housing laws are designed to make it faster, easier, and more affordable to build the kinds of homes our communities need—especially in high-demand areas like Bend.

House Bill 2138, Legalizing Middle Housing, ensures that cities can no longer limit housing to just single-family homes. That means more duplexes, townhomes, and other affordable options in neighborhoods across Central Oregon.

Here are some of the specific benefits of the other bills:

  • Faster building process. The state will provide ready-to-use building plans, helping builders cut through red tape and get homes on the ground quicker.
  • Help with infrastructure. Local governments will get funding to build essential infrastructure—like roads and water systems—so that new housing projects don’t get stuck before they start.
  • Affordable financing for developers. The state is making it easier for builders to access low-interest loans, making affordable housing projects more feasible.
  • Support for modular homes. Oregon is investing in factory-built housing that’s faster and cheaper to produce, helping meet urgent demand without long delays.

Together, these changes aim to lower costs, boost supply, and create more housing choices—helping families in Central Oregon and beyond find a place to call home.

Governor Kotek’s message was clear: this is just the beginning. “Today’s not a victory lap,” she said. “We have a lot to do.”

More about The Foundation for Affordable Housing

For over 30 years, The Foundation for Affordable Housing (FFAH) has been helping to build and manage hundreds of affordable housing communities accounting for thousands of homes.

Founded by Tom and Deborrah Willard, our organization is a tax-exempt 501(c)(3) public benefit nonprofit corporation. Read more about FFAH here.