Four floors and corner stores would make Portland’s inner neighborhoods even better.

Every Portlander needs a safe and affordable home. But Portland has a deep shortage of homes today: we have a deficit of over 9,300 homes, and we need to plan for 120,560 new homes by 2045. This will require 5,230 new homes annually, but in recent years Portland has built only about 1,000 new homes per year.

Our housing shortage dates back to the 1920s, when Portland used its first zoning code to restrict construction of apartment buildings in wealthy, white neighborhoods. This history of racist planning culminated in a 1981 zoning code change that banned apartment homes in almost all of inner Northeast and Southeast Portland. 

At Portland: Neighbors Welcome, we believe that Inner Eastside for All (IE4A) can address our housing shortage by once again allowing apartment buildings in our Inner Eastside neighborhoods. That’s why we envision apartment homes and  more neighborhood businesses in mid-rise buildings between 12th and 60th, and Powell and Fremont. Inner Eastside for All means more affordable, accessible, and family-sized homes for neighbors of all ages, wages, and stages of life.

The Path to More Homes

  • In 2022, Portland: Neighbors Welcome members asked a simple question: what if we legalized “four floors and corner stores” across all of Portland’s Inner Eastside? We proposed re-legalizing neighborhood apartments in this highly walkable area, which is well-served by transit and bike infrastructure and close to downtown, yet where most zoning allows only low-density homes.

  • In 2024, through volunteer-led community organizing Portland: Neighbors Welcome secured a commitment from the City of Portland to “Increase Housing Capacity in Inner Centers & Corridors” as part of its Housing Production Strategy. Since then, we have worked to ensure the city’s plan is consistent with our vision for an Inner Eastside for All.

  • In 2026, we successfully advocated for Resolution 37746 which was unanimously passed by the Portland City Council in August of 2026. The legislation directed Portland’s Bureau of Planning and Sustainability (BPS) to publish a report on a timeline, neighborhood benefits, and overall planning for these updates to the Inner Eastside neighborhoods.

  • In July of 2026, BPS released the Inner Eastside Status and Timeline Report. BPS found significant benefits to allow more homes in the Inner Eastside neighborhoods: 26,000 more homes for Portlanders to live in these neighborhoods; $500 million in new revenue over 20-years with $133 million going to Portland; and more. While Resolution 37746 directed a policy change by June of 2027, the report concluded winter of 2028. 

  • After the report, IE4A continued to organize and published a memorandum of our findings from the report. You can read our findings of the report to learn more. We began distributing this memorandum in September of 2026 to elevate the benefits of this effort and the opportunities to more readily achieve the outcome of more homes. Our community partners also joined us in sending a letter that calls for the Inner Eastside Zoning Project to continue on the legislatively defined timeline.

FAQ

Why the Inner Eastside?

Portland’s Inner Eastside is a great place to live: it has lots of parks, grocery stores, and transportation options, and Inner Eastside residents already drive less than Portlanders in other neighborhoods. Inner Eastside neighborhoods score lower on Portland’s Economic Vulnerability Index than other parts of the city, meaning that we’re less concerned about displacement here than in other neighborhoods. Taken together, these factors mean that the Inner Eastside is ready to welcome new neighbors.

Previous zoning changes, like Portland’s Residential Infill Project have had less effect in the Inner Eastside than they have in other parts of the city, suggesting we need to go further on zoning reform. Why is that?

  • When a developer buys a lot, they pay a large up-front cost for the land they are building on

  • If the land they are buying is more expensive, they must build more homes or build more expensive homes to compensate for that cost

  • Portland’s zoning limits the number of homes that can be built on residential lots, and the size of those homes

  • Taken together, that means that in places where land is expensive like the Inner Eastside our four-plex zoning code makes new development uneconomical 

Allowing larger buildings with more homes in neighborhoods like the Inner Eastside would make it possible for development to happen there without compromising on affordability.

 

Will this immediately change the Inner Eastside neighborhoods?

No, creating more homes will not be instantaneous. Adding more homes will be gradual over decades because new homes through zoning are not automatic or immediate.

 

How will the Inner Eastside change?

More homes through the Inner Eastside Zoning Project will mean a gradual transition over decades to four to six story buildings on more Inner Eastside lots. New homes will be in apartment buildings, but not high rises or skyscrapers.

We have also advocated for zoning and building code changes that will allow homes to be built on small lots, so that developers don’t have to assemble entire blocks to build large apartment buildings like they do in many cases today. These changes will allow for a greater diversity of housing choices where new buildings complement the existing homes that exist today in the Inner Eastside.

 

How will this impact parking and streets?

The Portland Bureau of Transportation (PBOT) will develop transportation strategies to support more homes and more neighbors that are described below. Notably, the Inner East Side is already transit-rich.

  • Parking management strategy: develop a multi-pronged parking strategy through new parking management districts, permit programs and event districts as appropriate.

  • Transportation Demand Management (TDM) programming: direct incentives and/or requirements implemented potentially in conjunction with parking management strategies (e.g., Transportation Wallet). 

  • Greenway network improvements: evaluate the greenway network and identify improvements for new riders that may include better infrastructure in existing greenways, such as safer crossings of busy corridors, or other treatments.

  • Transit investments: working closely with TriMet on potential new transit service, and a prioritization of transit projects or bus line upgrades. 

 

How does this address our local affordability crisis?

There is no one simple solution that will totally fix our affordability crisis. Adding housing has been shown to decrease rental prices and will need to be paired with other affordability measures to provide significant benefit. We advocate for a dedicated revenue stream for affordable housing, increased rental assistance, and social housing to best reach affordability.

 

Will this create displacement?

Increasing more homes does not automatically create displacement but can happen due to a myriad of factors. In the case of housing loss, the City of Portland’s Rental Services Office (RSO) does not enforce landlord-tenant laws. For example, if a person’s home is demolished without rental assistance that’s required by law, the onus is on the tenant for legal recourse. Though, most tenants will face financial and other barriers. We advocate for the RSO to do enforcement so tenants can actually be protected. Importantly, the Bureau of Planning and Sustainability found the Inner Eastside to include lesser displacement vulnerability. 

Love maps? Check out our IE4A Zine

What people are saying

“Allowing more housing types in an area where many single-family homes are already out of reach for many Portlanders.”
(Southeast Examiner, “Portland’s Inner Eastside Could See More Housing Under New Zoning Project” August 2026)

“A new/old way to solve the housing crisis we are faced with in the inner city.” (Southeast Examiner, “All Stages, Ages and Wages - Housing for the Eastside” February 2024)

“P:NW’s vision is to create more walkable neighborhoods with a mix of housing types (including some single-family homes) that are well-served by transit lines and bikeways where you can find bustling commercial centers, corner stores, and public spaces.” (BikePortland.org, November 2023)

Portland Should Allow Denser Multifamily Buildings through Inner Eastside, Housing Groups Say (Portland Tribune, October 2023)

Make Inner Eastside Residential Neighborhoods Three Stories Tall (Willamette Week, “Big Ideas to Save Portland,” January 2023)

This kind of win-win planning creates more opportunities for people of all incomes and also reduces climate pollution. Neighborhoods with four floors and corner stores are the ones with the shortest trips; the ridership and political support for abundant transit; and the affordable housing that opens these benefits to people of all incomes.

- Jacqui Treiger, Strategic Campaigns and Partnerships Director, Oregon Environmental Council

When zoning gives local residents and businesses the flexibility to invest in the neighborhoods they know best, communities and economies thrive. Re-legalizing four floors and corner stores would let Portland's unique inner neighborhoods incrementally grow and evolve gracefully based on the needs of the community.

- Victoria Via, Architect and Advocate for Strong Towns PDX

These are places where people can meet all their daily needs with good sidewalks and access to transit, all within walkable distances. Re-legalizing four floors and corner stores would be great for walking, great for the community, great for the environment, and, most importantly, great for people.

- Zachary Lauritzen, Interim Executive Director, Oregon Walks