The Confederated Tribes of Grand Ronde’s $15.25 million 2019 acquisition of the contaminated former Blue Heron mill site at Willamette Falls exemplifies investment value and value-in-use, enabling a highest and best use shift stalled under prior ownership.
Willamette Falls in full cascade, with the former Blue Heron Paper Mill site in the midground. The dramatic natural setting contrasts sharply with decades of industrial obsolescence on the ~22-acre riverfront parcel. Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)
The former Blue Heron Paper Mill site at Willamette Falls in Oregon City has long exemplified the valuation challenges posed by contaminated industrial brownfields. After the mill’s 2011 closure and subsequent bankruptcy, the ~22-acre riverfront parcel endured years of vacancy, burdened by functional obsolescence, deferred maintenance, and significant environmental liabilities that deterred conventional market participants.
In August 2019, the Confederated Tribes of Grand Ronde acquired the property for a recorded $15.25 million. This transaction stands out for appraisers as a clear illustration of investment value—the worth of a property to a particular purchaser based on individual motivations—and value-in-use, where non-economic factors such as cultural and ancestral significance justify a substantial premium over typical market indicators.
Panoramic view of the former Blue Heron mill complex along the Willamette River, with falls mist visible on the left. The sprawling structures illustrate extensive functional and external obsolescence following more than a decade of vacancy. Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)
Site History and Market Perception
The property’s ownership and valuation history underscores the stagnation under conventional private ownership:
Year
Event
Recorded Price / RMV
2000
Acquired by Blue Heron Paper Company from Smurfit Newsprint Corp.
$2.5 million
2011
Mill closure and Chapter 11 bankruptcy filing
—
2014
Bankruptcy court sale to private developer (Falls Legacy LLC)
Clackamas County Real Market Value (post-acquisition)
~$3.6–$4.3 million (land-focused)
2021–2024
Phased demolition and remediation (approximately 40% of structures removed by 2024)
—
Recent
Oregon City master plan approval (GLUA240002)
—
Key ownership and valuation milestones for the ~22-acre former Blue Heron mill site, derived from Clackamas County public records and contemporaneous reporting. The lack of nominal appreciation from 2000 to 2014, followed by the substantial premium in 2019, highlights the impact of buyer-specific motivations.
Foreground view across derelict waterfront infrastructure at the former Blue Heron site, framed by graffiti-covered rail elements. The image captures visible signs of prolonged obsolescence and inaccessibility. Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)Detailed view of cracked concrete pads and obsolete industrial remnants in the site’s foreground basin area. Such conditions exemplify brownfield liabilities common in post-industrial valuation. Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)
Appraisal Implications—Investment Value and Value-in-Use
The $15.25 million purchase price—nearly seven times the 2014 bankruptcy sale and well above the assessor’s reported Real Market Value immediately preceding the transaction—reflects investment value driven by the Tribe’s profound cultural connection to Willamette Falls, a sacred ancestral homeland and traditional fishing ground. This non-economic value-in-use enabled the Tribe to overcome remediation and holding-cost barriers that had stalled private redevelopment efforts for years.
Appraisers reconciling such sales must distinguish investment value (or value-in-use) from market value derived from arms-length transactions among typical participants. Limited comparable sales for culturally significant or heavily contaminated riverfront parcels often require significant adjustments for buyer motivation, extraordinary assumptions regarding cleanup feasibility, and bracketing with more conventional industrial land comps.
This situation parallels a more recent Portland case explored on this blog: the 1803 Fund’s adaptive reuse plans for historic grain silos along the Willamette River. In both instances, a buyer with specific motivation recognized potential in a functionally obsolete industrial asset that had deterred conventional market participants—ultimately enabling a highest and best use shift through targeted redevelopment.
Intimate perspective on remaining mill buildings, showing moss-covered roofs, rust, broken windows, and heavy graffiti—clear evidence of functional obsolescence after years of vacancy. Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)
Current Progress and the Tumwata Village Vision
Recent site visits confirm active transformation: demolition equipment, including excavators, is visibly engaged in clearing remaining structures.
Phased demolition began in 2021, with multiple rounds completed by 2024 removing approximately 40% of the former mill buildings. Remediation continues in coordination with state and federal environmental agencies.
A major fire in January 2025 destroyed one of the larger remaining buildings on the site (the former mill’s three-story structure). The incident, ruled arson and unrelated to demolition activities, did not delay the overall redevelopment timeline. Progress has continued steadily, as evidenced by recent infrastructure planning and the current state of the property.
Renamed Tumwata Village, the redevelopment proposes a mixed‑use cultural district that weaves together public access trails, ecological restoration of the riverbank and lagoon, tribal gathering spaces, and a modest mix of commercial and hospitality uses—all grounded in the site’s ancestral significance. By prioritizing riverfront restoration and new trail connections, the plan could open up rare land‑based vantage points of Willamette Falls, a natural landmark that today is mostly viewed from commercial boat tours or distant overlooks. If fully realized, the transformation would support the Confederated Tribes of Grand Ronde in cultural reclamation and long‑term stewardship, while giving Oregon City and the broader public renewed access to a stretch of the falls long closed off by industrial operations.
Oregon City’s recent approval of the master plan (GLUA240002) formalizes this highest and best use shift from interim speculative hold to culturally driven redevelopment.
Readers interested in detailed conceptual plans and site renderings can review the Tribe’s 2022 design report.
Mid-demolition scene at the site, with construction equipment including an excavator and partially cleared areas visible. Ongoing remediation phases demonstrate the reversal of obsolescence through active transformation. Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)Clackamas County GIS overview of the ~22-acre former Blue Heron mill site (red outline), illustrating its extensive Willamette River frontage and proximity to the falls. The contiguous parcel configuration supports comprehensive redevelopment potential. Source: Clackamas County Maps.
Takeaway
The Tumwata Village acquisition serves as a compelling case study in investment value and value-in-use. When a purchaser’s motivations—here rooted in cultural reclamation—align with a property’s unique attributes, transaction prices can far exceed indicators derived from conventional market behavior. Appraisers must remain alert to these distinctions, employing careful reconciliation techniques and appropriate adjustments when comparable data is limited.
Ultimately, the project illustrates how buyer-specific utility can reverse long-standing obsolescence, shifting a site’s highest and best use in ways the open market alone could not achieve. If realized, the vision promises not only tribal stewardship of ancestral lands but also broader public access to one of Oregon’s most iconic natural features—offering land-based and proximate views of Willamette Falls where few currently exist.
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
The final full week of 2025 sharpened focus on the deep affordability barriers defining the Portland Region’s housing market, while also spotlighting regulatory and tax issues with real consequences for homeowners—especially veterans. A closer look at the 2024 MAV Reset Clarification revealed how the loss of a disabled veteran exemption can trigger a permanent upward reset in maximum assessed value, locking in higher property taxes even if the exemption is later restored. Meanwhile, groundbreaking on a major apartment project pushed forward despite tight financing, and fresh Q3 data underscored why most first-time buyers must now wait until age 40 to enter the detached single-family market.
That Q3 analysis, powered by the new Portland Appraisal Blog Affordability Index(PABAI), showed that fewer than 10% of recent detached sales were realistically within reach for households aged 25–44 once full PITI costs are considered. A separate deep dive into today’s typical $600,000 home purchase laid out the household income actually required—far above median levels for younger buyers. Together, these pieces highlight a region where entry-level detached ownership remains elusive without substantial down-payment help, outlier earnings, or delayed timelines.
At the same time, multifamily development continues as one of the brighter spots, with projects like the Barbur Apartments aiming to deliver more rental options amid high construction costs and steep financing hurdles. These efforts reflect broader attempts to ease the overall supply crunch, even as single-family affordability stays structurally constrained.
Sunday, December 21: Barbur Apartments Groundbreaking Highlights Plottage Value
The Barbur Apartments site sits at the prominent intersection of SW Barbur Blvd and SW Capitol Hill Rd. Photo: Portland Appraisal Blog
Groundbreaking commenced in mid-December 2025 on the Barbur Apartments, a 150-unit affordable family housing project located at the corner of SW Barbur Blvd and SW Capitol Hill Rd in Portland’s Hillsdale/Multnomah Village area. Developed by Innovative Housing, Inc., the complex will feature one three-story building and two four-story buildings, delivering 149 income-restricted units (one reserved for an onsite manager) with many larger two- to four-bedroom layouts targeted at immigrant and refugee families. Amenities include a courtyard and community spaces, with completion expected in Fall 2027.
The project carries an estimated total development cost of approximately $79.4 million, supported by about $27.3 million from the Portland Housing Bureau alongside regional Metro Housing Bond funds, federal sources, and Portland Clean Energy Community Benefits Fund contributions for energy efficiency. It emphasizes transit access along the Barbur corridor, with approved plans providing roughly 45 on-site parking spaces—a ratio of about 0.3 spaces per unit reflecting the transit-oriented design.
From an appraisal perspective, the redevelopment exemplifies plottage, the incremental value gained by assembling contiguous parcels into a larger, more developable site. Four tax lots totaling around 2.19 acres were purchased together in February 2025 for just under $6 million. Individually constrained by size, zoning, and existing improvements, the parcels supported only lower-intensity uses.
One parcel formerly held a 1927-built single-family home of approximately 2,336 square feet that was never listed on the open market and quickly demolished, demonstrating clear functional obsolescence as the corridor evolves. An adjacent former commercial strip—Barbur Blvd Rentals—remains standing but fenced within the construction zone. Together, these lots enable a density and scale unattainable separately, illustrating classic plottage and a shift to higher-density residential as the highest and best use.
Directly across Barbur Blvd sits a large Safeway complex with extensive covered and surface parking, a significant amenity for future residents. However, with the project’s limited on-site parking space and family-oriented unit mix, residents and guests may increasingly rely on this private lot for overflow. A mid-morning site visit revealed a nearly full garage, suggesting potential increased daytime use once occupied—a dynamic worth monitoring.
Local market data from 2024–2025 closed sales in Hillsdale and Multnomah Village underscores limited affordability. Detached homes led with 351 sales averaging $750,000 and 50 days on market. Condominiums, the most accessible ownership segment by volume, averaged $445,000 across 78 sales with longer 68-day absorption. Attached homes, a small segment of just 13 transactions, averaged $581,000—likely due to more recent construction (average year built 2010) and associated premiums. Overall averages reached $691,000, highlighting ownership barriers and the critical role of regulated rentals like Barbur Apartments for lower-income and larger households.
This assemblage aligns with broader city efforts to expand housing through density and public investment, including recent regulatory reforms aimed at reviving Portland development.
Tuesday, December 23: The Measure 50 Compression Trap and the 2024 MAV Reset Clarification
A classic pre-1940 home in the Portland Region – the type of property often benefiting from deep Measure 50 tax compression. Photo: Abdur Abdul-Malik, Portland Appraisal Blog
In Oregon’s property tax system, established by Measure 50 in 1997, a common pitfall has emerged for buyers of older homes: unexpectedly high tax bills following the loss of certain partial exemptions. This occurs when a veteran or active-duty partial exemption ends—often upon sale or the owner’s passing without a qualifying successor—triggering a reset of the property’s Maximum Assessed Value (MAV) closer to current market reality. Previously, counties preserved the low MAV after removing the exemption, but updated 2024 guidance from the Oregon Department of Revenue now enforces a constitutional recalculation, potentially adding $2,000–$6,000 annually to taxes for pre-1997 properties with deep compression.
Measure 50 created two key values: Real Market Value (RMV), reflecting current market conditions, and MAV, initially set below 1995–1997 RMV and capped at 3% annual growth thereafter (with exceptions). The Assessed Value (AV) is the lesser of the two, leading to substantial compression in high-appreciation areas like Portland, where older homes often have MAV far below RMV. When a partial exemption disqualifies, the new guidance applies the Changed Property Ratio (CPR)—around 0.54 for residential properties in Portland Region counties for 2025–2026—to reset MAV to current RMV multiplied by CPR, aligning taxes more closely with newer homes.
Q3 2025 sales data for detached single-family residences in the Portland Region highlights this compression. Pre-1940 homes averaged $671,295 in sale price but only $6,396 in annual taxes, while 1940–1959 properties averaged $607,466 with $5,766 in taxes. In contrast, 2000–2019 homes averaged $761,061 with $7,685 in taxes. Effective tax burdens remained consistent at ~$9–$10 per $1,000 of sale price across eras, showing the market prices properties assuming similar overall loads. However, absolute taxes rise with newer construction due to less historical compression, and pre-1940 homes often command premiums despite lower taxes—creating vulnerability when resets occur.
The veteran (ORS 307.250) and active-duty (ORS 307.286) exemptions provide modest reductions—up to $31,565 or $108,366 for 2025–2026, worth $400–$700 annually in savings—but their disqualification now triggers the full MAV reset. With over 114,000 veterans in the metro area, affected transactions can see increases of $1,500–$4,000 yearly in typical cases, or $4,000+ in deeper-compression scenarios. This translates to $125–$333 monthly, comparable to a car payment, potentially straining affordability and prompting renegotiations.
For market participants, the reset introduces friction: buyers may demand concessions, sellers (including veterans or surviving spouses) face lower net proceeds, and properties can linger on the market if low current taxes mask future costs. Outliers with unusually low taxes may reflect active exemptions or compression soon to erode.
Appraisers should verify exemption status via county records, estimate post-reset taxes, and comment on marketability when material. Low-tax comparables warrant scrutiny—effective rates of 0.6–0.8% may signal compression, better aligned post-reset at 1.1–1.3%. Providing dual tax scenarios aids informed valuation. As resets appear in more closed sales from 2026 onward, this factor will increasingly explain pricing anomalies in Oregon’s older housing stock.
Thursday, December 25: Portland’s Starter Home Market (Q3 2025) — What $469k Really Buys
A classic early-20th-century bungalow in the Portland area—the type of modest, well-loved home that dominates today’s starter-tier inventory. Via Canva Pro
In another Appraisal Deep Dive, we examine Portland’s starter-home market using Q3 2025 RMLS data for detached single-family residences in the 5th–35th percentile by price—the same convention Redfin used in its October report highlighting Portland’s strong starter activity.
Redfin’s reported median of approximately $420,000 includes all property types, but focusing solely on detached homes—a popular choice across the metro, including for urban buyers seeking yard space and privacy—yields an average close price of $469,000. Local buyers want to know how much home this budget actually buys, and the data reveals a market overwhelmingly dominated by mid-century inventory, with stark county differences and only a modest presence of brand-new construction.
Across the core counties, Multnomah drives nearly half the volume with the oldest average build year (1951), while Washington posts the highest prices and hosts the most new homes. Outer counties like Columbia and Yamhill offer newer builds on larger parcels but far fewer sales. Square footage emerges as one of the stronger (though still modest) drivers of price, with most sales clustering between 1,200 and 2,000 square feet. Lot size patterns show a clear historical shift: post-war boom homes (1940s–1950s) typically enjoy generous parcels, while newer construction relies on much smaller lots—often the result of infill and divisions.
New homes account for just 4.2% of starter-tier sales (versus 9.1% market-wide), yet their presence remains noteworthy in a high-cost building environment. They sell for only about 3% more than existing homes despite brand-new condition but deliver less interior space and roughly half the land. For buyers, this creates a clear trade-off: modern efficiency and low maintenance on a very small lot (often minimal usable yard, especially in Multnomah and Washington) versus an older mid-century home with significantly more outdoor space, albeit with potential challenges in systems and layout—a choice particularly relevant for growing families prioritizing play areas or privacy.
Appraisal insights reveal that chronological age correlates weakly with both sales price and price per square foot. Effective age, condition, and site utility drive value far more, with lot size advantages in older homes often offsetting credits for new condition. When appraising the limited new-construction sales (down ~25% YoY overall, 48% in Multnomah), appraisers typically rely on other recent builds and adjust heavily for quality of upgrades and site characteristics.
Overall, Portland’s starter segment continues heavy reliance on mid-century stock on larger lots—a pattern unlikely to change dramatically in 2026 without major supply shifts, though the City of Portland is attempting to incentivize new projects via SDC waivers. The modest new-construction foothold demonstrates builder adaptation, but at the clear cost of site size and outdoor space.
Saturday, December 27: Portland’s First-Time Buyers Have No Choice But to Wait Until 40 — Q3 2025 Data Explains Why
Classic Craftsman bungalows homes in a Portland neighborhood. While older detached stock like this offered relatively better access for younger buyers in Q3 2025 (15% affordable in Multnomah County under realistic PITI assumptions), many close-in properties commanded premium prices—this example on the right sold for $1.1 million. Photo: Abdur Abdul-Malik, Portland Appraisal Blog
Recent Q3 2025 data reveals that only about 10% of detached single-family homes in the Portland Region were affordable to typical households aged 25–44 under realistic payment assumptions, highlighting why first-time buyers are increasingly delayed until reaching age 40. Nationally, the median age of first-time buyers has hit a record 40, with their share of purchases at a historic low, driven by persistent affordability barriers.
Traditional measures, such as the National Association of Realtors’ Housing Affordability Index—which considers only principal and interest with a 25% qualifying ratio—suggest that roughly 28% of Q3 2025 detached sales in the six-county Portland Region were affordable to a household at the area median income of $124,100. However, incorporating actual property taxes and a conservative homeowners insurance estimate into the full PITI payment drops this to 20% for the same benchmark.
This analysis introduces the new Portland Appraisal Blog Affordability Index (PABAI)—a more accurate, PITI-based metric tailored to the Portland Region’s market. The PABAI expresses affordability as an index value (100 indicating exact qualification for the typical home) and derives the percentage of sales affordable to reference households. For the regional benchmark using HUD’s $124,100 area median income, the PABAI stood at approximately 78. For younger 25–44 households with a median income of about $110,000, it fell to 69—meaning only 9.8% of Q3 detached sales (460 out of 4,682) were within reach. The typical $600,000 detached home required roughly $159,000 in household income—45% above this cohort’s median.
County-level variation underscores geographic disparities for 25–44 buyers. Outer areas like Columbia County (34% affordable) and Yamhill County (23%) provided the most options, though often at the cost of longer commutes to urban centers. Multnomah County outperformed at 15%, benefiting from denser, older stock, while suburban Washington (3%) and Clackamas (5%) counties lagged due to larger lots and higher-priced inventory. Hood River registered just 3%.
In Q3 2025, younger buyers seeking detached homes typically needed substantial family assistance, extreme lifestyle sacrifices for larger down payments, or outlier incomes well above cohort medians to gain entry. Without these, most were effectively priced out until accumulating higher earnings in their late 30s or early 40s—or forced into alternatives like condominiums.
The PABAI models affordability with a 20% down payment, 28% front-end ratio, actual rates, listing taxes, and a 0.40% insurance rate, offering granular insights beyond national indices that overlook taxes and insurance. This realistic approach confirms the structural challenges pushing first-time buyer ages upward in the Portland Region.
Taken together, this week’s coverage paints a picture of a Portland metro market where structural barriers—high prices, elevated property taxes, and insurance costs—continue to sideline younger households from detached homeownership. The introduction of the Portland Appraisal Blog Affordability Index offers a clearer, more localized tool for understanding these gaps, showing that realistic PITI-based qualifying leaves fewer than 10% of recent sales within reach for 25–44-year-olds.
Regulatory and measurement topics add another layer of complexity for industry professionals. Clarifications around the 2024 MAV Reset and the accompanying tax implications serve as reminders that appraisal assignments increasingly demand careful awareness of tax policy and its effects on value and marketability.
The common thread remains one of constrained supply at affordable price points, driving both multifamily investment and prolonged timelines for single-family entry. These dynamics suggest the region will continue favoring those with established equity or higher earnings, while first-time buyers face extended waits or alternative paths like condominiums.
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
Question: With first-time buyers now commonly having to wait until 40 to purchase a detached home in the Portland Region, what trade-offs are younger households making today to eventually break into ownership?
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
How pre-1997 Portland metro homes—especially those with veteran or active-duty exemptions—are facing sudden property tax jumps on sale or disqualification.
A classic pre-1940 home in the Portland Region – the type of property often benefiting from deep Measure 50 tax compression. Photo: Portland Appraisal Blog
Imagine closing on a well-maintained pre-1940 Craftsman in an established close-in Portland neighborhood. The sale price felt fair, the taxes shown on the listing and county statement appeared reasonable, and the transaction cleared due diligence without issue. Then the next year’s tax bill arrives—$2,000 to $6,000 higher than anticipated. The increase isn’t due to a sudden spike in market value, but to a change in how Oregon counties now calculate Maximum Assessed Value (MAV) when certain partial property tax exemptions end.
This situation is no longer hypothetical. Oregon REALTORS first highlighted the risk in a December 12th, 2025 internal “Forms Tip of the Week” communication, alerting members that the loss of veteran or active-duty partial exemptions—commonly triggered when a qualifying veteran or surviving spouse sells the home or passes away without a qualifying successor—can lead to significant tax increases under updated guidance from the Oregon Department of Revenue.
While the veteran and active-duty exemptions (ORS 307.250 and 307.286) have drawn attention to the issue, the underlying driver is broader: the substantial tax compression created by Measure 50 for properties built or long-held before 1997.
Historically, when these modest partial exemptions ended, counties simply removed the discount and allowed the low underlying MAV to continue. The 2024 guidance change now enforces a constitutional requirement to reset MAV closer to current market reality upon disqualification.
The outcome: buyers may face permanently higher carrying costs they did not expect, sellers (including veterans and surviving spouses) can find their properties harder to market at full value, and appraisers encounter a marketability factor worthy of note when present.
This Deep Dive reviews the mechanics, illustrates the pattern with Portland Region sales data, and provides practical steps for identifying and addressing the issue in appraisal assignments.
Understanding Measure 50: The Foundation of Tax Compression
To grasp why the loss of a veteran or active-duty exemption can now lead to significant tax increases, we must first understand Oregon’s Measure 50 property tax system, approved by voters in 1997.
Measure 50 replaced the previous tax structure with two key values for each property:
Real Market Value (RMV): The county assessor’s estimate of what the property would sell for on the open market. This value can rise or fall annually with market conditions.
Maximum Assessed Value (MAV): A separate taxable value created by Measure 50. For existing properties in 1997, MAV was initially set at approximately 90% of the 1995–1997 RMV. Thereafter, MAV is generally limited to a 3% annual increase, with exceptions for major additions, improvements, or certain other events.
The Assessed Value (AV) is the lesser of RMV or MAV. Taxes are calculated by multiplying the AV by the local tax rate.
In high-appreciation markets like the Portland metro area, this 3% cap creates substantial tax compression over time. A home purchased or built before 1997 can have an MAV far below its current RMV after decades of strong market growth.
Annual property taxes vs. Year Built, excluding new construction and obvious data errors. Note: Scatter plots are limited to properties with annual taxes of $21,000 or less to highlight the primary distribution and improve readability.
The scatter illustrates the effect clearly: pre-1960 homes are overwhelmingly clustered below $10,000–$12,000 in annual taxes, with the densest grouping under $8,000–$9,000. Properties on the far left (pre-1920 builds) often show the deepest compression, having benefited from the longest period of capped MAV growth. Post-1990 homes, by contrast, display significantly higher tax burdens, reflecting less historical compression.
When a triggering event occurs—such as disqualification from a partial exemption—the MAV can be recalculated using the Changed Property Ratio (CPR), typically around 0.54 for residential properties in Portland Region counties for the 2025–2026 tax year, applied to current RMV.
In the next section, we examine local sales data that quantifies the scale of this compression and illustrates why the reset can matter in real transactions.
The Data: Tax Compression in the Portland Metro Market
Q3 2025 sales data from detached single-family residences (SFR) in the Portland Region (Clackamas, Columbia, Hood River, Multnomah, Washington, and Yamhill counties) illustrates the scale of Measure 50 compression and why a MAV reset can create material differences in carrying costs.
The table below summarizes average sale prices and annual property taxes by approximate decade built. Flagged new construction is excluded due to frequently incomplete or preliminary tax assessments at the time of sale, which can distort the pattern of long-term compression. This brings the Q3 2025 dataset to 4,256 sales total.
Decade Bucket
Avg Sale Price
Avg Annual Taxes
Avg Tax per $1k Sale Price
Pre-1940
$671,295
$6,396
$9.33
1940–1959
$607,466
$5,766
$9.53
1960–1979
$640,000
$5,783
$9.16
1980–1999
$714,535
$7,367
$10.31
2000–2019
$761,061
$7,685
$10.10
2020+ (non-new construction)
$924,420
$8,016
$9.12
Grand Total (excluding new construction)
$688,838
$6,665
$9.68
Data: RMLS | Portland Appraisal Blog
Several patterns stand out:
Absolute tax burden increases with newer construction: pre-1980 homes average $5,766–$6,396 in annual taxes, while 2000–2019 properties average $7,685 and 2020+ non-new construction reaches $8,016.
Effective burden consistency: The Tax per $1k column remains remarkably stable at ~$9–$10 across all eras. This indicates the market prices properties assuming a similar overall tax load, regardless of age.
Pre-1940 premium: Outside recent construction, pre-1940 homes command the highest average sale prices ($671,295) despite paying among the lowest absolute taxes.
Street sign in Portland’s Historic Irvington neighborhood—one of the areas with many high-value pre-1940 homes exhibiting significant Measure 50 compression. Photo: Portland Appraisal Blog (CC BY-SA 4.0)Sale price vs. annual taxes, excluding new construction and obvious data errors. Note: Scatter plots are limited to properties with annual taxes of $21,000 or less to highlight the primary distribution and improve readability.
This scatter shows a strong positive correlation, confirming the market efficiently incorporates expected tax burden into pricing.
Annual taxes vs. total square footage, excluding new construction and obvious data errors. Note: Scatter plots are limited to properties with annual taxes of $21,000 or less to highlight the primary distribution and improve readability.
Here, numerous low-tax outliers are visible below the trend line—properties paying substantially less than size and location would otherwise suggest, consistent with Measure 50 compression.
Taken together, the data reveals a market that rewards older stock with lower absolute taxes without discounting sale prices accordingly. When a MAV reset occurs, absolute taxes move toward levels seen in newer comparable properties, creating the potential for noticeable increases in annual carrying costs.
In the following sections, we explore the specific veteran and active-duty exemptions and the 2024 guidance change that can trigger this alignment.
The Veteran and Active-Duty Exemptions
The exemptions at the center of the current concern are partial property tax reductions for certain military veterans, surviving spouses, and active-duty service members. With approximately 267,000 veterans living in Oregon (and over 114,000 in the Portland metro region), even a fraction of qualifying owners selling or changing status can affect a meaningful number of transactions.
The disabled veteran or surviving spouse exemption (ORS 307.250) provides a reduction to assessed value for homeowners with a service-connected disability rating of 40% or higher (or unremarried surviving spouses). For the 2025–2026 tax year, the reduction is up to $31,565 (service-connected) or $26,303 (standard), worth roughly $400–$700 in annual tax savings in Portland metro areas depending on local rates.
A separate active-duty exemption (ORS 307.286) offers a larger reduction (up to $108,366 for 2025–2026) for Oregon-domiciled service members on qualifying active duty outside the state.
Both are partial exemptions applied to the assessed value of the owner’s primary residence and tied to personal status. Eligibility generally requires a one-time application and VA certification (re-filing needed only if moving to a new property or certified by a private physician rather than the VA).
While the direct savings from these exemptions is modest ($400–$700/year for most veteran claims), the 2024 DOR guidance change treats their disqualification as triggering a full MAV reset—potentially closing decades of Measure 50 compression and leading to significantly higher taxes.
Active-duty cases (e.g., exemption ending upon return home) are less common and typically involve properties with less historical compression.
In the next section, we detail the 2024 guidance change and how it activates the reset.
The 2024 Rule Change
For decades, when a veteran or active-duty partial exemption ended, county assessors typically removed the reduction but preserved the underlying compressed MAV, allowing it to continue growing at the standard 3% rate.
This practice changed with updated guidance from the Oregon Department of Revenue, effective for disqualifications on or after January 1, 2024.
The DOR clarified that disqualification from a partial exemption triggers the constitutional requirement to recalculate MAV using the Changed Property Ratio (CPR)—the county-wide ratio of average MAV to average RMV for the property class. The new MAV becomes current RMV multiplied by the CPR (typically around 0.54 for residential properties in Portland Region counties for the 2025–2026 tax year).
This administrative enforcement of the existing constitutional language means the modest exemption savings ($400–$700/year) is no longer the only consequence. The reset can close much of the Measure 50 compression gap.
In the Portland Region data, pre-1980 homes average $5,766–$6,396 in taxes. A reset aligns absolute taxes closer to 2000+ levels ($7,685–$8,016 average), producing increases commonly in the $1,500–$4,000 annual range on typical sales, with $4,000+ possible in deeper-compression or higher-rate scenarios.
The change is statewide, though impacts vary by local appreciation and rates. Some counties have noted the potential for “significant increase” on loss of exemption.
In the next section, we examine the real-world implications for transactions and what appraisers should watch for.
Real-World Implications
The 2024 guidance change does not turn every pre-1997 home sale into a crisis, but it introduces friction that can affect negotiations, marketability, and reconciliation of comparables.
Typical tax increases fall in the $1,500–$4,000 annual range for properties in the Portland Region dataset ($600,000–$800,000 sale prices with pre-1980 build years). This translates to $125–$333 extra per month.
The Silent Car Payment
In late 2025 terms:
Average used-car payment: ~$532/month
Average new-car lease: ~$596/month
Average new-car purchase payment: ~$748/month
A $2,000–$4,000 annual increase ($167–$333/month) is less than a typical car payment but still noticeable—equivalent to a permanent, non-negotiable “utility bundle” that never goes away. For buyers already stretched in a higher-interest-rate environment, it can shift affordability and prompt renegotiation.
Outlier cases with deeper compression (often “sweet” pre-1940 homes in high-appreciation locations) can see $4,000–$8,000+ increases ($333–$667/month)—territory overlapping average used-car or new-lease payments. These are the transactions Oregon REALTORS described as producing “increases in the thousands,” sometimes requiring substantial seller concessions or risking fallout during due diligence.
The primary impact is often on marketability rather than outright deal death:
Savvy buyers (or their agents/lenders) anticipate the higher future taxes and adjust offers downward.
Sellers—particularly veterans or surviving spouses downsizing—may receive lower net proceeds (capitalizing a $3,000 increase at 6% equates to ~$50,000 less effective value).
Listings can linger if the low current taxes mask the post-closing reality.
For appraisers, this creates a new lens for outliers:
A comparable with an unexplained lower price, large concession, or extended days on market may reflect buyer reaction to a pending MAV reset.
Low-tax outliers in the grid (visible in the Taxes vs. Total SF scatter) could indicate compressed MAV or an active exemption—worth verifying via county records when material.
The change is statewide, but effects are most pronounced in areas with strong historical appreciation, like the Portland Region.
In the next section, we outline practical steps appraisers can take to identify and address this factor in reports.
What Appraisers Should Do
The 2024 guidance change introduces a marketability factor that appraisers in Oregon should consider when the subject or comparables involve pre-1997 properties, particularly those with potential veteran or active-duty exemptions.
Practical Checklist
Verify Exemption Status Review county tax records and the preliminary title report (if available) for indications of an active veteran, surviving spouse, or active-duty partial exemption. Many counties list it on the property tax statement or online portal.
Estimate Post-Transfer Tax Liability If an exemption is present and likely to disqualify on transfer (e.g., sale to non-qualifying buyer), note the potential increase. Use county assessor tools or CPR data to project the reset MAV (current RMV × CPR) and resulting taxes. Typical jumps in the Portland Region fall in the $1,500–$4,000 annual range, with higher amounts possible in deep-compression cases. Note that tax rates vary by code area.
Comment on Marketability When Material Include commentary if the differential is significant: “The subject property currently benefits from a veteran partial exemption expected to end upon transfer, potentially increasing annual taxes by an estimated $X. This may affect buyer affordability and market reaction.”
Reconcile Outliers with This Lens Low-tax outliers in the sales grid (visible in Taxes vs. Total SF analysis) may reflect compressed MAV or an active exemption—a “decaying asset” under the new guidance. Check effective tax rate (annual taxes ÷ sale price): ~0.6–0.8% may indicate compression; consider post-reset alignment (~1.1–1.3%) in reconciliation. Using a compressed comparable without adjustment risks overvaluing the subject’s marketability, as savvy buyers increasingly factor in the reset.
Use Dual Scenarios if Appropriate For subjects with active exemptions, provide current and projected post-reset tax estimates in the addendum or comments to inform the intended user.
Resources:
County assessor websites (tax statements often flag exemptions)
DOR Veteran Exemptions page
MAV Manual for general mechanics
As resets propagate into closed sales (expected more visibly in 2026 onward), this factor may explain otherwise puzzling comparables. Early identification helps ensure accurate valuation and informed clients.
In the closing section, we look at the broader outlook.
Closing Thoughts
The 2024 DOR guidance change is an administrative enforcement of a long-standing constitutional provision, but its impact is only now becoming visible as disqualifications occur and 2025–2026 tax statements arrive. Larger effects are expected in the 2026–2027 cycle as more veteran-owned properties sell or change status.
The 2025 Oregon Legislative Session saw bills (e.g., HB 2361/SB 387 aiming to lower the disability threshold, HB 3287 to increase exemption amounts) intended to expand veteran benefits. While these efforts highlight recognition of the issue, none addressed the MAV reset trigger itself. The constitutional requirement remains unless amended or re-interpreted.
For appraisers working in the Portland Region and similar appreciation-driven markets, this issue adds one more layer to marketability analysis. Low-tax outliers in older properties represent a benefit that can evaporate on transfer—reliable today, but potentially “decaying” tomorrow.
Awareness helps everyone involved: appraisers reconcile comparables more accurately, agents counsel clients proactively, and buyers/sellers avoid surprises.
If you encounter real-world examples (anonymized comps with concessions due to reset concerns, or listings noting the risk), please share them for future updates. Documenting patterns strengthens our collective understanding.
Thank you for reading this Appraisal Deep Dive. Stay informed and precise in your work.
Quick Reference Cheat Sheet
Reset Formula
Real Market Value (RMV) × Changed Property Ratio (CPR)
Typical CPR (2025–2026, Portland Region residential)
~0.54 (updated annually each October)
Reset Trigger
Disqualification from veteran/active-duty exemption
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
$79M Barbur Apartments groundbreaking in SW Portland, with $27M from the city, illustrates plottage as parcel assemblage enables 150-unit affordable housing in a market area averaging $691,000 for ownership.
The Barbur Apartments site sits at the prominent intersection of SW Barbur Blvd and SW Capitol Hill Rd. Photo: Portland Appraisal Blog
Barbur Apartments Groundbreaking
Groundbreaking began in mid-December 2025 on the Barbur Apartments, a 150-unit affordable family housing project at the corner of SW Barbur Blvd and SW Capitol Hill Rd in Portland’s Hillsdale/Multnomah Village area.
Developed by Innovative Housing, Inc., the complex will have one three-story building and two four-story buildings, bringing the total unit count to 150. With one unit reserved for an onsite manager, 149 units will be income-restricted, with many configured as larger two- to four-bedroom layouts for immigrant and refugee families—alongside amenities such as a courtyard and community spaces. Completion is anticipated in Fall 2027.
The project has an estimated total development cost of approximately $79.4 million, with the Portland Housing Bureau contributing about $27.3 million alongside regional Metro Housing Bond funds, federal sources, and Portland Clean Energy Community Benefits Fund dollars for energy efficiency.
The project emphasizes transit access along the Barbur corridor. Approved plans include approximately 45 on-site parking spaces—a low ratio of roughly 0.3 spaces per unit that reflects the transit-oriented design.
Appraisal Implications: Plottage and Highest-and-Best-Use Shift
The site’s redevelopment offers a clear illustration of plottage—the added value created when contiguous parcels are assembled into a larger, more viable development parcel.
Four separate tax lots totaling approximately 2.19 acres were acquired together in February 2025 for just under $6 million. Individually, the parcels supported lower-intensity uses limited by size, zoning, and existing improvements.
Aerial view of the Barbur Apartments site from Portland Maps, showing the four assembled tax lots (outlined in red, totaling approximately 2.19 acres). Labels highlight the demolished single-family home parcel, the former Barbur Blvd Rentals commercial building, and the Safeway shopping center across the street. Image: Portland Maps
One parcel previously contained a 1927-built single-family home of approximately 2,336 square feet. Never listed on the open market, the house exhibited functional obsolescence relative to the corridor’s evolving highest and best use and was rapidly demolished.
View of one of the assembled parcels in December 2025. The 1927-built single-family home that once stood here has been fully demolished, illustrating its functional obsolescence as the site shifts to higher-density residential use. Photo: Portland Appraisal Blog
An adjacent commercial strip—formerly Barbur Blvd Rentals—remains standing but is now fenced within the secured construction zone.
The former Barbur Blvd Rentals commercial building, still standing as of December 2025, forms part of the assemblage. Photo: Portland Appraisal Blog
Combined, these parcels unlock a scale and density that individual lots could not support, demonstrating classic plottage principles in a transit-oriented location.
Directly across Barbur Blvd, there is a large Safeway complex.
The Safeway shopping center opposite the Barbur Apartments site—a major convenience for future residents. Photo: Portland Appraisal Blog
This Safeway has an impressive open-access parking garage underneath the store. The center’s covered and surface parking serves as a major existing amenity. Given the Barbur Apartments’ family-oriented unit mix and limited on-site stalls, residents and guests may increasingly rely on this convenient private lot for overflow. A recent visit to the garage mid-morning showed a nearly full garage. It’s possible daytime use of the garage may skyrocket once the apartment complex is built—a dynamic worth monitoring as occupancy begins in 2027.
Ground-level covered parking beneath the Safeway store, photographed on a Friday morning in December 2025. With only about 45 on-site stalls planned for the 150-unit project, this existing private amenity may see increased use by residents and guests for overflow parking. Photo: Portland Appraisal Blog
Market Context
In the immediate Hillsdale and Multnomah Village neighborhoods, closed sales from 2024–2025 reflect sustained demand amid limited affordability.
Type
# of Sales
Avg Close Price
Avg PPSF
Avg Total SF
Avg CDOM
Detached
351
$750k
$342
2,313
50 days
Condo
78
$445k
$321
1,382
68 days
Attached
13
$581k
$328
1,846
49 days
Total
442
$691k
$338
2,135
53 days
Source: RMLS closed sales data for Hillsdale and Multnomah Village neighborhoods, 2024–2025. Figures rounded for readability. Data: RMLS | Portland Appraisal Blog
Detached homes dominated activity with 351 sales at an average of $750,000 and brisk 50-day market times. Condominiums—the most accessible ownership segment by volume—averaged $445,000 across 78 sales, though with noticeably longer absorption (68 days CDOM). While attached homes (such as townhomes) represent a small segment of the market with only 13 transactions, they averaged $581,000—likely reflecting more recent construction (average year built 2010) and associated premiums.
These figures across all segments highlight significant ownership barriers in the submarket, reinforcing the role of regulated rental projects like Barbur Apartments for lower-income and larger families.
This assemblage aligns with broader efforts to expand housing supply through density and public investment, including recent regulatory reforms aimed at reviving Portland development.
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
Portland closed out the year with stories that captured the city’s ongoing effort to expand housing thoughtfully—balancing historic preservation against current demand, adaptive reuse of industrial landmarks, and incremental regulatory changes to enable more homes. From supportive towers built with sustainable mass timber to statewide zoning tools re-legalizing neighborhood apartments, and creative transformations of obsolete sites, the week reflected a market navigating caution while pursuing infill and affordability in established areas.
Sunday, December 14: Julia West House Supportive Housing Tower Opens
The Julia West House, a modern multistory building in downtown Portland, stands tall with its grid of windows and light brick facade—captured from a low angle that emphasizes its architectural presence. 580 SW 13th Ave, Portland, Oregon – December 2025 Photo: Portland Appraisal Blog (CC BY-SA 4.0)
Downtown Portland marked a milestone with the opening of Julia West House, a 12-story mass timber tower providing permanent supportive housing for seniors who had experienced homelessness. Built on a former parking lot at 580 SW 13th Avenue, the project delivers 90 units—60 studios and 30 one-bedrooms, with 89 deeply affordable at 30% or less of area median income, plus one unrestricted manager unit. On-site services from partners like Northwest Pilot Project focus on aging in place, addressing the reality that nearly a quarter of the city’s unhoused population is age 55 or older.
As Oregon’s tallest mass timber residential building at 145 feet, it employs cross-laminated timber floors and glulam beams above a concrete podium, shortening the construction schedule by about 14 weeks and incorporating biophilic elements like exposed wood ceilings. Adjacent to another supportive building, it forms a concentrated hub in the West End.
Developments like this expand deeply affordable rental supply in central locations with strong transit access. They provide market evidence of efforts to address affordability and homelessness, informing highest and best use considerations for nearby properties and enhancing neighborhood marketability.
In multifamily assignments, mass timber construction sets emerging precedents for sustainable practices, potentially affecting future replacement costs, capitalization rates, and development feasibility in urban zones. Restricted units supported by tax credits require careful isolation of encumbered interests from hypothetical fee simple value.
Monday, December 15: Fannie Mae Expands ADU and Renovation Eligibility
Detached guest house on a residential property, illustrating expanded ADU eligibility Via Canva Pro
Fannie Mae updated its guidelines with significant expansions to renovation lending and accessory dwelling unit eligibility, offering more options for homeowners in the Portland region. HomeStyle Renovation loans now allow upfront disbursements of up to 50% of renovation costs at closing, while removing prior caps on manufactured home improvements—now up to 50% of as-completed value.
Effective in 2026, single-unit properties can include up to three ADUs if zoning permits, with total units capped at four even on two- to three-unit homes. These changes align manufactured housing more closely with site-built and build on local incentives like temporary system development charge waivers.
The updates heighten reliance on as-completed valuations for loan-to-value ratios and eligibility. Appraisers may see increased demand for projected-value analyses on properties with multiple ADUs or extensive renovations, requiring solid review of local zoning and market acceptance to support highest and best use conclusions.
These provisions complement Portland metro efforts to encourage middle housing, providing alternatives to jumbo financing alongside rising FHA limits.
Tuesday, December 16: Oregon Model Code Enables Neighborhood-Scale Apartments
Three-story, 16-unit apartment building on a standard Portland residential lot, illustrating potential density under middle housing reforms 11 NE 55th Ave, Portland, Oregon – December 2025 Photo: Portland Appraisal Blog
Oregon adopted a statewide model zoning code under the Oregon Housing Needs Analysis framework, shifting from unit caps to form-based standards that re-legalize small apartment buildings in residential zones. The rules permit duplexes through fourplexes, townhouses, and cottage clusters outright, with bonuses for accessibility or affordability, while slashing parking mandates.
Affected cities—primarily Oregon’s larger municipalities, including Portland, Beaverton, Gresham, Hillsboro, and others in the metro area—must align zoning with the model code if they fail to meet production targets, though implementation timelines vary by jurisdiction and can extend several years. Form-based limits keep development neighborhood-scale, typically supporting 6–12 units on a standard lot.
These rules expand as-of-right development options on residential lots, particularly corner or larger parcels in single-family zones. Highest-and-best-use analyses may now reflect stronger redevelopment potential for small multifamily or middle housing types in cities subject to the model code.
Although the model code removes unit-count caps, form-based limits on height, coverage, and floor area ratio maintain neighborhood character. While larger projects, such as a 16-unit building, are now more feasible, they remain a different undertaking involving complex regulatory review, commercial-grade construction, specialized financing, and contractor expertise.
Market activity will likely continue to favor rehabilitation of existing homes alongside gradual small-scale infill—many builders focus on single-family with ADUs. Appraisers need to be mindful of what is possible under the new zoning allowances while analyzing what the market is actually doing.
Form-based standards and reduced parking mandates lower barriers to small apartment or townhouse projects, with affordability bonuses providing quantifiable incentives. Over time, this may broaden comparable selection for emerging middle housing.
Wednesday, December 17: Reviving Portland Development: Design Review Reforms, Bureau Cuts, and the Push for More Housing
Low-angle view of the 1900 Building in downtown Portland, home to the Bureau of Development Services. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
New construction slowed markedly in the Portland region, with Q3 2025 single-family sales dropping 25% year-over-year and comprising just 9% of transactions—steeper in Multnomah County at roughly 48%. Reduced activity contributed to monthly shortfalls at the Bureau of Development Services, leading to 72 staff cuts.
City Council advanced studies on design review exemptions and moratoriums for housing, alongside the Unified Housing Strategy’s focus on streamlining, consolidated processes, and incentives like extended state tax exemptions for mixed-use.
Short-term staffing reductions may prolong timelines, impacting feasibility in proposed construction assignments.
Longer-term reforms could boost multifamily supply, expanding comparables for vertical mixed-use or conversions—though gains may lag into 2026–2027 amid ongoing caution.
Thursday, December 18: Portland’s Historic Homes and the PSU Demolition Debate
Close-up of Blackstone Residence Egyptian corner sculptures. Blackstone was designed by Elmer Feig and the sculptures reflected national interest following the discover of King Tutankhamun’s tomb. Photographed in 2025. Photo: Portland Appraisal Blog
Portland State University’s plan to demolish two early-20th-century residence halls on the Historic Resources Inventory for new student housing spotlighted preservation challenges. The buildings lack full landmark status, limiting delays, yet advocates highlight rehabilitation benefits for carbon and culture.
In the private market, only 15 verified registered historic single-family sales occurred in Portland from 2023 through Q3 2025, averaging $1,256,588 in premier neighborhoods like Irvington. These reflect premiums for authenticity offset by maintenance and review burdens, with incentives available.
Due diligence via Portland Maps or title reports is essential to confirm designation—many older homes lack it.
Designations influence marketability through higher costs and restrictions, balanced by tax benefits for qualifying owners.
Friday, December 19: 1803 Fund Unveils Adaptive Reuse Plans for Portland’s Historic Grain
Portland’s iconic grain silos along the Willamette River, as seen today from the east bank. Built in 1914 and long a symbol of the city’s industrial past, these structures are set for creative adaptive reuse while preserving their monumental presence. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
The 1803 Fund detailed plans to preserve Portland’s 1914 grain silos on the Willamette east bank as a cultural waterfront hub with galleries, event spaces, and mixed-use additions. The $70 million acquisition covers the three-acre silo site plus about 20 tax lots in The Low End (seven acres), totaling roughly 10 acres.
The silo site’s history illustrates functional obsolescence: after $21.5 million modernization in 2013, it sold for $164,000 in 2019 post-rail loss, then $2.9 million in 2021, with a recent $6.5 million listing. Assembly unlocked plottage for master-planned redevelopment, including multi-million remediation of brownfield contamination and a projected $700 million economic impact.
This demonstrates highest and best use shifts in industrial zones—from obsolete terminal to cultural anchor—with rezoning needed for proposed hospitality elements.
Plottage and stigma removal can lift land values in obsolescent corridors, creating uplift via public amenities.
Saturday, December 20: Alberta Alive Townhomes Rise Opposite Historic Alberta Abbey
Early site preparation underway for the Alberta Alive Townhomes in Northeast Portland, with the historic Alberta Abbey visible in the background. Photo: Portland Appraisal Blog (CC BY-SA 4.0)
Construction began on Alberta Alive Townhomes in Northeast Portland’s Alberta Arts District, delivering eight permanently affordable three-bedroom units via Proud Ground’s community land trust. Opposite the historic Alberta Abbey, these all-electric, Earth Advantage-targeted homes prioritize families with local ties.
Nearby market-rate three-bedroom attached homes averaged $574,900 over four years (1,650 square feet, $355 per square foot), highlighting the premium these restricted units address through public funding. Local families will be able to enjoy quality townhome units that would otherwise be unaffordable.
Community land trust units—with resale caps—are not directly comparable to unrestricted sales. Appraisers generally omit affordable housing units from analyses involving unrestricted properties.
High-quality infill can stabilize neighborhoods and anchor upward pressure on conventional properties nearby.
This week’s posts revealed Portland’s pragmatic approach to growth—reusing landmarks like grain silos, easing rules for modest density, and targeting affordability without overhauling single-family zones overnight. Preservation and adaptation stood out as practical paths forward in a market still feeling permitting and production headwinds.
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
Question: Which story from the week—mass timber supportive housing, statewide middle housing tools, or waterfront silo reuse—do you see having the biggest long-term ripple on Portland metro valuations?
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
Portland Appraisal Blog 
