Tag: PABAI (Portland Appraisal Blog Affordability Index)

Appraisal Brief: Strong Family Apartments – Assemblage, HBU Shift, and Affordability Gap in Humboldt

The Strong Family Apartments transform an underutilized 0.96‑acre site into 75 long‑term affordable family units in Humboldt. With plottage‑enabled density, CM2 zoning, and a 99‑year covenant, the project fills a critical gap in a corridor where only 1%–3% of recent sales were affordable to 60% AMI households.

The Strong Family Apartments at N Alberta St & N Williams Ave in Humboldt, viewed from the intersection. The 4-story building maximizes the assembled 0.96-acre site for 75 restricted affordable family units.
Photo: Abdur Abdul-Malik (March 2026), Portland Appraisal Blog

The Strong Family Apartments rise at the corner of N Alberta Street and N Williams Avenue in North Portland’s Humboldt neighborhood—a site long held by the Strong family, whose roots reflect the deep history of Black homeownership and community life in N/NE Portland. For decades, the property remained a modest home surrounded by open grassy land across multiple tax lots. In 2019, the Portland Housing Bureau acquired the site for land banking, and in 2024 transferred title to Strong AA Limited Partnership—a partnership led by Community Development Partners and Self Enhancement, Inc.—to deliver a 75‑unit affordable multifamily community.

True to the project’s name, the development is intentionally family‑oriented and contains no studios. The unit mix includes 21 one‑bedrooms, 32 two‑bedrooms, and 22 three‑bedrooms, with rents restricted at 30% and 60% of area median income. Eleven units are deeply affordable at ≤30% AMI, and the project prioritizes the City’s N/NE Preference Policy for households displaced by past urban renewal and gentrification in North and Northeast Portland. With 54 family‑sized units, the building fills a gap in a neighborhood where market‑rate options have become increasingly out of reach for moderate‑income families.

From an appraisal perspective, the site tells a clear story. Assemblage of multiple parcels into a unified 0.96‑acre lot unlocked plottage value and enabled a highest‑and‑best‑use shift to family‑oriented multifamily housing in the CM2 zone—a designation with no parking minimums and incentives for dense, transit‑supported development along key corridors. The redevelopment transforms a historically underutilized corner into a long‑term community asset governed by a 99‑year affordability agreement.

This post examines the project through that lens: how zoning, public‑private tools, and assemblage shaped feasibility; how restricted‑use valuation differs from market‑rate ownership in Humboldt; and what the Strong Family Apartments reveal about affordability, displacement, and redevelopment in Portland’s evolving N/NE housing landscape.

Site History, Project Details & Zoning

The Strong Family Apartments occupy a prominent corner at N Alberta Street and N Williams Avenue in North Portland’s Humboldt neighborhood. For decades, the property remained under long‑term ownership by the Strong family, whose generational roots reflect the deep history of Black families in N/NE Portland. Prior to redevelopment, the site consisted of multiple smaller tax lots totaling nearly one acre, largely underutilized as open grassy land surrounding a modest single‑family home—clearly visible in 2019 archival Street View and aerial imagery. In CM2 zoning, a medium‑scale commercial mixed‑use designation intended for transit‑served corridors, a single‑family home on such a large combined parcel represented significant underutilization. The zone supports mid‑rise multifamily buildings rather than detached homes, with no parking minimums and height allowances of 45 feet (up to 75 feet with bonuses).

Archival Google Street View from July 2019 showing the site prior to redevelopment: a modest home surrounded by open grassy land across multiple tax lots.
Source: Google Street View
Aerial view of the Strong Family Apartments site pre-redevelopment, with the yellow outline highlighting the approximate assembled 0.96-acre footprint across multiple tax lots. The modest home and open grassy areas were underutilized prior to unification, enabling the shift to highest and best use as 75 family affordable units.
Source: Google Maps

In 2019, the Strong family privately sold the property to the Portland Housing Bureau (PHB) for land banking, bypassing any open‑market listing. This acquisition aligned with PHB’s strategy to preserve sites for community‑benefit affordable housing in historically impacted N/NE neighborhoods. The property remained in land bank status until 2024, when City Council Ordinance 191817 authorized transfer of the site to Strong AA Limited Partnership, a private ownership entity formed by Community Development Partners (CDP), the project’s developer, and Self Enhancement, Inc. (SEI), the nonprofit service partner. In this structure, an SEI affiliate serves as the Managing General Partner, a CDP affiliate serves as the Administrative General Partner, and a private tax‑credit investor holds the Limited Partner interest (approximately 99.99%). This arrangement is typical for Low‑Income Housing Tax Credit (LIHTC) developments, the federal program that finances most affordable rental housing in the United States. Under LIHTC, private investors receive a dollar‑for‑dollar reduction in federal tax liability in exchange for investing equity into qualified affordable housing projects, which allows units to rent below market rates. In this structure, the investor provides equity, Community Development Partners oversees development and compliance, and Self Enhancement, Inc. leads resident services and long‑term community engagement.

The project’s financing layers reflect the complexity typical of affordable multifamily development. Approximately $14.2 million came from PHB (including a $11.4 million cash-flow share loan from the 2023 Metro Housing Bond allocation and Interstate Corridor Urban Renewal Area tax-increment financing), supplemented by Portland Clean Energy Fund grants, Oregon Housing and Community Services low-income housing tax credits, and additional contributions. The development remains privately owned and operated, with Guardian Management overseeing leasing and SEI providing resident services. A 99‑year regulatory agreement with PHB mandates long‑term affordability, adherence to the N/NE Preference Policy, and other public‑benefit requirements.

The development delivers 75 rental units across one‑, two‑, and three‑bedroom floor plans, with all rents restricted for households earning 30% or 60% of area median income (AMI). Eleven units are deeply affordable at ≤30% AMI, prioritizing families with the highest need. The table below summarizes the mix and representative rent levels.

BedroomsNumber of UnitsAMI LevelEstimated Rent Range
1 Bedroom21≤30% and ≤60% AMI~$656 (30% AMI 1BR example)
2 Bedroom32≤30% and ≤60% AMI~$1,195–$1,215 (45% AMI 2BR example)
3 Bedroom22≤30% and ≤60% AMI~$905 (30% AMI 3BR example)

Rents are not subsidized (no project‑based vouchers); residents pay the full restricted amount plus electricity, while the landlord covers water and trash. The mix emphasizes family households, with the N/NE Preference Policy prioritizing those displaced from the area.

Amenities include a large central courtyard with a private playground and nature‑inspired play features, indoor bike parking and storage, on‑site laundry, a community room and kitchen, and resident services focused on youth education, employment support, and family stability. The building targets Earth Advantage Platinum certification for energy efficiency, solar readiness, and a tight building envelope.

Central courtyard during final construction, prepped for family playground and nature play features.
Photo: Abdur Abdul-Malik (March 2026), Portland Appraisal Blog

Construction began in late 2024 after financing closed in August 2024. Completion is expected in Spring 2026, with leasing to follow. The timeline—from 2019 acquisition through multiple funding layers, permitting, and construction—reflects the typical duration and complexity of affordable multifamily development in Portland.

The CM2 zoning directly supported the site’s highest and best use. Multifamily residential is a primary permitted use on transit‑served corridors, with no parking requirement and incentives for density. Assemblage of the multiple lots into a single 0.96‑acre parcel enabled the scale, layout, and family‑oriented amenities that a single‑family home on fragmented parcels could never achieve.

Portland Maps tax lot overlay showing the multiple original parcels assembled into a single 0.96‑acre unified lot. The combined footprint that enabled density and family amenities.
Source: Portland Maps

Neighborhood Context — Humboldt Market & Amenities

Humboldt is a compact, vibrant inner North/Northeast Portland neighborhood centered around the Alberta–Williams corridor. With a Walk Score of 89 (“Very Walkable”) and a Bike Score of 100 (“Biker’s Paradise”), most daily needs can be met on foot or by bike, supported by a Transit Score of 53 and frequent bus service along N Williams, N Vancouver, and N Killingsworth, plus proximity to the MAX Yellow Line. The area blends long‑standing community roots with ongoing revitalization, anchored by the Alberta Arts District’s murals, galleries, indie shops, cafés, restaurants, and the long‑running Last Thursday street events.

Education and youth resources form a strong neighborhood backbone. Jefferson High School—with its full‑size football field, track, and community programming—sits within Humboldt boundaries and is walkable or bikeable from the Strong site. Nearby KairosPDX, a public charter school focused on culturally responsive education, and Portland Community College Cascade, just north of the neighborhood, add depth through early‑learning programs, K–8 support, and college‑level career and transfer pathways. Together, these institutions reinforce the project’s family‑oriented design and align with the N/NE Preference Policy’s emphasis on retaining generational ties for households with a historical connection to the area.

Jefferson High School in the Humboldt neighborhood, shown with its athletic fields and campus layout as seen in Google Earth. The school sits within walking and biking distance of the Strong Family Apartments.
Source: Google Maps
KairosPDX, a public charter school in Humboldt, serves as a key family and education resource. Its proximity to the Strong Family Apartments supports the project’s family‑oriented design and 54 two‑ and three‑bedroom units, providing walkable access for residents with children.
Photo: Abdur Abdul-Malik (March 2026), Portland Appraisal Blog

Employment access is unusually strong for a neighborhood‑scale project. The WorkSource Oregon center (State of Oregon Employment Department Portland Metro office) sits directly across N Williams Avenue from the Strong site. The facility provides job search assistance, training referrals, career counseling, unemployment support, and connections to workforce programs—resources that complement SEI’s on‑site youth and employment services and enhance the project’s location externalities for income‑restricted families.

WorkSource Oregon center (State of Oregon Employment Department facility) directly across N Williams Avenue from the Strong Family Apartments site. This proximity to state‑supported job search, training, and employment resources enhances location externalities for residents, particularly families prioritized under the N/NE Preference Policy.
Photo: Abdur Abdul-Malik (March 2026), Portland Appraisal Blog

Grocery access is a modest tradeoff. Unlike some recent Portland affordable developments with immediate adjacency to major grocers (e.g., Trader Joe’s at HollywoodHUB or Safeway at Barbur Apartments), Humboldt lacks a full‑service chain supermarket within its boundaries or within a short walk of the Strong site. The nearest practical options are New Seasons Market on N Williams Avenue (~0.8 miles south, 15–20 minute walk or 5-minute bike ride along protected lanes) and Safeway (~0.8 miles northeast). Delivery services (Instacart, New Seasons own platform, etc.) are widely available, and insulated bags, cargo bikes, or e-assist options mitigate summer heat or load-carrying challenges. The Safeway route involves crossing the major arterial NE Martin Luther King Jr Blvd, making it less preferable for walking. This pattern aligns with the corridor’s multimodal design and the project’s minimal parking program (15 EV-ready shared spaces).

The neighborhood reflects a long history of community change, with significant gentrification pressures, a high renter share (49% per the City of Portland’s 2023 neighborhood demographic profile), and rising ownership costs. These dynamics underscore the importance of restricted affordable family housing in a corridor where market‑rate ownership has become increasingly out of reach for moderate‑income households.

Labeled aerial map (Google Maps) of the Strong Family Apartments site (red pin) and surrounding Humboldt neighborhood amenities. Key resources include WorkSource Oregon, Jefferson High School, KairosPDX, and Portland Community College Cascade—all within a short walk or bike ride. This cluster strengthens the project’s location advantages for income‑restricted families.
Source: Google Maps

Data & Analysis — Humboldt’s Owned Market in Contrast

Understanding the context for the Strong Family Apartments requires examining Humboldt’s recent open‑market ownership landscape. This analysis uses RMLS data for 1–3 bedroom SFR‑class transactions (detached, condo, and attached) from 2024 through year‑to‑date 2026—the period that best reflects current market conditions. All figures represent descriptive statistics from the full set of qualifying sales; no sampling or modeling is involved.

The Portland Appraisal Blog Affordability Index (PABAI) measures how the average home close price compares to what a household at a given income level can qualify for under standard lending assumptions (HUD median MSA income, 20% down payment, and a 28% debt‑to‑income ratio for principal, interest, taxes, and insurance). A PABAI of 100 means the market is exactly affordable at that income level (current HUD median MSA income is $124,100 for a family of four in the Portland metro area) . Values above 100 indicate excess qualifying capacity (more affordable), while values below 100 indicate a shortfall (strained affordability). Full methodology and the interpretation scale are available on the PABAI explainer page.

PABAI RangeInterpretation
120+Strongly Affordable
100–119Moderately Affordable
80–99Strained
Below 80Severely Constrained

The PABAI is recalibrated here to a 60% AMI benchmark ($74,460 maximum income for a four‑person household), aligning with the majority of Strong’s units.

Humboldt 1–3 Bedroom Sales by Property Type (60% AMI Benchmark)

Property TypeAvg BedsAvg Close PriceAvg PABAI (60% AMI)Affordable Sales (out of total)
Detached2.74$533,73855.200 / 38
Condo1.98$387,93970.281 / 49*
Attached2.57$488,35756.970 / 7
*Note: Including 0‑bedroom studio condos (outside the 1–3 bedroom focus) adds two additional qualifying sales, bringing the total to three affordable transactions across the full condo dataset. All three were small 0–1 bedroom units (381–510 SF, no garages, prices $165,000–$237,999). No qualifying sales occurred in any 2–3 bedroom units across any property type.

Detached Homes: The Traditional Family Segment

Detached homes—typically older (average build year 1940), larger (1,933 SF average), and more likely to include garages (0.61 average spaces)—represent the traditional family‑oriented housing stock most comparable to Strong’s 2–3 bedroom units. In this segment, the PABAI falls to a severely constrained 55.20, with zero of the 38 transactions qualifying as affordable for a 60% AMI household. This reflects the substantial income gap required to purchase family‑sized homes in Humboldt under standard qualification criteria.

Condos: Relatively Less Constrained, but Not for Families

Newer condos (average build year 2010, 1,006 SF average, minimal garage access) show a higher average PABAI of 70.28, indicating somewhat less affordability pressure relative to detached homes. However, the coverage is extremely limited: only one qualifying sale in the 1–3 bedroom range, plus two additional qualifying studio units when the dataset is expanded. All three affordable transactions were 0–1 bedroom units—none were family‑sized.

Attached Homes: Low Volume, Same Constraints

The attached segment contains only seven transactions, which reflects the full universe of attached 1–3 bedroom sales in Humboldt during this period. While the volume is low, these are all open‑market transactions, and the affordability pattern mirrors the broader constraints seen in the detached and condo segments. The average PABAI of 56.97 and zero qualifying sales reinforce the limited feasibility of ownership for 60% AMI households in this format.

Affordability Coverage and Market Implications

Across the full set of 94 open‑market 1–3 bedroom transactions in Humboldt, only one sale qualified as affordable at the 60% AMI benchmark—a coverage rate of 1.06%. Expanding the dataset to include studio condos increases the total to 96 transactions and three qualifying sales, raising the coverage rate to roughly 3%. All three affordable units were 0–1 bedroom condos; none were in the 2–3 bedroom range that aligns with Strong’s 54 family‑sized units. This pattern highlights a structural mismatch between Humboldt’s ownership inventory and the needs of 60% AMI households. Family‑sized homes—whether detached, attached, or larger condos—are effectively absent from the affordable ownership landscape, and even the most attainable options are limited to small, entry‑level condos. In this context, the Strong Family Apartments fill a critical gap by providing long‑term, income‑restricted, family‑oriented housing in a corridor where market‑rate ownership has become unattainable for moderate‑income households.

Plottage, Highest and Best Use, and Long‑Term Stability

Plottage and Assemblage Value

The site’s primary value driver is plottage—the incremental value created by combining multiple smaller tax lots into a single unified 0.96‑acre parcel. Prior to redevelopment, the Strong family’s holdings consisted of several fragmented lots occupied by a modest single‑family home and large areas of open grass, a clear underutilization in CM2 zoning, which is intended for medium‑scale mixed‑use and multifamily development along transit corridors.

Assemblage into one unified tax lot unlocked the development potential that individual parcels could not support. The combined footprint enabled a 75‑unit building with a central courtyard, family‑oriented amenities, on‑site services, and efficient circulation—elements that would have been infeasible or uneconomic on scattered lots. This is a textbook example of how public‑private coordination (PHB land banking and subsequent transfer) and zoning incentives (no parking minimums, height and floor-area ratio allowances) convert fragmented, low‑intensity land into a higher and better use.

Highest and Best Use Shift

Before redevelopment, the site’s highest and best use was not continued single‑family residential. While CM2 permits residential uses, the zone’s intent and incentives clearly favor denser multifamily or mixed‑use development on corridors like N Williams Avenue. Maintaining a single‑family home on nearly one acre represented a substantial underutilization of land value in an area with strong multimodal access and ongoing reinvestment.

The realized use—75 income‑restricted family units with courtyard amenities, bike parking, and resident services—aligns directly with CM2’s purpose. The project maximizes allowable density while securing long‑term affordability through a 99‑year regulatory agreement with PHB. The shift from low‑intensity residential to medium‑scale multifamily was made possible by assemblage, zoning compliance, and layered public financing.

Location Externalities

The Alberta/Williams corridor provides unusually strong positive externalities for income‑restricted households. WorkSource Oregon sits directly across N Williams Avenue, offering employment services, training referrals, and career support. Jefferson High School, KairosPDX, and PCC Cascade are all within a short walk or bike ride, creating a cluster of educational and youth‑focused resources. The corridor’s multimodal strengths—protected bike lanes, frequent transit, and walkable amenities—reinforce the project’s feasibility and support absorption for the target demographic.

Income Growth Retention and Long‑Term Stability

A defining feature of the project is tenant stability. Under federal LIHTC rules (the Next Available Unit Rule), households are not required to move out if their income rises after initial qualification. The 99‑year PHB regulatory agreement further ensures long‑term affordability, compliance, and adherence to the N/NE Preference Policy.

This structure supports upward mobility without displacement, stabilizes families over time, and aligns with anti‑displacement goals in N/NE Portland. By allowing residents to remain as their incomes grow, the project promotes continuity rather than churn—an important distinction in a corridor where market‑rate rents and ownership costs have escalated beyond reach for many moderate‑income households.

Takeaways

The Strong Family Apartments illustrate how targeted redevelopment can convert long‑term underutilization into meaningful community benefit. Through assemblage of multiple tax lots into a unified 0.96‑acre parcel, the site shifted from a modest single‑family home with expansive open space to a 75‑unit, family‑oriented affordable multifamily community. The project prioritizes the N/NE Preference Policy and incorporates a central courtyard, playground space, and SEI‑led youth, employment, and family‑stability services.

From an appraisal perspective, the development underscores the role of plottage in unlocking highest and best use. Combining fragmented parcels enabled the scale, density, and site planning required for medium‑scale multifamily in CM2 zoning, where incentives favor transit‑supported housing over low‑intensity residential. The result is a long‑term community asset serving moderate‑income families in a corridor where market‑rate ownership remains unattainable for many.

Long‑term stability is reinforced through the 99‑year affordability covenant and LIHTC’s income‑growth retention rules, which allow households to remain in place as earnings rise. This structure supports upward mobility without displacement and aligns with anti‑displacement goals in N/NE Portland.

In a neighborhood shaped by historical and ongoing pressures on housing access, the Strong Family Apartments demonstrate how zoning, public‑private coordination, and intentional design can preserve community ties while delivering durable affordability.

Sources & Further Reading

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Appraisal Brief: hollywoodHUB Brings 32 Three-Bedroom Affordable Units to Portland’s Hollywood Transit Center

hollywoodHUB delivers 126 family-sized affordable units—including 32 three-bedroom apartments—to Portland’s Hollywood Transit Center. Appraisal insights, market context, and what 30% AMI really means in a high-cost metro.

Wide aerial-style view of hollywoodHUB 12-story affordable housing construction site at Hollywood Transit Center, Portland – January 12, 2026, showing building scale and crane.
Wide view of hollywoodHUB construction at the Hollywood Transit Center, Northeast Portland – January 12, 2026. The full 12-story footprint and crane operations are visible on TriMet-owned land adjacent to the MAX station.
Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)

If you’ve driven I-84 through Northeast Portland in recent months, you’ve almost certainly noticed the new 12-story tower rising directly above the Hollywood Transit Center. From the freeway, it’s impossible to miss—cranes swinging, floors stacking, the structure already reshaping the skyline. But what exactly is being built there?

The answer is hollywoodHUB, a 224-unit (222 regulated affordable + 2 manager) transit-oriented development that will deliver one of the largest blocks of permanently affordable family-sized housing in recent Portland history—including 32 three-bedroom apartments in a building designed for dignity, not just density.

hollywoodHUB 12-story affordable housing tower under construction at Hollywood Transit Center, Northeast Portland – dramatic low-angle view showing scale and crane against blue sky, January 12, 2026.
hollywoodHUB under construction at the Hollywood Transit Center, Northeast Portland – January 12, 2026. The 12-story structure towers over NE Halsey Street, with the crane lifting materials as work continues on TriMet land.
Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)
Construction worker using drill on steel framing of hollywoodHUB affordable housing tower at Hollywood Transit Center, Northeast Portland – January 12, 2026 – skilled labor on upper scaffolding level.
Construction worker drills steel framing on an upper level of hollywoodHUB at the Hollywood Transit Center, Northeast Portland – January 12, 2026. Skilled tradespeople drive the daily progress of the 12-story affordable housing project, set for completion in Spring 2027.
Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)

Project Overview

hollywoodHUB is a 12-story building at 4110 NE Halsey St., directly integrated with the Hollywood Transit Center (MAX Red, Blue, and Green lines + multiple bus routes). Developed by BRIDGE Housing in partnership with TriMet (which owns the land via ground lease), the project broke ground in January 2025 and is targeted for completion in Spring 2027.

Total development cost is approximately $152 million—one of the largest single affordable housing investments by the Portland Housing Bureau (PHB) to date. PHB is contributing $45.4 million (from the 2016 Housing Bond and HOME-ARP funds), with additional support from Metro 2018 bond funds, Portland Clean Energy Community Benefits Fund (PCEF) grants for energy-efficient features (mini-splits, above-code insulation, EV charging), and $71.5 million in innovative tax-exempt bonds (a first for a nonprofit developer in this structure).

Unit mix (222 regulated affordable units):

  • 43 studios
  • 53 one-bedroom
  • 94 two-bedroom
  • 32 three-bedroom
Low-angle view of hollywoodHUB 12-story affordable housing facade under construction, showing curved corner and height at Hollywood Transit Center, Portland – January 12, 2026.
Low-angle view of hollywoodHUB’s rising facade at the Hollywood Transit Center – January 12, 2026. The curved corner and 12-story height highlight the project’s density and modern design.
Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)

The number of two-bedroom units and three-bedroom units total 126; making “family-sized” units ~57% of the building. The emphasis on family-sized units—particularly the 32 three-bedroom apartments—is a standout feature. Three-bedroom apartments in new affordable housing are rare in Portland; most projects skew heavily toward studios and one-bedroom units, with two-bedroom sometimes reaching 20–30% and three-bedroom typically under 10%. hollywoodHUB delivers a meaningful block of larger units in a high-opportunity, transit-superior node.

Amenities and services include:

  • Onsite resident services by Impact NW
  • Indoor play area, teen lounge, community rooms
  • Courtyard/paseo, bike storage
  • Energy-efficient systems (PCEF-funded)

The location is a true walkability/transit paradise: no car needed. Trader Joe’s is directly across NE Halsey Street. 24 Hour Fitness is adjacent. Providence Portland Medical Center, Hollywood Library, Hollywood Theatre, Grant Park, schools, senior center, and restaurants/shops along Sandy Blvd are all within a 5–10 minute walk. Direct MAX and bus access connect to the entire metro.

The project provides no resident parking (only 9 spaces for staff and service vehicles), a deliberate design choice for transit-oriented development on public land. For any residents who retain car ownership, parking will likely require walking blocks away—Trader Joe’s small surface lot is frequently full during the day, and street parking near the transit center is limited and often restricted. While many households at 30–60% AMI are expected to be car-light or car-free, any higher-than-anticipated car retention could place modest additional pressure on nearby residential streets, many of which are already covered by Residential Parking Permit zones.

Labeled aerial map of hollywoodHUB affordable housing construction site at Hollywood Transit Center, Portland – showing proximity to Trader Joe’s, 24 Hour Fitness, MAX station, Providence Health, Hollywood Library, Hollywood Theatre, and Grant Park.
Aerial view of the hollywoodHUB construction site at the Hollywood Transit Center, Northeast Portland (January 2026). The building is steps from MAX lines, directly across from Trader Joe’s and 24 Hour Fitness, and within a 5–10 minute walk of Providence Health, the Hollywood Library, Hollywood Theatre, Grant Park, and other amenities. This transit-superior location enables true car-free living for residents.
Via Google Maps
Hollywood MAX station platform adjacent to hollywoodHUB construction site, Northeast Portland – January 12, 2026, showing direct transit access
The existing Hollywood MAX station platform (Red, Blue, Green lines) directly adjacent to the hollywoodHUB site – January 12, 2026. The project’s location steps from high-frequency transit underscores its transit-oriented design.
Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)

Appraisal Implications

hollywoodHUB is a classic special-purpose, restricted-use property. Valued primarily via the income capitalization approach, it uses income-based rents (capped at ~28.5–30% of tenant income), high occupancy from waiting lists/subsidies, and cap rates adjusted downward from market-rate multifamily for lower risk and volatility.

Comparable sales are limited to other Low-Income Housing Tax Credit (LIHTC) / regulated affordable projects (scarce in Northeast Portland). Market-rate comps require deep discounts for functional and economic obsolescence from long-term affordability covenants (30–99 years), subsidy dependence, and limited buyer pool.

Appraisals are required (Oregon Housing and Community Services (OHCS) for LIHTC, bond underwriters) but focus on restricted/investment value to the developer/investor, not open-market hypothetical. Highest and best use for the TriMet-owned site is clearly regulated affordable transit-oriented development (TOD)—subsidies and public land enable 12-story scale that private market assembly would struggle to achieve.

Land value escalation (assessor data from Portland Maps) reflects redevelopment premium: $2.01M in 2023 → $5.25M in 2025, even pre-construction.

Neighborhood Market Context

The immediate Hollywood neighborhood has very limited recent sales of detached 2–3BR homes (only 14 over the period)—a very low number that reflects limited detached housing stock in the transit-hub area. To provide a meaningful local picture, the analysis incorporates the immediately adjacent neighborhoods of Rose City Park and Grant Park, which share the same transit access, walkability, and overall market profile.

Detached 2–3BR Homes – Combined Hollywood Node

Neigh / GroupAvg Close
Price		Avg PABAI (60% AMI)Avg Total SF# of SalesAvg Beds
Rose City Park$610,18147.042,0232842.68
Grant Park$785,17736.352,382912.82
Hollywood$573,85246.332,232142.79
Combined$649,81144.512,1143892.72
Data from RMLS pivot (last four years), limited to detached homes with 2 or 3 bedrooms. Hollywood had only 14 sales; adjacent areas provide context. Avg Total SF includes basements (avg 669 sq ft across the node). PABAI uses Fiscal Year (FY) 2025 HUD AMI at 60% ($74,460 for 4-person household, effective April 1, 2025), matching hollywoodHUB’s upper cap.

The Portland Appraisal Blog Affordability Index (PABAI) measures how the average close price compares to what a household at a given income level can qualify for under standard lending assumptions (e.g., 20% down payment, 28% debt-to-income ratio for principal, interest, taxes, and insurance). A PABAI of 100 means the market is exactly affordable at that income level. Values above 100 indicate excess qualifying capacity (more affordable), while values below 100 indicate a shortfall (strained affordability). For full methodology and the interpretation scale, see the PABAI explainer page.

PABAI RangeInterpretation
120+Strongly Affordable
100–119Moderately Affordable
80–99Strained
Below 80Severely Constrained

The combined PABAI of 74.19 at 100% AMI ($124,100 median family income) indicates a shortfall—even median-income households would require roughly $167,000 annual income to qualify for the average $649,811 home. At 60% AMI ($74,460, hollywoodHUB’s upper cap), PABAI drops to 44.51—typical qualification falls to less than half the average price. Of the 389 sales, only 36 (~9.3%) had PABAI ≥ 100 (excess capacity at 100% AMI); at 60% AMI, that drops to just 2.

While condominiums exist as a smaller-share ownership option in the area, the three-neighborhood node has little condominium inventory and detached homes remain the dominant preference for family-sized living.

What $37,250 Really Means—and How hollywoodHUB Changes It

The 71 units at or below 30% AMI target households earning no more than approximately $37,250 annually for a family of four (FY 2025 HUD Portland MSA figure). The 2025 federal poverty guideline for a family of four is $32,150. These families are living just above the poverty line in one of the country’s higher-cost metros.

After essential non-housing expenses—food, childcare, transportation, healthcare, utilities—very little remains for rent. A sustainable 30% burden leaves roughly $900–$1,000 per month total (rent + utilities). Market-rate 2–3BR apartments in Northeast Portland often exceed $2,000–$3,000/month, and detached homes average $4,207/month in PITI costs.

The result is often overcrowding, instability, and loss of dignity: multiple families or unrelated adults sharing small units, children without private bedrooms, constant moves to avoid eviction, skipped medical care or school activities to make rent. Privacy, quiet study space, and a sense of home become luxuries.

hollywoodHUB changes that equation. This is not shoddy or bare-bones housing. The 12-story building by Holst Architecture features energy-efficient design (PCEF-funded), modern finishes, onsite resident services through Impact NW, indoor play areas, teen lounge, courtyard, bike storage—and direct integration with the Hollywood MAX station.

Most powerfully, families in these units will live across the street from Trader Joe’s and a 24 Hour Fitness, steps from the MAX Red/Blue/Green lines, blocks from Providence Hospital, the Hollywood Library, and the historic Hollywood Theatre. For a family earning $37,250, this level of access—to fresh groceries, fitness, healthcare, education, culture, and transit—is nearly incomprehensible in Portland’s current market.

The 32 three-bedroom units (plus 94 two-bedroom) provide real space—likely 1,000–1,300 sq ft, private bedrooms, separate living/kitchen areas—at rents families can actually pay. This isn’t just shelter; it’s the restoration of dignity, stability, and opportunity for larger families who have been priced out of the city they call home.

24 Hour Fitness building directly across the hollywoodHUB construction site, Hollywood Transit Center, Portland – January 12, 2026.
24 Hour Fitness directly across the hollywoodHUB construction site – January 12, 2026. This major amenity, along with Trader Joe’s and other nearby services, exemplifies the opportunity-rich environment for residents.
Photo: Abdur Abdul-Malik, Portland Appraisal Blog
Historic Hollywood Theatre facade and marquee in Northeast Portland – January 12, 2026, showing ornate architecture and current film programming.
The historic Hollywood Theatre (1926), just a short walk from hollywoodHUB along NE Sandy Blvd – January 12, 2026. This landmark cultural hub adds to the walkable, amenity-rich environment for residents.
Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)
Hollywood Library entrance in Northeast Portland – January 12, 2026, showing modern brick building and curved glass canopy.
The Hollywood Library, a central community resource just a short walk from hollywoodHUB – January 12, 2026. This modern branch offers books, programs, and gathering spaces for residents and families.
Photo: Abdur Abdul-Malik, Portland Appraisal Blog (CC BY-SA 4.0)

Income Restrictions, Rent Mechanics, & Broader Implications

hollywoodHUB caps all 222 regulated units at 60% AMI ($74,460 for a 4-person household), with 71 units at ≤30% AMI ( $37,250). Rents are income-based (~28.5–30% of adjusted gross income + utilities allowance). A family of four at 30% AMI pays roughly $900–$1,000/month total.

The 55 units with Project-Based Section 8 vouchers (PBV) are especially significant. These federal subsidies are tied directly to the units—the Portland Housing Authority pays most of the rent directly to BRIDGE Housing, allowing families with very low or no income to live there while paying only ~28.5–30% of their adjusted gross income. This removes the risk of rent burden exceeding income and ensures stability even for the most vulnerable households. Other units may qualify for additional supports (e.g., state LIFT program, PHB incentives), but PBV is the backbone for the deepest affordability tier.

The generous public investment—including $45.4 million from the Portland Housing Bureau—funds high-quality construction, energy-efficient systems, and resident services that create a stable, dignified home environment for families who would otherwise face overcrowding or displacement.

Takeaway

hollywoodHUB is one of several significant affordable housing projects currently under construction or recently completed in the Portland Region as the city works to counter the inherent unaffordability of traditional detached homeownership for moderate- and lower-income households.

Even at the full area median income of $124,100 (FY 2025, 4-person household), the average detached 2–3BR home in the Hollywood node requires roughly $167,000 in annual income to qualify—well beyond what most families can sustain. At 60% AMI ($74,460, hollywoodHUB’s upper cap), the gap widens dramatically (PABAI 44.51), and at 30% AMI ($37,250), market ownership is simply out of reach.

Projects like hollywoodHUB, with its 126 family-sized units (including 32 three-bedroom apartments), layered subsidies, and transit-superior location, represent a deliberate policy response to this reality. Similar efforts include:

  • The Julia West House supportive housing tower, which recently opened to provide deeply affordable units with onsite services.
  • The Alberta Alive townhomes, rising opposite the historic Alberta Abbey as infill in a culturally rich corridor.
  • The Barbur Apartments groundbreaking, which highlighted plottage value in redevelopment along a key transit corridor.

These initiatives—while different in scale, target population, and financing—share a common thread: using public or acquired land, incentives, and creative partnerships to deliver housing that the private market alone cannot produce at accessible price points. As more projects come online, they will continue to reshape affordability, highest and best use assumptions, and neighborhood stability in the Portland metro area.

Sources & Further Reading

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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 Real Estate Weekly Appraisal Digest – December 21st – December 27th, 2025: Affordability Barriers and Tax Shifts

A vibrant sunset casts warm orange and pink hues over the Willamette River in downtown Portland, Oregon. In the foreground, the green steel arches of the Hawthorne Bridge span the calm water, while the city's skyline—featuring prominent high-rise buildings with distinctive architectural elements—rises against the colorful sky. Trees line the riverbank, adding a touch of greenery to the urban scene.

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.

Table of Contents

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.

Week’s Blog Posts & Further Reading Links

Closing Remarks

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.

Decorative text divider.

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.