Portland Oregon - Lessons in “Smart Growth”

Portland instituted stringent “Smart Growth” laws in the mid 1970’s and remains the “Smart Growth” capitol of the United States. Also, during the 1990’s Portland spent millions of dollars on mass transit rail systems in an attempt to reduce congestion. While “Smart Growth” advocates hail Portland as a great victory for their cause, a closer look at the facts show what a disaster Portland’s experiment really is.

Housing Affordability Plummets: In 1979 Portland instituted urban growth boundaries which were drawn to include enough vacant land for an estimated twenty years' worth of growth. By 1990, most vacant land was developed and land prices were rising. Although planners added a small amount of land, they decided to accommodate most growth by re-zoning existing neighborhoods and urban open spaces to permit higher density developments. Such zoning is producing high apartment vacancy rates, while single-family home prices have skyrocketed. In 1989, Portland was one of the most affordable U.S. housing markets; since 1996, it has been one of the five least affordable.

From 1991 (earliest available data) to 2000, Portland’s Housing Opportunity Index declined 51.8 percent (from 68.3 to 32.9). Over the same period of time, as the economy has boomed, housing affordability in the other major metropolitan areas has increased 13.5 percent, from 56.9 to 64.6. Portland has become the least affordable major metropolitan area outside of California and less affordable than Los Angeles. Metropolitan areas with similar household income trends experienced an increase of 28.5 percent in housing affordability, compared to Portland’s 51.8 percent decline. Portland is among the highest population growth metropolitan areas. Other high growth metropolitan areas experienced a housing affordability increase of 14.3 percent, compared to Portland’s decline of 51.8 percent.

Congestion “Out of Control”: While Portland spent millions of dollars during the ‘90’s on mass transit rail system in an attempt to stop congestion, their congestion is now one of the worst in the country. According to the Texas Transportation Institute‘s 2002 survey, Los Angeles also has the greatest percentage increase in congestion since 1982, followed by Minneapolis-St. Paul, another city that has added mass transit rail systems, and Portland. Even the Real Estate firm Moving To Portland says “Experts say the fact that the numbers don't look worse reflects a natural coping mechanism: Frustrated by traffic, commuters have moved closer to their jobs.” Portland’s official Metro planners predict that the number of miles of congested roads will more than triple in the coming years.

Outside of downtowns, high-density, transit-oriented developments are difficult to market, so developers won’t build them without significant subsidies. Portland has given developers hundreds of millions of dollars in subsidies in the form of tax breaks, infrastructure support, and direct grants. Once built, so-called transit-oriented developments merely add to congestion because the vast majority of trips made from the developments are still by automobile.

Portland-area residents voted in 1992 to give Metro these planning powers on the promise that it would save Portland from becoming like Los Angeles, arguably the most congested city in America. Los Angeles also has the nation's worst air, densest metropolitan area and among the fewest miles of freeways per capita. But after reviewing statistics for 50 major U.S. urban areas, Metro concluded that Los Angeles "displays an investment pattern we desire to replicate" in Portland.

Planners are turning Portland into the congested, polluted, high-cost place citizens thought they were voting to avoid. Portland provides a lesson for city officials elsewhere: Smart Growth is the sensible policy only if their goal is to turn their cities into Los Angeles. In 2004 the residents of Portland started to fight back when they passed a referendum taking away some of Metro’s ability to further densify residential neighborhoods.

Housing Affordability Declines Precipitously in Portland

City Officials Don’t Want to Solve Congestion

Spending Billions to Create More Congestion

Portland: Smart Growth’s Bad Example

Portland Becomes Less Affordable than Los Angeles

Portland Chooses to Create Gridlock: Less Livability Assured

Curing Seattle’s Portland Envy

Portland's Sprawling Area Opposite of Reputation

Much more data about Portland from Demographia

The case against Portland-style smart growth

Commuting to Work in Portland

Portland Not Sprawl Free

Portland's Ballooning Urban Growth Boundary: A Chartbook