Portland city officials have hired a national consulting firm to review the city’s 10-year-old inclusionary zoning ordinance amid growing criticism from developers who contend the requirements are contributing to stalled housing projects.
The Planning and Urban Development Department selected CZB LLC earlier this month to conduct a comprehensive analysis of the ordinance, which currently requires 25 percent of units in new developments to be designated “workforce housing,” affordable to households earning up to 80 percent of the area median income.
The review is funded by a $50,000 Housing Opportunity Program grant from the state.
City planning officials have said the study will assess how the ordinance has performed and whether adjustments could better help Portland meet its housing goals. The findings are expected in early 2026 and will be presented to the City Council for further consideration.
Developers have been among the most vocal critics of the strengthened mandate, arguing that the 25 percent requirement, combined with high interest rates and rising construction costs, has made many projects financially unworkable.
Jonathan Culley, managing partner at Redfern Properties, said regulatory costs, including the inclusionary zoning requirement, are among the few expenses city officials can directly control. He noted that several projects, including a development on Washington Avenue, have stalled under current conditions.
“It would cost us $15 million to the city right off the bat,” Culley said of one proposed project, reflecting broader concerns that few new developments are breaking ground under the existing rules.
Supporters of the policy say inclusionary zoning is intended to increase affordable housing supply, while critics say it can deter construction without significantly increasing overall housing production.
City officials emphasize that the current review does not automatically signal changes, but rather seeks data to inform future policy discussions.
