Portland

Restoring the Reputation of Downtown Portland

Wendell Cox — Wed, 21 May 2025 17:02:08 -0400

The Wall Street Journal reported on May 20 that “Big Pink,” the 42-story pink skyscraper in downtown Portland (photo below) had been offered for sale for a price 80% below what the present owners paid for the building ten years ago.

U.S. Bancorp Tower, a.k.a. "Big Pink" in Portland, Oregon. Source: Cacophony, via Wikimedia under CC 3.0 License.

The Journal repeated criticisms of downtown Portland in an article entitled “A Fire Sale of Portland’s Largest Office Tower Shows How Far the City Has Fallen,” with the following subtitle: “The once-premier building is now over half empty, reflecting how the Oregon city’s downtown is struggling with crime and other quality-of-life issues.”

The Journal reported that downtown Portland has the highest office vacancy rate of any of the nation’s 25 largest central business districts. Former tenant Digital Trends said that it left because the building was afflicted with “vagrants sleeping in hallways of vacant office floors” and that they were “starting fires in stairwells, smoking fentanyl and defecating in common areas” These allegations were contained in the Digital Trends lease termination lawsuit.

Digital Trends’ added that Big Pink became a “cesspool of criminal activity and vandalism.”

Big Pink had been built for US National Bank four decades ago. US National is in the process of leaving the building. The Journal article noted that a number of firms have moved out of Portland, which before the pandemic was considered to be among the most favored of cities among urban planners.

New Portland Mayor Keith Wilson is considered to be pro-business. Downtown newspaper, Willamette Week reported that the Mayor responded in an email to constituents: “I wish they’d covered our rapid improvements in public safety, new residents, business opportunities, regional destinations, and creatives,” Wilson wrote. “Instead, they focused on the upcoming sale of ‘Big Pink,’ an iconic part of the Portland skyline, and a business tenant who left over safety and livability concerns.”

The Mayor (who was not Mayor when the problems were the worst) is right to be concerned. Restoring a reputation for central city safety is difficult, as decades of less than desirable results have shown around the country. We wish him well.

Wendell Cox is principal of Demographia, an international public policy firm located in the St. Louis metropolitan area. He is a Senior Fellow with Unleash Prosperity in Washington and the Frontier Centre for Public Policy in Winnipeg and a member of the Advisory Board of the Center for Demographics and Policy at Chapman University in Orange, California. He has served as a visiting professor at the Conservatoire National des Arts et Metiers in Paris. His principal interests are economics, poverty alleviation, demographics, urban policy and transport. He is author of the annual Demographia International Housing Affordability Survey and author of Demographia World Urban Areas.

Mayor Tom Bradley appointed him to three terms on the Los Angeles County Transportation Commission (1977-1985), which was a predecessor agency to the Los Angeles County Metropolitan Transportation Authority (Metro). Speaker of the House Newt Gingrich appointed him to the Amtrak Reform Council, to complete the unexpired term of New Jersey Governor Christine Todd Whitman (1999-2002). He is author of War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life and Toward More Prosperous Cities: A Framing Essay on Urban Areas, Transport, Planning and the Dimensions of Sustainability.

WSJ Editorial: How Politics Created the Oregon Housing Shortage

Wendell Cox — Mon, 06 Jan 2020 11:24:33 -0500

A January 5, 2020 Wall Street Journal editorial examines Oregon’s housing affordability crisis. The editorial, “The Housing Shortage in Profile: Construction in Oregon dropped to the lowest level since World War II” not only describes the immediate consequences of Oregon’s recently enacted land use regulations but also provides the four decade context that has done so much damage to its middle-class. Oregon’s median house prices have generally at least doubled relative to household incomes since 1990.

A couple of excerpts follow:

“Politicians bemoan the lack of affordable housing, but their policies often create the problem. Look no further than Oregon, where restrictive zoning and mandates have yielded the lowest rate of residential construction in decades.

“Oregon’s land-use rules have been dysfunctional for decades. In the 1970s lawmakers worried about sprawl imposed strict limits on urban expansion. These urban growth boundaries have failed to adjust sufficiently to growing populations, choking residential development despite high demand. Rising housing prices are the inevitable result of this government-imposed scarcity."

Read the entire piece here: Wall Street Journal.

Portland Columnist Calls for Abandonment of the WES Commuter Rail Line

Wendell Cox — Thu, 28 Jul 2016 22:12:21 -0400

Portland Tribune columnist (see "My View: WES is a Mess: Time to Pull the Plug") Bill MacKenzie took the occasion of a Tri-Met (transit agency for the Oregon side of the Portland, OR-WA metropolitan area) approval to purchase two used Budd Rail Diesel Cars (RDC) for the Wilsonville to Beaverton commuter rail line to call for its abandonment.Fconcl In addition to the $1.5 million purchase cost, $550,000 will be required for refurbishment. When then are ready for service, they will surely older than most Tri-Met employees, since the last Budd RDC's were built in the early 1960s.

He mocks the agency's general manager, Neil MacFarlane, who justified the purchase as necessary to accomodate future passenger growth: "Oh sure, plan for massive ridership growth,"MacKenzie scoffs. He continues, In early 2009, TriMet predicted WES would have 2,400 daily riders its first year of operations and 3,000 by 2020." In 2015, the line carried fewer than 1,900 riders each weekday, and its cost per boarding was more than four times that of buses (not counting capital costs).

He concluded that: "Even if WES reaches 3,000 average daily boardings, operating costs per boarding ride will remain much higher than for buses and MAX. The fact is, WES is a train wreck. It’s time to shut it down."

Portland Light Rail Revolt Continues

Wendell Cox — Wed, 12 Mar 2014 12:28:59 -0400

In a hard fought election campaign, voters in the city of Tigard appear to have narrowly enacted another barrier to light rail expansion in suburban Portland. The Washington County Elections Division reported that with 100 percent of precincts counted, Charter Amendment 34-210 had obtained 51 percent of the vote, compared to 49 percent opposed.

The Charter Amendment establishes as city policy that no transit high capacity corridor can be developed within the city without first having been approved by a vote of the people. High capacity transit in Portland has virtually always meant light rail.

In a previous ballot issue, Tigard voters had enacted an ordinance requiring voter approval of any city funding for light rail. Similar measures were enacted in Clackamas County as well as King City in Washington County. Across the Columbia River in Clark County (county seat: Vancouver), voters rejected funding for connecting to the Portland light rail system. After the Clackamas County Commission rushed through a $20 million loan for light rail (just days before the anti-light rail vote), two county commissioners were defeated by candidates opposed to light rail, with a commission majority now in opposition.

Further, a Columbia River Crossing, which would have included light rail to Vancouver was cancelled after the Washington legislature declined funding. In a surreal aftermath, interests in Oregon seriously proposed virtually forcing the bridge on Washington, fully funding the project itself. A just adjourned session of the Oregon legislature failed to act on the proposal, which now (like Rasputin) appears to be dead.

At the same time, Portland's transit agency faces financial difficulty and has been seriously criticized in a report by Secretary of State. The agency has more than $1 billion in unfunded liabilities and carries a smaller share of commuters than before the first of its six light rail and commuter rail lines was opened. Moreover, the latest American Community Survey data indicates that 3,000 more people work at home than ride transit (including light rail and commuter rail) to work in the Portland metropolitan area. Before light rail (1980), transit commuters numbered 35,000 more than people working at home. Over the period, transit's market share has dropped one-quarter.

The Limits of Portland's Craft Economy

Jason Sibert — Tue, 04 Mar 2014 20:50:31 -0500

Charles Heying, the author of Brews to Bikes: Portland’s Artisan Economy, covers Portland’s indie fashion, book and music sector, its recycling/reuse businesses, craft businesses, bike sector, technology businesses and non-profits.

His thesis is that Portland represents a return to the craftsmanship that defined the pre-industrial age. Heying mostly denies that the artisan economy produces high-end goods for a limited market, and sees it as a broader shift in our society away from mass production. A critic of Richard Florida’s theories, he denies that cities should make cosmetic changes to attract well educated professionals. Instead, he sees the artisan economy as something that emerges from below, rather than imposed from above by local officials.

But there are some problems with this thesis. Portland has many coffee roasters, but it also has many Starbucks. Silicon Forest, Portland’s tech hub, includes IBM, Intel and Techtronics. None of these firms are small, artisan firms. There are indie designers in Portland but Nike and Columbia Sportswear and Adidas also call Portland home. Sure, twelve percent of people in Portland bike, but that means a lot rely on the car as a primary mode of transportation. And only twelve percent of the beer consumed in Portland is craft beer. If 'small is beautiful' really defines this city, then why are there so many big companies lurking around?

Artisanal enterprises come along with the advancement of information technology, but will in no way replace mass production. I don’t think there will be many small-scale train, airline or automobile companies. The mini-economy represents a side of us that doesn’t want the creative impulse to die, and wants a more socially responsible model, but it won’t shove aside the big model anytime soon.

Portland’s Transit Halcyon Days?

Wendell Cox — Mon, 29 Jul 2013 16:08:11 -0400

For more than a quarter century, the leaders in the Oregon portion of the Portland metropolitan area have sought to transfer demand for urban travel from automobiles to transit. Six rail lines have been built, five of which are light rail and bus service has been expanded. If their vision were legitimate, transit’s market share should have risen substantially and automobile travel should have declined. Neither happened.

The results have been modest, to say the least. Since 1980, before the first rail line was opened, transit’s share of work trip travel in the metropolitan area has declined by one-quarter, from 8.4 percent to 6.3 percent. Overall, the share of travel by car remains about the same as before the first light rail line opened (based upon data from the Texas Transportation Institute and the Federal Transit Administration).

Transit access to destinations outside downtown Portland remains scant. Despite the huge expenditures on transit, only 8 percent of the jobs in the metropolitan area can be reached by the average employee in 45 minutes, despite the fact that nearly 85 percent of workers are within walking distance of the transit stops or stations. Portland’s transit access is better than the national major metropolitan average of six percent. But Portland trails a number of other metropolitan areas and is well behind the best, Milwaukee, Wisconsin, which has a transit access figure of only 14 percent. This makes a mockery of the “transit access” measure used by many planning agencies. Being close to a transit stop or station is of little help if service to the desired destination is not available or takes too much time.

According to the latest American Community Survey data, the average work trip by people driving alone in Portland is 23.6 minutes, while the average transit commute trip is 43.8 minutes.

Further, Portland transit users could face draconian service reductions. Tri-Met, which operates light rail and most Oregon services, has warned that it may be required eventually to cut 70 percent of its service. This results from the failure to control labor costs, particularly pension costs, which is detailed in an Oregonian article. John Charles, president of the Cascade Policy Institute found that $1.63 all the benefits were being paid out for every dollar of wages, a claim confirmed by PolitiFact. The concern extends to the state capital, where the legislature has overwhelmingly approved a bill requiring an audit of Tri-Met by the Secretary of State.

Tri-Met continues to expand light rail, but with some “pushback.” An under-construction line to Milwaukie evoked such controversy in Clackamas County, that voters elected an anti-light rail majority to the county commission. Voters have banned light rail expenditures without a public vote in the suburban municipalities of Tigard and King City. Clark County (Washington), voters rejected funding for a light rail connection to the Portland system. This opposition was at the heart of defunding a replacement Interstate 5 bridge over the Columbia River. The project recently closed after spending $175 million (see Project Closing Notice).

With the investment and expansions, these should have been the halcyon days of transit in Portland. The future could be even more challenging.

Leaving Portlandia

Jennifer Wyatt — Tue, 07 May 2013 14:38:09 -0400

There have been two universal reactions to my announcement that I was going to move from Portland to the Midwest: surprise and disbelief. But I also found a number of people who, if given a few moments to find clear and honest footing in the conversation, could see through the self-absorbed mental fog that covers the city in equal measure to the grey rain clouds and tells its inhabitants every day that Portland is the most amazing possible place in this country to live. The amount of media devoted to reinforcing this idea is overwhelming in the sense that I believe it has overwhelmed people’s ability to have their own thoughts and identity in Portland. Instead they have a Portland identity…because they live in Portland and that is what defines them.

On the surface, Portland has many progressive aspects. Sustainability and the “greening of the city” stand front and foremost as two easily recognized. Curbside recycling and composting, increasing investment in bicycle transportation, native gardening, and urban farming. There is an intense concentration of a wide range of alternative health practitioners. Artisan craftspeople abound, creating specialty foods and other handcrafted products. “Shop local” is the resounding cry to support small businesses, and farmers markets adorn every neighborhood in the summertime.

Idyllic as this sounds, there is a less appealing aspect to this picture. As Portland concentrates is cultural practices into a few baskets, the proliferation of other ideas diminishes. Ten years ago I would have characterized Portland as a place that had progressive perspectives. Now I would characterize Portland as a place with few ideas, all perpetually reinforced and more deeply ingrained every day. People regurgitate a handful of versions of the same thoughts in ever narrowing expressions. Everywhere you look it is repetition of the same ideas, whether it be on politics, design, or social culture. People strive to look the same, to dress the same, and to have the same lifestyle. It is so pervasive, that women within a 30 to 40 year age range may display similar choices in hair, dress, and accessories. What began as a city with progressive and forward looking ideas to develop a new urban course has become a closed container of cultural conformity. There is a new cookie cutter in Portland, and it is young, alterna-hip, and white.

I grew up in a place like this…it is called Orange County.

Sweeping shocked gasps aside, this comparison is worth a long pause to consider. Stripping away the key difference between Multnomah and Orange County of political affiliation, with Orange County being a historic Republican stronghold and Portland staunchly Democrat, these two counties have some key cultural similarities all hinging on a pivotal word used above: conformity. Conformity of dress, thought, and mannerisms, shared ideas and ideals, and a strong attitudinal belief that there is a “right” or “correct” way to be and to appear to others. There is also limited interest or investment in the arts, creative, innovative, or intellectual development. Just because the surface ideals these two places seem extremely different from each other, does not mean that they don’t breed the same obedience to a self-referencing norm within themselves. And by perpetuating their particular cultures and tailoring their environments to fit with a narrow range of ideals, the inhabitants of these areas increasingly live on the margins of reality and instead inhabit a fabricated cocoon of their own self-rewarding design.

What disturbed me most about Portland in the months leading up to my decision to leave was the increasingly strong social culture of invisibility. I am referring to the tendency of people in Portland to not acknowledge the physical presence of other people around them in close proximity. This can easily be seen by the increasing tendency of people to brush past you without making eye contact or saying “excuse me” and instead being intensely focused on some spot just beyond your left shoulder. But it manifests in countless other ways: letting dogs off leash (and not picking up after them), ignoring red lights and stop signs, allowing children license to act out without discipline in the presence of other adults.

In this city where conformity to a particular identity is so strong, people no longer see each other as people. People come in and out of your field of vision as an object to be ranked according to usefulness to you, and invariably avoided, ignored and dismissed the majority of the time. It is unpleasant, unsettling and dehumanizing. The countless tiny social interactions we have with other people throughout the day are the glue that hold us together as a community and keep us from being automatons randomly bumping into one another like the balls in a pinball machine. This critical stickiness in Portland is dissolving rapidly. As people lose the ability to engage and connect with one another, there appears to be an increasingly growing level of resentment, frustration and anger brewing under the surface of social interactions. Not just interactions where overt conflict is involved, but all of them. Because it feels like they all contain some level of conflict just by the occurrence of people being together in a place, time and circumstance.

There is little likelihood that I would ever have been physically assaulted in Portland. But I think there is a pretty strong likelihood that if I were physically assaulted that no one around me would react or get involved or help. Because chances are, I wouldn’t even be seen.

When confronted with difficult situations or challenging environments, often it is heard “it’s the people that keep me here…keep me working, living, etc. in this place despite its shortcomings”. In Portland, the situation is reversed….the environment is being made increasingly pleasant and comfortable, but it is the people that make it so difficult to live there.

Read Jennifer Wyatt’s blog about her cross country move at isaymissourah.wordpress.com.

Portland's Slothful Creative Class?

Wendell Cox — Sun, 24 Mar 2013 00:57:43 -0400

In an article entitled "Portland area's college-educated workers depress metro earning power by choosing low-paying fields, shorter hours," The Oregonian's Betsy Hammond reports on a new study decrying the less than robust economic impact of Portland's younger college graduates, especially males. According to Hammond, " the Portland metro area's young college-educated white men are slackers when it comes to logging hours on the job, and that's one reason people here collectively earn $2.8 billion less a year than the national average." The report is characterized as finding that "Portlanders tend to choose majors, careers and work hours that lead to low pay."

The report, "Higher Education & Regional Prosperity; The Story Behind Portland-Metro's Income Decline," was commissioned by the Value of Jobs Coalition. It documents a "startling decline in per capita income relative to the US" metropolitan average. Since 1997, metropolitan Portland's per capita income has fallen from 5% above the national metropolitan average to 5% below.

The report indicates that "the biggest driver of this trend is our college educated workers, who work less and earn less, creating a significant income gap," though cautiously notes that it is not clear whether” the lower hours and earnings are the result of a lack of higher-paying/time-intensive jobs available or the result "life style choice(s)" to not work in higher-paying jobs."

The report found the largest differences compared to other metropolitan areas to be among white males from 25 to 39 years old. The differences with the rest of the country were substantially less among older white males.

Election: "Stop Portland Creep" Resonates in Suburbs

Wendell Cox — Fri, 09 Nov 2012 23:02:15 -0500

Election results from all three of Portland, Oregon's largest suburban counties indicate a reaction against what has been called "Portland Creep," the expansion of the expansive light rail system without voter approval and the imposition of restrictive densification measures by Metro, the regional land-use agency.

Portlanders in the three largest Oregon counties (Multnomah, Washington and Clackamas) have previously voted against financing light rail extensions, however the transit agency has found ways to continue the expansion and now operates five lines, with a sixth under construction. While urban rail aficionados tout the success of the Portland system, transit use by commuters has fallen significantly in relative terms from before the opening of the first light rail line. At the same time, working at home, which does not need billions in taxpayer subsidies, has caught up to and passed transit (Figure).

The electoral events of the past 60 days could severely limit future expansion.

Clackamas County: Chicanery and its Price

In a September 2012 election, voters in Clackamas County approved a measure by a 60% - 40% majority requiring that any commitment of funding to rail would require a vote of the people. Perhaps fearing a negative result in the election, the pro-rail Clackamas County commission hastily approved $20 million to support the under construction Portland to Milwaukie (Clackamas County) light rail line.

Things were to become substantially more difficult for light rail in the November election. In Clackamas County, the two incumbent commissioners on the ballot, both of whom voted for the $20 million bond issue, lost their seats. Voters rewarded their chicanery by replacing them with anti-rail commissioners, leaving the Clackamas County commission with a 3 to 2 anti-rail majority. The Oregonian characterized the election as "a referendum on light rail."

John Ludlow, who defeated Clackamas County commission chair Charlotte Lehan by a 52% to 48% margin, told The Oregonian:

"I think the biggest boost my campaign got was when those commissioners agreed to pay that $20 million to TriMet" for Portland-Milwaukie light rail four days before the September election. I think that put Tootie and me over the top."

"Tootie" is Tootie Smith, a former state legislator who unseated commissioner Jamie Damon in the same election by a similar margin.

Washington County, Oregon: Taxpayers Take Control

Meanwhile, light rail has run into substantial difficulty in suburban Washington County. In September, voters in King City approved a measure to require all light rail funding to be approved by the voters. In the more recent November election, voters in Tigard, the 6th largest city (50,000 population) in the metropolitan area, voted 81%-19% to subject all light rail expenditures to a vote of the people.

Clark County, Washington: Voters Say No

Portland's transit agency also had its eye on expanding light rail service across the state line and the Columbia River to Vancouver, in Clark County, Washington. The plan was to build a new "Interstate Bridge" (Interstate 5) across the river, which would include light rail. The voters of Clark County were asked in a referendum to approve funding for the light rail system and turned it down soundly according to the Columbian, by a 56% – 44% margin.

But there was more. For some time, citizen activist and business leader David Madore has been working to stop both tolls on the new bridge and light rail service. Madore was elected to the board of commissioners of Clark County at the same time that the light rail referendum was being defeated. Madore, like the two other Clark County commissioners, also hold seats on the transit agency board.

Tri-Met's Death Spiral?

Further, Tri-Met's dire financial situation could be another barrier to future expansion. As John Charles of the Cascade Policy Institute has shown, Tri-Met's fringe-benefit bill is astronomically high, at $1.63 for each $1.00 in wages. This is more than five times the average for public employers, according to US Department of Commerce Bureau of Economic Analysis data. Charles refers to Tri-Met as being in a "death spiral" and says that:

"The agency is steadily devolving from a transit district to a retirement and health-care center, with unsustainable fringe benefit costs that now far exceed the mere cost of wages."

Portland Mixed-Use Condo Converts to Rentals, Mixed Use Nixed

Wendell Cox — Fri, 29 Jun 2012 16:56:21 -0400

The Oregonian reports that suburban Hillsboro's first mixed use condominium development is no more. Washington Street Station, was built near the suburb's small but historic downtown (see Note on Hillsboro).

The project was opened in 2009, one block from the Hillsboro Central station on Portland's Max (photo) light rail line. The four floor building, located in a generally low-rise residential area with detached housing, was to have had commercial development on the street floor and owner occupied condominiums on the top three floors. But the market was not there. As 2012 began, none of the 20 units had been sold.

At that point, new owners decided to convert the condominiums to rental units and to convert the first floor commercial space into apartments as well.

Local planning officials indicate no concern about converting the condominium development to rental units, or the loss of the first planned mixed use development in the city. The Oregonian article indicates, however, that a soon to be built development, located just blocks away, will be required to remain mixed use for at least 30 years.

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Note on Hillsboro: Hillsboro is typical for a mid-20th century exurb that has been engulfed by the expansion of a growing urban area. In 1950, the Portland urban area had a population of 500,000 (density 4,500 per square mile or 1,750 per square kilometer ), and Hillsboro was a compact exurb with less than 5,000 population, located outside the urban area. Today, the Portland urban area has approximately 1,850,000 residents (density 3,500 per square mile or 1,350 per square kilometer). Hillsboro, which is inside the urban area has more than 90,000 residents, most of whom are beyond walking distance from downtown and have much more convenient access to the big box stores (including the claimed largest "Costco" in the world), shopping centers and strip malls that do most of the retail business. Hillsboro is also the heart of "Silicon Forest" with its information technology manufacturing (such as Intel). As a result, the jobs-housing balance in Hillsboro now exceeds that of Portland according to 2010 American Community Survey data (1.48 jobs per resident worker in Hillsboro compared to 1.45 in the city of Portland).