Brian Campbell//April 23, 2015//

As I noted in my last post, good urban planning starts with a regional concept that, based on the best information available, has the greatest chance of achieving a high quality of life for its residents over the long term. The Portland Metro region made a choice 20 years ago to accommodate growth by building at higher densities rather than spreading out onto valuable farmland (see oregonmetro.gov).聽 Every jurisdiction in the region has created regulations to guide the development process toward that end.
But local governments have a very limited role in actually building that future.聽 The private market develops property using the regulations as a baseline, but in most areas has great latitude about the final product.聽 With few exceptions the private market builds and owns housing. Local governments have very limited tools to help create or preserve housing that is affordable to the vast majority of their residents.聽 聽The only legal way for them to influence the housing market at present is to reach an agreement with a developer in redevelopment areas to provide lower-priced units in exchange for something they value, like allowing more units overall.聽 They cannot require affordable units.聽 (That may change soon, though, if an 鈥渋nclusionary zoning鈥 bill passes in the Oregon Legislature.)
Likewise, cities can do very little to maintain housing affordability.聽 The bottom line is that gentrification is basically a natural result of the private real estate market.
Portland has made the most of its limited tools to keep some housing affordable. Good planning can help by controlling where and how many new units are built while also placing reasonable limits on redevelopment.聽 But in our private market based system, it is essential to understand the limits of government to dictate the exact outcome. 聽Placing blame on government for issues like affordable housing is to misunderstand the way the private market works.