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The affordable housing landscape is shifting, with unmistakable signs of a slowdown locally and nationwide. As and demand intensifies, architects, developers and communities face a critical moment to meaningfully design, develop and deliver the safe, high-quality housing that communities need and deserve. Across Oregon, demand is shifting toward workforce housing for households earning 90-110 percent of the area median income (AMI) who want to live near their jobs, while the need for deeply affordable units at 30 percent of AMI also remains critical.

Funding shifts shape the market

Affordable housing development funding is moving from reliance on previous years’ metro bonds, which have dried up, to some developers obtaining Standard & Poor’s (S&P) ratings, which have provided them with better access to capital markets and related benefits. When affordable housing bonds receive an AA rating, they become more attractive to investors, offering numerous financial benefits. Some projects are also eligible for tax credits, and it’s critical for those serving this space to stay ahead of legislation and building codes that can drive the transformation of affordable housing.

Policy innovation creates opportunities

Oregon’s passage of in 2024 represents a significant policy shift for the state’s AEC industry. This comprehensive housing production bill addresses the state’s severe housing shortage by creating new development pathways. At LRS Architects, we take great pride in leading projects, collaborating with our partners, and working closely with municipalities on opportunities created by shifting legislation.

It is our responsibility to remain at the forefront of state policy developments, ensuring that we not only understand but also anticipate changes that affect housing. We frequently advise project partners and local jurisdictions on the implications of new legislation, helping them leverage policy tools and funding opportunities to expand housing production and improve affordability across communities.

Design that transcends expectations

Affordable housing design begins with one fundamental question: How do we create environments that residents feel proud to live in and call home?

Good design involves carefully selecting materials, planning layouts to accommodate how people navigate in and around buildings, and connecting those spaces with the surrounding community. Our goal is to create quality housing where residents feel safe and that transcends the image and often misunderstood reputation of what affordable housing can be.

This philosophy manifests in projects across Oregon. An example is our Lincoln City affordable housing project on the Oregon Coast. In collaboration with developer Innovative Housing Inc. (IHI), LRS Architects completed 107 new apartments with one, two or three bedrooms for households earning 30-60 percent of AMI in 2025; this project was critical in addressing workforce housing needs in the region.

Community outreach drives culturally responsive design. As an example, LRS Architects tailors projects to reflect the specific communities they serve, whether for the Muslim community and intergenerational families in Portland’s Capitol Hill neighborhood or for people who have experienced trauma. Construction recently began in Portland on such a project. Jamii Court, a five-story, 96-unit development led by Community Partners for Affordable Housing, will serve families, marginalized residents, and neighbors at risk of displacement.

Building for climate resilience

Central Oregon projects showcase how affordable housing must respond to regional climate realities. At Trinity Place in Sisters, LRS Architects, in collaboration with developer Northwest Housing Alternatives, designed 40 homes in a corridor-style building with fire-resistant materials, defensible-space landscaping, and noncombustible exterior cladding. These design strategies, as well as attic and roof details that address smoke and fire concerns, have been implemented due to wildfire risks in Central Oregon.

Resiliency extends beyond materials. LRS Architects has implemented battery energy storage systems (BESS) in affordable housing communities to ensure residents maintain power access when utility companies preemptively shut off service during fire and storm events. At Wickiup Station Apartments in Bend, LRS Architects and developer Foundation for Affordable Housing designed a 39-unit complex featuring an 85-kilowatt photovoltaic array that supports energy independence. Earth Advantage platinum certification is being pursued for the project.

Looking ahead: technology and community

Innovation opportunities in 2026 center on technology and community engagement. Architects can use artificial intelligence (AI) with human oversight to animate preliminary designs, giving residents, stakeholders and neighbors a tangible sense of proposed developments before construction begins. There is a great opportunity for implementing technology and storytelling in the preliminary design stage and beyond.

Community building also remains paramount. LRS Architects worked for six years on an affordable housing development in which initially concerned neighbors became champions of the project after experiencing our design execution and community outreach approach firsthand. This transformation demonstrates that when architects prioritize transparency and engagement, they can shift perceptions and build lasting support for housing solutions that are embraced by the local community.

As Oregon confronts persistent housing shortages, the path forward requires architects, developers and policymakers to embrace both technical expertise and human-centered design. The work is complex, but the mission is clear: create homes where residents thrive, communities flourish, and affordability doesn’t compromise quality.

Trish Nixon is the president and a managing principal of LRS Architects. Contact her at [email protected].

Mathew Dreska is a senior associate, architect and design manager at LRS Architects. Contact him at [email protected].

The opinions, beliefs and viewpoints expressed in the preceding commentary are those of the authors and do not necessarily reflect the opinions, beliefs and viewpoints of the Daily Journal of Commerce or its editors. Neither author nor the 91ÊÓƵ guarantees the accuracy or completeness of any information published herein.