Portland’s Infill Rules Improve Neighborhood Affordability. Raleigh’s Rules Do the Opposite.

In a recent N&O story entitled “Why are so many homes getting torn down in Raleigh neighborhoods?” Raleigh’s Planning Director has given up using the word ‘affordable’ to describe homes being built under the city’s new infill housing rules.

The wave of affordable teardowns and mansion rebuilds described in the N&O story suggests Raleigh should emulate Portland Oregon’s successful affordable infill rules. Unlike Raleigh, Portland’s Middle Housing rules make it profitable to build duplexes, triplexes and quadraplexes on lots previously zoned exclusively for single-family dwellings. Portland is adding new, smaller and more accessible homes in existing neighborhoods that achieve three important objectives: (1) compatibility with the setting, (2) lower cost than the average new dwelling and (3) profitability for builders.

Unlike many cities where Middle Housing permits have lagged, Portland’s Middle Housing rules achieve all three objectives and the city’s data prove it:

• by mid-2024 Middle Housing made up 43% of new units in single-dwelling zones (see chart below)

• new Middle Housing sold for $250,000 to $300,000 less on average than newly built single-detached homes

• new Middle Housing production has not increased demolitions

By mid-2024 Portland’s Middle Housing made up 43% of new units in single-dwelling zones

Comparable Middle Housing data for Raleigh are sorely needed, but difficult to find. One statistic stands out: while Portland’s Middle Housing infill rules have not increased demolitions, Raleigh demolitions have more than doubled in recent years. Perversely, Raleigh’s Middle Housing infill rules are making the city’s affordability crisis worse by promoting the teardown of affordable homes rather than their production.

Allowing more smaller, affordable units on a lot that would otherwise contain one expensive unit has clearly hit a sweet spot with Portland builders and affordability advocates. Portland’s housing reforms aren’t a silver bullet, but they are a powerful reminder to Raleigh that well-designed policies can produce affordable, human-scaled homes in Raleigh neighborhoods people already love.

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