Feb. 12, 2026
What happened: Today, the Portland Metro Chamber released its annual reports on the Portland region’s economy and the state of the city and its downtown. The findings are sobering. The region in 2025 experienced job losses, slow population growth, dwindling exports and rock-bottom real estate attractiveness. In Portland’s central city, meanwhile, more office space sat empty in 2025 than at any point on record.
Regional economy at a glance:
- 3,300: More births than deaths in Portland metro in 2024, down from 13,800 in 2001.
- 8,800: Number of jobs lost in the region in 2025, fourth worst of all metro regions in the nation.
- 80th: Portland ranked second to last again in a national real estate attractiveness ranking.
- 656: Number of multifamily housing units in Portland’s pipeline, lowest since 2011.
- $6.4 Billion: Quarterly value of exports, down from $10 billion in Q3 of 2024.
State of downtown Portland at a glance:
- 252,289: Quarterly average of leased square footage in 2025, lowest on record with exception to 2020.
- 86%: Total percent of foot traffic in Portland’s central city compared to 2020 levels.
- 10.2 million: Quarterly average square feet of vacant office space in the central city in 2025, highest level on record.
Why it matters: While the reports released today focus only on one region in the state, the health of Portland’s economy matters a great deal to the rest of Oregon. The tri-county region has roughly 40% of the state’s population but contributes nearly 60% of Oregon’s GDP. For Oregon to prosper, the Portland metro area must as well.
Statewide data sobering: In a presentation accompanying the reports’ release, ECONorthwest Director of Economic Research Mike Wilkerson shared data showing that Oregon’s economic problems are not confined to the Portland metro area:
- Migration is costing Oregon personal income, including roughly $530 million in 2022, the most recent year for which data are available. Oregon’s public services rely heavily on the personal income tax.
- Government expenditures in Oregon as a share of personal income (24.7%) were the nation’s third highest in 2022, topped by two states with sovereign wealth funds, New Mexico and Alaska. Given the state’s nearly nation-leading spending, resulting in a budget that doubled between 2015-17 and 2025-27, the state needs to focus on growing the economy, not increasing the tax burden.
- Competition among states for job-creating businesses is fierce, and Oregon is simply not competitive.
Takeaway: Oregon’s economy and that of its largest city have suffered in recent years as the state’s business climate has eroded. Keeping to the policy path that has produced these results will not turn things around for Oregon or for the Portland metro area. State and local policymakers must prioritize economic development and private-sector job creation.
Learn more: Go here to learn more about the Portland area economy, here to learn more about the state of downtown Portland and here to read OBI’s Oregon Competitiveness Agenda, which contains dozens of necessary pro-growth reforms.