Phoenix, OR Approves Denser Housing

The Phoenix, Oregon City Council just narrowly approved a controversial zoning change to allow more housing density downtown. The 4-3 vote came after months of heated debate. Proponents hope it will ease the city's housing shortage, but opponents are worried about increased traffic and losing the town's character.

The recent zoning change is part of a broader effort to address housing needs in a city still recovering from the 2020 Almeda Fire, which destroyed a significant number of homes. State and federal funds have been allocated for new affordable housing projects, such as the 72-unit Pacific Flats and the 88-unit Phoenix Corner developments, to assist residents with incomes below 60% of the area's median. This push for increased density aligns with a larger, statewide conversation in Oregon about tackling the housing crisis. The Oregon Housing Needs Analysis has identified a significant statewide shortage of housing units, prompting legislation to encourage more diverse housing options. However, these state-level mandates have been met with local concerns about preserving community character, a sentiment reflected in the heated debates in Phoenix. The median home sale price in Phoenix was approximately $430,000 at the end of 2025, with local real estate market trends showing fluctuations in inventory and days on the market. These market dynamics provide a complex backdrop for the city council's decision, as Phoenix navigates the challenge of balancing growth with the preservation of its small-town feel. The implementation of the new zoning regulations will be a key focus for city officials and residents alike. The city has previously annexed land to support affordable housing projects, indicating a willingness to explore various avenues to address the housing shortage. The long-term impacts of this new, denser downtown zoning on the local economy and community life will be closely watched by all stakeholders.

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