Reports on economic state of Portland, downtown show region at 'a crossroads'

PORTLAND, Ore. — Portland is at a crossroads for its economic future, according to a pair of newly released reports that look at the Rose City's changing population and the migration of people and businesses

The Portland Business Alliance and the group Downtown Portland Clean & Safe released the reports Tuesday. One called the "State of the Economy" looks at the city's economic recovery through 2022. The inaugural "State of Downtown & Central City" report on the role that Portland's workforce plays in the overall regional economy.

The reports show that Multnomah County had a population decrease of nearly 12,700 people. It also pointed to an income loss of $117 million from Multnomah County from people who moved to Clark County in 2019 and 2020.

Clean & Safe made a clear statement about the economic standing of Portland:

This year’s indicators mark a crossroads for our region’s economic future.

Clean & Safe says that the report intends to help understand the impacts of "growing unaffordability, reputational challenges, remote or hybrid work, rising office vacancy rates, and a widely varied method of taxation" across Portland.

At a meeting discussing the findings, Dr. Mike Wilkerson, a Partner and Director of Analytics, said the trends are still pointing upwards.

"The cost you can see, in terms of our economy. We recovered more slowly, but today we are seeing growth rates ... amongst the highest of all [Metropolitan Statistical Areas] in the country. I think we are in the top 10, on Nashville of our peers is today is growing faster," Dr. Wilkerson said.

Portland's annual property tax receipts fell in 2022. It was the first time since 2005, after the city had an annual growth of about 5.2%.

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“Our community is at a critical inflection point,” said Roger Hinshaw, Bank of America president for Oregon and SW Washington.

The 2023 State of the Economy and State of Downtown & Central City Reports clearly outline the threats we face and underscores the need for a better path forward. In order to secure the vitality of our region, our government, business and community leaders must collaborate to confront the serious challenges we face and build an inclusive roadmap to achieve the results we all want for our families, businesses and our neighbors

Below is a breakdown of the key numbers and statistics found in the report:

• 5.4% - Portland metro job growth in 2022, Multnomah County lags by 4.5% from pre-pandemic levels.
• 10.4% - Jobs gained in Leisure & Hospitality sector, only outpaced by Construction sector.
• 12,691 – Population decline by out-migration in Multnomah County.
• $117 million – Multnomah County income loss from migration to Clark County, WA, 2019-20.
• 32% - Increase of local business taxes in the City of Portland since 2019.
• 48% - Employee foot traffic in Portland’s Central City, below 2019 levels.
• 65% - Employee foot traffic in Downtown district, below 2019 levels.
• 8 million – Square feet of vacant class A, B, and C office space in Portland’s Central City.
• $280.8 million – Annual property tax revenue in Central City and Downtown Portland Clean & Safe district in 2022.

“While our regional economy is trending in a positive direction after having recovered all the jobs lost from the pandemic, it is the heart, Central City Portland, that is struggling and needs help,” said Portland Business Alliance President & CEO Andrew Hoan. “Without urgent and focused interventions that deploy every available tool to help return livability and vibrancy to our downtown, we will not enjoy the promise of shared economic prosperity that is vital for our region and the state.”