Portland, OR—February 12, 2026—The Portland Metro Chamber has released its annual State of the Economy report, as well as its annual State of Downtown & the Central City report. The reports were produced by ECOnorthwest, and presented by Bank of America and Downtown Portland Clean & Safe.
The reports show that the Portland region is at a major inflection point. Outmigration has eased, but natural population growth has stalled, leaving future demographic growth increasingly dependent on international migration. At the same time, employment has continued to contract even as the national economy expands – a departure from Portland’s historical role as an economic outperformer. Housing production has slowed sharply, and housing affordability remains out of reach for many households.
These trends reflect the recently released findings of the Chamber’s annual State of the Electorate report on voter sentiment, which found that Portlanders feel deeply uncertain about their economic outlook.
State of the Economy Takeaways:
- 3,400 - more births than deaths in the Portland metro in 2024, which is down from 13,900 more births than deaths in 2001
- -8,800 - number of jobs lost in the region in 2025, fourth worst of all metro regions in the nation
- 80th - Portland continues to rank second to last in national real estate attractiveness ranking
- 656 - number of multifamily housing units in Portland’s pipeline, lowest since 2011
- $6.4B - quarterly value of exports, down from $10B in Q3 of 2024.
“The economic trends in this report, together with low economic confidence among the public, serve as clear warnings,” said Andrew Hoan, President and CEO of the Portland Metro Chamber. “This economic decline is the direct result of major cracks in our foundation brought about by structural policy decisions across the city, counties, metro and state – and these issues will not fix themselves. Now is the time to adopt a competitive mindset and learn from our past mistakes as well as recent positive gains in safety and livability. Public-private partnerships have driven significant progress on public safety, homelessness, and livability issues in recent years, including a steady increase in downtown pedestrian traffic."
Hoan added, “Under the status quo, we will continue seeing economic decline, business flight, and strained funding for public services. Conversely, we can positively turn around our trajectory if public and private partners coordinate on clear, shared economic priorities: retaining and attracting private investment, building affordable housing, and creating jobs. Positive change is now a must, not an option – the future of the next generation of Portlanders and Oregonians hangs in the balance.”
State of Downtown & the Central City Takeaways
This is the fourth year that the Portland Metro Chamber has produced a State of Downtown & the Central City report, which presents analyses of the vital role that Downtown Portland plays in our regional and state economies. This data comes after the release of the highly anticipated 2025 Downtown Portland Foot Traffic Report.
- 252,289 - quarterly average of leased square footage in 2025, lowest on record except 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, which is the highest level on record.
The 2026 State of Downtown & the Central City report shows that compared to last year, the story in 2026 is less about whether downtown activity will rebound through office recovery alone, and more about the region’s “new normal.” Office leasing has further declined to the lowest level on record, and vacancy has continued to rise, reinforcing that hybrid work is driving a lasting shift in demand.
Record-low leasing, historically high vacancy, and stabilized work-from-home patterns point to a structural shift in how downtown space is used. At the same time, foot traffic has continued to recover, suggesting that downtown’s future will depend less on a full return to pre-pandemic commuting and more on drawing residents and visitors throughout the week.
Downtown Foot Traffic Highlights:
- More than 32 million pedestrians visited Downtown in 2025, up from 30 million pedestrians in 2024 – a 5.5% increase.
- Saturdays in Downtown have rebounded to nearly 90% of pre-pandemic levels, with multiple Saturdays exceeding 2019 activity.
- 2025 saw the busiest summer for pedestrian traffic since before the pandemic.
- 11 out of 12 months in 2025 recorded higher foot traffic than the same months in 2024, up from 9 months of year-over-year growth in 2024.
- 18 out of the past 20 months saw year-over-year foot traffic growth.
“Portland’s Central City has experienced major improvements on foot traffic, safety, and other livability issues since the pandemic, and that progress has largely been driven by focused public-private action and partnership,” said Mark Wells, Executive Director of Downtown Portland Clean & Safe.
“However, these gains are fragile, and we cannot take this positive momentum for granted. Now, we must leverage these lessons and successes to prioritize our downtown economy. A full calendar of downtown cultural events and activations are increasing downtown pedestrian traffic and vibrancy, but vacant office buildings and lagging office worker activity remain a major drag on Downtown’s post-pandemic recovery. Downtown is the economic engine of the State of Oregon – investment in the core of Portland is vital to achieving sustainable wellbeing for the greater region and state.”
View the full State of the Economy and State of Downtown & the Central City reports with interactive charts:
Additional referenced and previously released material:
Value of Jobs Coalition:
Portland Metro Chamber: The Portland Metro Chamber was founded in 1870 and represents the largest, most diverse business network in the region. The Chamber brings together more than 2,200 members represented by dynamic and varied employers from around the region. Grounded in its mission to create opportunity and advance well-being for all who live and work in the greater Portland and SW Washington region, the Chamber envisions a healthy and resilient business ecosystem where we work together to increase collaboration in governance; engage community; increase civic leadership; and advocate for a vibrant, livable place for all. Learn more at PortlandMetroChamber.com.
Downtown Portland Clean & Safe District: The Downtown Portland Clean & Safe District was established in 1988 to support additional cleaning and security in a 273-block area of Portland's Central City. In addition to these important services, the district supports market research, retail recruitment and retention for Downtown Portland. The district is managed by the Portland Business Alliance under the direction of the district's board of directors. Learn more at DowntownPortland.org.
ECOnorthwest: ECOnorthwest is an independent economic consulting firm. Since 1974, ECOnorthwest has worked with a variety of public and private clients across the country, offering economic perspectives on issues ranging from wildfire recovery to education inequities and affordable housing. ECOnorthwest clients have one thing in common – they want insightful, rigorous analyses to strengthen policy and investment decisions. Learn more at econw.com.
