Portland Metro Chamber Releases 2024 State Of The Economy Report -02/15/24
PRESS RELEASE
Thursday, February 15, 2024
Portland Metro Chamber and Downtown Portland Clean & Safe Release 2024 State of the Economy and State of Downtown & Central City Reports
FEBRUARY 15, 2024– Portland, OR: On February 15, the Portland Metro Chamber and Downtown Portland Clean & Safe released their State of the Economy and State of Downtown & Central City reports. These reports were produced in partnership with ECONorthwest and presented by Bank of America, along with the Value of Jobs Coalition.
The State of the Economy report continues to examine the economic outlook for the Portland Metro area over 2023 and takes a closer look at the impact population loss is having on the region and the state. The report established a new set of peer regions to better measure progress, including Denver, Milwaukee, Minneapolis, and Sacramento. Highlights include: three out of the four metro counties, excluding Multnomah County, have exceeded their 2019 job totals. From a jobs perspective, the region can declare the pandemic recovery completed and can reset the conversation to post-2023 growth. Other positive news, the GDP recovery is aided in part by the ongoing growth of the region’s technology sector. Areas of concern continue to be lack of affordable housing, livability, and taxes, especially when it comes to basic services like safety and the 911 system.
“The 2024 State of the Economy report illustrates the importance of government, business and community leaders continuing to collaborate to confront the serious challenges our community faces,“ said Roger Hinshaw, Bank of America president for Oregon and SW Washington. “While much work has been done over the past 18 months to secure the vitality of our region, this report underscores the need to continue to be laser-focused on creating a community that is thriving for local families and business.”
The State of Downtown & Central City report expands on last year’s data and takes a deeper dive into Downtown Portland’s role in our regional and state economies. The Central City had a strong recovery in 2023, trailing only Seattle and Minneapolis. The pandemic has changed the role of downtowns across the U.S. with a higher reliance on residents and visitors than in years past. The report shows this is the “new normal” and ongoing recovery efforts must look beyond attracting office workers; Portland’s Central City needs more residents and visitors, both from tourists and those living in other parts of the region.
This data is designed to help better understand the impacts of growing unaffordability, reputational challenges, remote or hybrid work, rising office vacancy rates and a widely varied method of taxation across our region.
Key Takeaways:
• 1.3% Portland metro job growth in 2023, below U.S. average.
• 4.1% jobs gained in the Leisure & Hospitality sector, slower than 10.4% from 2022.
• 11,000 jobs lost in the Professional Services, Manufacturing, & Information sectors.
• 8% premium to live in Portland when adjusting median household income, driven mostly by the high cost of housing.
• 26% growth of city revenue collection from 2010-2020, only surpassed by Seattle.
• 14% percent increase in Portland Central City foot traffic, compared to 2022.
• 4:1 ratio of jobs to housing units in Portland’s Central City.
• 94.7k density of foot traffic by acre in Portland’s Central City in 2023.
• 290k average square feet of leased building office space, down from 660,000 square feet
”Whatever economic energy that could be captured through the cessation of public health restrictions or other pandemic era headwinds has concluded. Starting January 1, 2024, we must acknowledge that this is the new Portland regional economy baseline, and our new peer regions," said Andrew Hoan, President and CEO of the Portland Metro Chamber. “Our collective focus needs to be on reversing the decline in population and inclusive economic development, with urgency. Our region is beginning to head in the right direction but we must continue to support policies and big investments that allow us to effectively out compete our peers around the country.”
View the full State of the Economy and State of Downtown & Central City reports with interactive charts at PortlandMetroChamber.com.
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Portland Metro Chamber: Greater Portland's Chamber of Commerce – was founded in 1870 and is the leading voice for business in the region. The Alliance represents the largest, most diverse business network in the region, bringing together nearly 1,900 dynamic members, and advocates at all levels of government to support commerce, community health, and the region’s overall prosperity.
Downtown Portland Clean & Safe: The Downtown Portland Clean & Safe District was established in 1988 to support additional cleaning and security in a 213 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.
ECOnorthwest: “ECOnorthwest is an independent economic consulting firm. Since 1974, we have 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. Our clients have one thing in common – they want insightful, rigorous analyses to strengthen policy and investment decisions.”
Bank of America: Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 3,900 retail financial centers, approximately 16,000 ATM and award- winning digital banking with approximately 56 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.