Is the Urban Growth Boundary Good for Portland Home Values?

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What’s the best thing about living in Portland?

Some say it’s getting out of Portland!

Not only do we have incredible wilderness areas and parks within a day’s drive, out-of-towners are always amazed at how quickly the city vanishes in your rearview mirror. Where’s the sprawl? Thanks to Oregon’s unique land use system, it pretty much doesn’t exist in rural areas surrounding Portland and other cities.

This system traces back to 1974, when Oregon established 19 Statewide Planning Goals to protect farmland, forests and open space, encourage efficient development, and eliminate the costs of poorly planned development. And it’s worked!

One of the most powerful tools land use planners have is the Urban Grown Boundary, or UGB. The UGB looks and acts as a lasso around Oregon’s cities, keeping development within the defined limits, and preserving the rest for rural uses. That means farms and forests can exist side-by-side with subdivisions and office parks. New parking, housing, commercial uses and most other activities aren’t allowed in the rural zone unless the UGB is expanded and the property is approved for rezoning.

Of course, the system has its critics, including property owners who are concerned about the UGB limitations affecting their property value, and housing advocates worried that limiting residential growth makes housing unaffordable. Thankfully, neither one of these claims holds water. A 2011 study at Oregon State University showed that the statewide land use planning system, including the use of UGBs, has actually increased property values over the decades as compared to similar counties in Washington.

Urban Growth Boundaries are not static, they are expanded as needed. In Portland, the land supply is evaluated every seven years and the UGB has been expanded dozens of times since its inception, maintaining the balance between the need for new housing and for land that serves farming, forestry and recreational purposes.

Improved property values and higher home prices do go hand in hand, but Portland remains a (relatively) affordable place to live thanks to a steady job market and competitive wages. In fact, one of the land use planning goals that was written into the law was to improve economic opportunities for Oregonians, and it worked! Forestry, farming and outdoor recreation continue to be important cornerstones of our economy — even for Portland residents — and they will remain so thanks to land use laws that preserve these spaces for generations to come.

Portlanders benefit from the preservation of rural lands as well, enjoying Oregon’s famed clean air, water and wildernesses. In fact, Senators Wyden and Merkley recently proposed a new bill that would give protected wilderness or national recreation area status to 200,000 acres in Oregon! It’s no wonder hiking, camping and mountain biking are among the top recreation activities for Portlanders.

Yes, Oregon’s land use and zoning laws can get complicated, but that’s all the more reason to have an experienced Portland real estate agent on your side. Whether you’re exploring the area, looking to sell or buy, I have the information and expertise you need to master the Portland real estate market.

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