The construction market has grown slightly in Portland in Q4, but is predicted to decline again in the coming year.
Portland’s construction will continue to cycle between decline and growth in the years ahead. It is yet to be seen if Oregon’s new legislation on rent controls will have an effect on this predicted cycling. Portland is blazing new trails technologically with the eight-story Carbon-12 building, reported to be the tallest timber structure in the United States. Meanwhile, transportation remains the most active sector in Portland. Despite unemployment below 3%, there remains a shortage of labor with contractors reporting difficulty finding the skilled labor they need. Moving into 2020, we are expecting to see a slowdown in construction driven primarily by the contraction of the residential and infrastructure sectors. A reduction of 6.4% in 2020 will help to alleviate labor shortages, however it remains to be seen if this will help offset pricing increases.