Oregon housing starts rise 11.3% in first half of 2026, outpacing national trend

SALEM, Ore. (KTVZ) -- Oregon housing starts increased by 11.3% year-over-year during the first half of 2026, marking a second consecutive year of statewide construction growth. The increase occurred as national housing production dropped by 1.3% over the same period.

Gov. Tina Kotek announced the production figures, pointing to state administrative efforts to reduce regulatory barriers and support new housing supply. State data show that more than 50,000 future homes are currently in Oregon's production pipeline.

The growth follows a previous period when housing production was falling both nationally and within Oregon. State officials cited high interest rates and changing federal policy resources as challenges during the recovery.

Gov. Kotek emphasized state partnerships across sectors when addressing the growth numbers.

“I'm fighting to put housing within reach for all Oregonians. This upward trend demonstrates what's possible when the state partners successfully with local government and the private sector with a shared vision and shared urgency, with or without a reliable federal government,” Kotek said.

State actions taken this summer include re-launching a permanent lending program for housing construction offering interest rates lower than private sector options. The state also announced grants intended to spur more than 8,000 housing units within urban growth boundaries across several Oregon cities, alongside investments in shelter and transitional housing for unhoused residents.

Representatives from the building industry acknowledged the focus on construction regulations. Mike Riddle, president of the Oregon Home Builders Association, commented on the housing numbers and ongoing state efforts.

“The recent increase in housing starts is a positive sign for builders and for families looking for a home,” Riddle said. “We appreciate the focus from the Governor and the Legislature on reducing barriers to production. There is still more work ahead to meet Oregon's housing needs and our industry looks forward to continuing that effort with state and local partners.”