In recent months, several cottage cluster housing developments on single-family lots came to completion in Beaumont-Wilshire. Gone are the mud, the noise, and the steady stream of worker bees at the sites of these recently allowed housing types. Replacing the construction chaos are crisply painted structures, instant lawns, and new plantings. The selling phase has begun, and, if using sales as a measure, the small homes appear to be in demand.
Who’s Buying?
Chris Dawkins, principal broker for The Dawkins Group with Keller Williams, is the listing agent for an eight-unit project just east of NE 42nd Avenue on NE Mason. Dawkins revealed that by early April four units had been sold, and the remaining four units were pending. Prices ranged from $455,000 for a two-bedroom model to $550,000 for a three-bedroom home; the units range from 891 square feet for the two-bedroom units to 1,214 square feet for three-bedroom units.
Time on the market for these eight small homes, an indicator of demand, averaged 49 days. This compares with an average time on the Portland market of around 70 days in March.
Dawkins believes there are a variety of factors that make these homes attractive to purchasers.
“This new type of housing simply provides more needed options for buyers in today’s market,” he said. “Rather than purchase a two-bedroom cosmetic fixer house, entry-level buyers can now purchase a new, energy-efficient home in the same price range, often in a stronger location.”
Not Just for First-Time Home Buyers
Dawkins sees significant interest from buyers looking to downsize from larger, older, less efficient, higher-maintenance homes. “These buyers have unused space and want to spend time recreating and traveling, rather than caring for a home,” he said.
Affordable? Compared to What?
Middle housing developments like these cottage clusters have been touted as a solution to the affordable housing crisis. But are they affordable and by whose definition?
Darryl Bodle of Darryl Bodle Real Estate is the marketing agent for a recently completed four-unit townhome development in Beaumont-Wilshire on NE 42nd Avenue near Everest Market, just across the street from the Beaumont Middle School field. He said that while the shared-wall homes he’s selling are no larger than 925 square feet and range in price from about $400,000 to $420,000, by Portland standards, they are affordable.
“Prior to the Oregon State mandate requiring cities over 25,000 residents to allow up to four new living units on a single-family lot,” Bodle said, “a small house would have been scraped from the lot and replaced with a much larger home at a price point out of reach for most first-time homebuyers.”
Bodle also said these middle housing products address a critical gap in our market.
“It offers opportunities for a broader range of buyers to find homes that meet their needs.”
A Developer’s Perspective
Eric Thompson is the owner of Oregon Homeworks and its SNUG Homes line of housing, which focuses on building attainably priced middle housing. He’s the developer for the cluster housing project on NE Mason. With years in the home construction business, he says the market has shifted to smaller units for a variety of reasons.
“Given the high cost of land in Portland and the high interest rates for buyers, we’re not seeing a lot of new single-family construction anymore on these infill lots,” Thompson said. “The resulting new home would cost well into the $1 million range, and the current building code puts a size limit on how big those single-family homes can be.”
What are the Neighbors Saying?
Tim Root lives on NE Mason, a few blocks east of the SNUG homes project. Early on, Root wasn’t keen on the idea of this type of development on his street, concerned about parking challenges, myriad trash receptacles lining the street once a week, and how the project would change the dynamic of the neighborhood. Now that the project is complete, he’s still worried about the impact when all the new owners move in. While not convinced this kind of development is a good thing, he’s taking a more pragmatic view these days, albeit begrudgingly.
“I think they’re appropriate in light of the demand for housing,” Root said. “But we could go off the deep end, shoehorning these in everywhere.”
He does, however, have one major gripe: the paint-color scheme. All eight of the units are painted bright white with front doors in different primary colors. He refers to the project as “Crayola Crayon Village.”
“I just think the paint job is unsightly, and I’m disappointed the developer didn’t do better.”
Housing Affordability and SDC Exemption Program Homes
According to the U.S. Department of Housing and Urban Development, the term “affordable” is used for housing that costs no more than 30% of a household’s gross income, including utilities. In Portland, there is a System Development Charges (SDC) Exemption Program that reduces fees developers are assessed for middle housing projects. Buyers of SDC Exemption Program homes must have incomes no greater than 120% of the city’s median family income — this equates to about $140,000 per year for up to four people in the household. That income threshold increases based on the size of the household.
A Price Cap on SDC Exemption Program Homes
Units under the SDC Exemption Program must sell for less than a price cap of $455,000 per unit in 2025, updated annually. Units selling at a price higher than the cap are not eligible for the SDC exemption benefits. For more information about Portland’s SDC Exemption Program, visit portland.gov/phb/sdc-exemption/home-ownership.
Can They Be Rented Out or Used as Short-term Rentals?
Purchasers of an SDC Exemption Program property are required to occupy their homes. As with any home owner in the city, however, they may rent their whole home for up to 90 days a year or rent rooms in their home for short- or long-term purposes as allowed under the City of Portland’s short-term rental policy.
What About Parking?
The SDC Exemption Program units come with state-mandated rules that allow for no off-street parking requirements. These rules were put in place to help bring down the cost of new housing, as the space to park cars off-street requires more land, which increases the price for the home.
Current Real Estate Market Stats for Beaumont-Wilshire
| 10 Homes for Sale | $632,000 Median List Price | 35 Median Days on Market |
|---|---|---|
| 12 Homes Under Contract | $1,445,000 High Price | $283,000 Low Price |
The statistics above provide an up-to-date snapshot of the listed inventory as of April 20, 2025. Median days on market is a good indicator of the average length of time the current inventory has been on the market. Compiled by Polly Webber.
Susan Trabucco is a BWNA board member and the volunteer editor of this newsletter. She was the founder, editor and publisher of a regional business journal. Since 2012, Susan and her husband have called B-W home, where she practices zonal denial in her tropical-ish garden. Reach her by emailing Editor@BWNApdx.org.