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early 1,900 publicly subsidized rental units in Portland remain vacant, according to new CoStar data. Of the city’s 25,409 affordable apartments, 1,863—7.4%—are empty, far above the 5% equilibrium rate that signals efficient use. This comes as thousands wait for affordable housing and taxpayers fund new units amid a declared crisis.

    The 2016 $258 million bond approved by voters will create almost 1,900 units, roughly the same number that are currently unoccupied. City leaders have long urged expansion of the affordable stock, and the demand is clear: Home Forward’s Housing Choice Voucher program received seven applications for every opening when the waitlist reopened in April, a key indicator of need.

    Meanwhile, Multnomah County reports over 16,000 homeless residents, with nearly 7,500 living on the street or in vehicles—most in Portland. That is about 2,000 more than when Mayor Keith Wilson took office in January.

    Wilson told the Oregonian/OregonLive that about 2,000 affordable units sit empty and that the challenge is “activation” rather than supply. He has prioritized filling vacancies and moving homeless residents from shelters into permanent housing through the weekly Shelter to Housing Strike Team.

    Several factors drive the high vacancy rate. Administrative delays keep tenants from moving in, while rising rents narrow the gap between subsidized and market rates. A balanced market typically has a 5% vacancy. In many buildings, subsidized rents have climbed beyond what the city’s lowest earners can afford, forcing some to double up with family or friends. “Even affordable rents are too high,” says Margaret Salazar, CEO of Reach Community Development.

    CoStar data shows the gap between affordable and market rents hit a low of $452 in Q4 2025, but that average masks unit‑level disparities. Rents for 60% AMI studio units often match market rates, according to Portland Housing Bureau spokesperson Gabriel Mathews. Tenants near the income limit may prefer market‑rate buildings because of simpler applications and no annual income recertification.

    Yardi Matrix reports that 42% of Portland metro market‑rate properties offer rents within 10% of affordable units, making competition fierce. Paul Fiorilla, research director, notes that when prices are close, affordable units struggle to attract tenants. Market‑rate buildings also tend to have better amenities, and the paperwork for affordable units can be a deterrent, says Brenneke of Guardian Real Estate Services.

    High eviction rates in affordable rentals also contribute, as tenants fall behind after pandemic‑era rent relief ends. Administrative issues further hinder providers from connecting prospective tenants to housing. A May Oregonian/OregonLive story highlighted a program prioritizing residents displaced from North and Northeast Portland, but waitlist management problems left many units empty for months. At the time, the city cited a 2–3% vacancy rate for the roughly 470 units under the policy, but Reach’s Salazar reported an 11% vacancy in its preference‑policy building—about 17 empty apartments.

    Many potential tenants did not respond to calls or did not qualify based on household size or income, data that city officials had not collected upfront. The city has since introduced fixes to reduce these delays.

    Salazar identifies administrative challenges and flat market rents as the main drivers of vacancy. Affordable housing providers face budget constraints; Home Forward announced layoffs amid federal cutbacks. She suggests state operating subsidies to help providers refinance debt and restructure properties, but high mortgage payments and other expenses currently prevent such moves. “We can’t just drop the rents,” she says.