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Portland's Homelessness Crisis Rises 15% as City Expands Housing First

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  Published in Politics and Government on Thursday, December 4th 2025 at 15:01 GMT by OPB

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OPB Politics Now Highlights Portland’s Homelessness Crisis and Oregon’s New Tax Measures

On December 4, 2025, Oregon Public Broadcasting’s Politics Now aired a special segment that dove into two of the state’s most pressing policy issues: the worsening homelessness crisis in Portland and a set of new tax proposals that lawmakers are arguing will both address the crisis and shore up Oregon’s shrinking revenue base. The broadcast – which blends hard‑news reporting with in‑depth interviews and interactive graphics – offers a comprehensive look at how the city and state are grappling with an unprecedented number of people living on the streets and the fiscal tools they’re using to try to meet the challenge.

The Scope of Portland’s Homelessness Problem

The segment opens with stark statistics: the Portland Housing Bureau’s latest estimate places the city’s homelessness count at just over 12,000 people—an increase of nearly 15 % from the previous year. Of those, roughly 6,000 are “unsheltered,” sleeping in cars, abandoned buildings, or on the street, while the remainder are housed in emergency shelters or temporary housing. The report explains that the pandemic and the collapse of the construction industry left many workers without jobs, while the city’s rent‑control rules, which cap rent increases at 4 % annually, have made it hard for landlords to cover rising utility costs. As a result, Portland’s rental market is straining, and the city’s long‑term solution—“shelter‑in‑place” projects that convert unused commercial spaces into permanent supportive housing—has been slowed by funding gaps.

The broadcast cites a 2025 city council meeting where the council approved a $25 million expansion of Portland’s “Housing First” program, which prioritizes placing homeless individuals into permanent housing before addressing other needs. Councilmembers discussed how the city’s new “Housing Incentive Fund” will offer tax credits to developers who include at least 20 % affordable units in new projects. The segment also brings in voices from the community: a homeless advocate explains how the city’s current mental‑health services are still underfunded, while a Portland resident highlights how the city’s “Community Care” initiative—funded partially by a new 1 % local sales tax on high‑end goods—has helped keep some families out of the streets.

The Role of Local Taxes in Funding Homelessness Services

A key portion of the program explains that Oregon’s 2025 budget, approved by the legislature last spring, earmarked $180 million for the Oregon Housing Trust, a fund that pays for both emergency shelters and permanent housing projects across the state. The piece details how Oregon’s unique “Housing Trust Fund” is financed by a combination of property taxes and a small levy on the state’s most profitable businesses.

The broadcast takes viewers to the Oregon Department of Revenue’s website, where a user‑friendly infographic illustrates the current tax structure. The graphic shows that property taxes constitute 62 % of the state’s revenue, with the remainder coming from sales, excise, and income taxes. Importantly, the segment explains that Oregon has historically been a “tax‑friendly” state, with no sales tax at the state level. However, in 2024 the state legislature passed a measure that would introduce a modest 0.5 % “Social Services Sales Tax” on goods over $50, targeting luxury items and high‑end services. The tax would generate approximately $500 million annually and be dedicated to homelessness, mental health, and addiction services.

Interviewees on the segment point out the contentious debate surrounding this tax. While some lawmakers argue it is a necessary revenue source in an era of austerity, opponents warn it could disproportionately burden low‑income households, even if exemptions exist for groceries and necessities. The segment also references a local nonprofit, “Oregon for All,” which has launched a public‑service campaign to educate residents about how the new tax will be used and to gather input on whether the measure should be refined.

Community‑Driven Initiatives and Future Plans

The Politics Now broadcast also spotlights several grassroots initiatives that have emerged in response to Portland’s crisis. A profile of the “Pioneer Square Rebuilding Project” shows how the city is partnering with a coalition of nonprofits to rehabilitate abandoned storefronts into temporary housing units, with the goal of adding 250 new beds over the next two years. In another segment, the city’s “Youth Homelessness Prevention” program is highlighted—an initiative that offers emergency financial assistance to at‑risk youth who are at risk of becoming homeless.

The program’s closing segment focuses on the long‑term future. A panel of experts—ranging from city councilmembers and state legislators to economists and housing specialists—discuss how Oregon can maintain a balance between revenue growth and public service funding. The discussion touches on potential policy changes: expanding the state’s tax base, increasing the cap on rent control (to allow landlords to recover costs), and implementing a “wealth tax” on the highest‑earning residents to help fund public services. The panelists argue that without a comprehensive approach, Oregon risks falling behind other states in terms of both the quality of life for residents and the stability of its public finances.

Key Takeaways

1. Homelessness is a growing crisis: Portland’s homeless population has increased by roughly 15 % in the past year, with more people living unsheltered and a shortage of affordable housing driving the problem.

2. New tax measures are central to the solution: Oregon is introducing a small social‑services sales tax and has expanded its housing trust fund to generate dedicated revenue for homelessness and related services.

3. Community partnerships are essential: Local nonprofits, city agencies, and state legislators are working together to implement innovative solutions such as converting vacant properties into housing and offering targeted financial assistance.

4. The debate continues: While tax increases are necessary to fund the city’s housing needs, critics caution that they must be carefully designed so as not to harm low‑income residents.

5. Future policy will shape the state’s trajectory: How Oregon balances its tax structure, housing policy, and public service demands will determine whether the state can sustain its reputation as a leader in progressive policy while addressing its most urgent social issues.

The Politics Now segment delivers an in‑depth look at how Oregon’s cities and state are confronting the intertwined challenges of homelessness and public finance. With a blend of data, community stories, and policy analysis, the broadcast serves as a crucial resource for anyone wanting to understand the current state of affairs and the future direction of Oregon’s social and fiscal priorities.