This study focuses on the effects on the housing market, particularly the loss of affordable housing. It builds upon earlier studies to consider a broader interpretation of displacement that encompasses not just when a household is forced to move by conditions that affect the dwelling, but also to take into account changes in the neighborhood as a whole. These neighborhood changes can result in a neighborhood’s inability to provide basic services that make it impossible to continue residency as a “voluntary” response. Housing in Portland is almost exclusively produced by the private sector, with a limited public sector role through regulation, incentives, and some direct construction. The study recommends a market-conscious approach to gentrification embracing new principles that allow for:

• An inclusive development paradigm with a racial/ethnic equity lens.
• A recognition of how public investments affect the private market.
• Ways to anticipate housing demand and market changes.
• Options for utilizing the public sector to regulate and engage a range of private development and community actors to minimize the effect