Oregon’s housing shortage is fueling one of the busiest construction cycles in decades. With a growing population, changing laws, and shifting demographics, the state is seeing a wave of projects aimed at affordability, density, and smarter land use.
At Cetan Funds, we’re seeing firsthand how these trends are shaping opportunities for developers, builders, and investors statewide. According to the U.S. Census Bureau, Oregon’s population is projected to reach 4.83 million by 2030, a 41% increase since 2000, and climb to 5.43 million by 2040.
As demand for housing and commercial real estate accelerates, here are five key trends shaping Oregon construction right now and where investors can find opportunity.
#1. Fewer Regulatory Barriers to Housing and Development#
For years, affordable housing failed to keep up with demand, as reported recently by the consulting firm ECOnorthwest in the Oregon Housing Needs Analysis. Now, state lawmakers are pushing hard to clear the way for new construction.
- HB 2001: This bill opened the door to duplexes, triplexes, townhomes, and cottage clusters in larger cities, making land use more efficient and projects more profitable. In regions like Bend, this was a game-changer, according to construction companies like Arbor Builders. “Instead of being limited to single-family projects, you can now maximize land use by spreading infrastructure costs across multiple units,” they write in a recent post. “This means stronger returns, better density in neighborhoods where demand is high, and natural protection against vacancy risk—since multiple units on one parcel reduce exposure if one becomes vacant.”
- HB 2138 (Proposed, 2025): Governor Tina Kotek’s proposal builds on HB 2001 by expanding middle housing into unincorporated urban areas, limiting restrictions on density, and encouraging single-room occupancies.
- SB 1537 (2024): This bill supports housing production through expanded urban growth boundaries, infrastructure funding, and climate-smart incentives. It encourages walkable, energy-efficient development and expands affordable housing opportunities.
- Portland’s Residential Infill Project: This initiative and its second phase have led to more than 1,400 new permitted units between 2021 and 2024, showing how policy changes can spark middle housing growth.
#2. Middle Housing, Townhomes, and Multifamily Growth#
With zoning laws evolving, “missing middle” housing (duplexes, townhomes, and small multifamily projects) is booming in cities like Portland, Bend, and Eugene.
As more multifamily development continues to expand in 2025 and 2026, this is expected to have ripple effects for Oregon’s urban markets. At Cetan Funds, we have proudly supported multifamily and middle housing projects across the state, including this apartment complex commercial construction loan for an eco-friendly investor acquiring a 12-unit complex in Portland, Oregon, as well as this duplex Fix and Flip loan in Eugene, subdivision developments, and more.
These projects provide multiple income streams, meet strong rental demand, and often come with lower vacancy risk than single-family homes. This trend is expected to accelerate through 2025–26 as investors target affordable, higher-density opportunities.
#3. Infill Housing: Building Smarter Within City Limits#
Infill projects repurpose vacant or underused land within cities, reducing environmental impact and revitalizing neighborhoods.
Cetan Funds recently provided financing for an infill project in North Eugene where the borrower divided a longtime rental property into six separate tax lots creating the opportunity for five new housing units. The ability to move quickly with private financing made the project possible and brought the opportunity to add much-needed housing to a high-demand area.
For investors, infill means leveraging existing infrastructure, keeping costs down, and targeting areas where housing demand is already strong.
#4. Increased Focus on Suburban and Rural Markets#
Rising housing costs and remote work have pushed more buyers toward suburban and rural areas, where affordability, space, and quality of life stand out.
At Cetan Funds, we are seeing growth in every corner of the state. However, areas south of Portland are experiencing a particularly strong demand for new construction and investment opportunities, such as this residential construction loan we funded in Klamath Falls, Oregon for four homes.
Keep an eye on counties like Marion, Polk, Benton, Lincoln, Linn, Lane, Douglas, Coos, Curry, Josephine, Jackson and Klamath. Projects range from starter homes to fix-and-flips to small subdivisions, opportunities traditional lenders often overlook. As a local direct lender, Cetan Funds can finance projects anywhere in the state, helping investors unlock value in underserved markets.
#5. A Continued Expansion of Mixed-Use Developments#
Mixed-use projects that include combining residential, commercial, and recreational spaces continue to gain traction.
For investors, these projects represent resilient, diversified assets that appeal to local buyers and renters looking for convenience and lifestyle amenities that only urban mixed-use developments can offer. According to Schwabe’s 2025 Real Estate & Construction Outlook, 63% of firms now prioritize mixed-use projects for their ability to deliver diversified income, walkable communities, and long-term resilience.
These projects also offer investors strong returns and appeal to renters and buyers seeking convenience and lifestyle amenities in one location, like this mixed-use project we funded in West Linn.
Looking Ahead#
Oregon construction is entering a new era of affordability, density, and smarter land use. Builders, borrowers and investors who stay ahead of these trends—and work with financing partners who understand them—will be best positioned to seize opportunities.
At Cetan Funds, we provide the capital and expertise to move quickly on Fix and flip projects, subdivisions, commercial, multi-family or mixed-use developments, and more.
Ready to bring your next project to life? Want to invest in Oregon real estate? Contact us today to explore tailored financing solutions and investment opportunities together.
BORROWER FAQs#
What is a Private or Hard Money Loan?
Private and hard money loans come in many variations, but most are short-term loans provided by an investor or group of investors when conventional financing is unattainable or undesirable.
Most private lenders and hard money lenders, like Cetan Funds, finance projects like fix and flip rehabs, rental properties, commercial bridge loans, land development, and many other unusual or unconventional properties and projects. A private or hard money loan can help real estate investors, developers, builders, and small businesses grow their portfolios and businesses faster than they could on their own.
Here at Cetan Funds, we empower people to build wealth through real estate.
Why choose hard money vs. bank loans?
Hard money (or private) loans are built for speed and flexibility. Banks often require months of paperwork, strict borrower qualifications, and rigid underwriting standards. At Cetan Funds, we base our lending decisions primarily on the value and potential of the property, not just the borrower’s financial profile. This means we can finance properties and projects banks typically decline due to condition, complexity, or unusual circumstances.
Hard money loans are ideal for time-sensitive opportunities like fix-and-flip projects, new construction, or land development.
Where Does the Money You Lend Come From?
Cetan Funds offers two pooled private equity fund investments for Oregon residents who qualify and accredited investors. Our two funds, called Cetan Income Fund and Cetan Opportunity Fund, serve as the primary source of capital for the loans that Cetan Funds originates.
Rather than matching individual investors to individual loans, or borrowing capital from banks or Wall Street as many hard money lenders do, at Cetan Funds, we manage our own pool of funds. The investors own shares of their fund limited liability company and the principals of Cetan Funds manage the portfolio of loans owned by the fund. All loans are serviced by Cetan Funds. To learn more about the advantages of this structure, please contact us.
What Types of Loans Does Cetan Funds Finance?
We can lend on most commercial and residential property in Oregon and SW Washington if the loan is for business or investment purposes. We provide short-term financing for bare land, land development, new construction, rehabs, and residential and commercial bridge loans.
Do You Lend on Primary or Secondary Residences?
No. We can only lend for business or investment purposes and do not lend on owner-occupied residential properties. Check out our blog to learn more about what we do and what we don’t do.
Where Do You Lend?
We lend exclusively in Oregon and SW Washington because we know the market well and are committed to helping grow our local market. We lend primarily in Western, Southern and Central Oregon with an occasional loan in Southwestern Washington.
Do You Only Look at the Property/Collateral?
While we are primarily a “collateral-based lender,” we do not solely look at the property/collateral. In our experience, who you lend to is just as important as what you lend on.
We strive to build long-term relationships with our borrowers, and we cannot achieve that if we focus solely on their real estate. So, we also take into consideration character, capacity, capital, and other conditions.
Weighing these important factors, which are often overlooked by other private and hard money lenders, helps us accurately measure risks for both our borrowers and our investors while allowing us to offer better all-around results for our clients.
Do You Have Minimum or Maximum Loan Sizes?
How Long Are Your Loans?
We offer loans as short as 3 months and as long as 60 months; however, most of our loans are for 6 to 12 months. Plus, we build in automatic extensions to every loan to ensure borrowers have time to deal with unexpected events and circumstances.
What Are Your Application and Underwriting Requirements?
Cetan Funds loans are customized to fit each specific scenario. Therefore, application and underwriting requirements can often vary depending on the situation. Typically, we require the following:
For Applications:
- Cetan Funds Business Loan Application (online form, link provided by your loan officer)
- Personal financial statements for all loan guarantors (form provided)
- Property/project description
- Summary of construction or investment experience (if applicable)
For Underwriting:
- 2 years of tax returns for all loan guarantors
- 3-6 months of bank statements
- Project/property-specific documentation (such as purchase/sale agreements, lease agreements, business financials, etc.)
- Detailed rehab or construction plans and budgets (if applicable)
Please contact us for more information on the application and underwriting requirements for your specific scenario.
How Fast Can I Get a Loan Decision?
How fast is funding?
We pride ourselves on moving quickly. Loan decisions are typically made within 1–2 business days, and pre-approval can often be issued just as fast. Once approved, we can close and fund in as little as 3–5 business days, depending on the project and documentation. That speed lets you secure capital and act on opportunities without the delays common with traditional lenders.
Can I Get Pre-Approved?
How Fast Can You Fund and Close a Loan?
As quickly as 3-5 days.
What is Your Minimum Down Payment?
What Are Your Interest Rates?
Rates vary depending on the project. Typically, annual interest rates are 10-12%. Interest is only charged on the outstanding balance. Therefore, interest is not charged on construction or rehab funds until they are drawn. So, for most of our short-term construction and rehab loans, borrowers actually incur far less than 10-12% in interest expense. For more information, please contact us.
What Are Your Loan Fees?
Origination fees vary depending on the project. Typically, origination fees are 2-4% of the loan amount. We also charge a $995-$1,495 administrative fee at closing.
Can I Live in the Property While I Have This Loan?
Unfortunately, no. Our borrowers cannot live in the residential properties we finance for them.
The only exception is in very specific commercial loan scenarios. If you wish to get a loan on a property you would like to live in now, or in the future, please contact us so we can help you find a lender for that. We are happy to help.
Can I Pay Off My Loan Early?
Do You Fund Rehab and Construction Loans?
On Rehab or Construction Loans, Do You Charge Interest on the Full Loan Commitment?
No. Interest is only charged on the outstanding balance.
How Do Construction Draws Work With Your Loans?
Construction draws are typically disbursed for work completed, materials purchased, or subcontractor invoices ready to be paid. Borrowers work directly with their loan officer, their main point of contact from start to finish on the project, to submit draw requests up to twice per month.
We do not charge fees for construction draws. Draw requests include a breakdown of the items awaiting reimbursement or payment, evidence showing the completed work or materials on site, and copies of subcontractor invoices or receipts over $2,500-5,000. Draws are typically processed in 24-48 hours.
Do You Fund Loans on Bare Land?
Yes, we provide bare land loans. Each situation is different. Please contact us for details.
Do You Finance Mobile or Manufactured Homes?
What is “Cetan”?
Cetan comes from the Lakota language and means “hawk spirit.” We chose it to represent the values we bring to lending: vision to see opportunities, loyalty in building long-term relationships, and speed in delivering funding when it’s needed most.
Supporting local organizations like the Cascades Raptor Center also helps us honor that connection to hawks and our beautiful raptors in the Pacific Northwest while giving back to the community.