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.
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General Investor FAQs
What is Cetan Income Fund’s Investment Objective?
Cetan Income Fund and Cetan Opportunity Fund (the “Funds”) are real estate debt funds that deliver consistent and attractive risk-adjusted returns to investors who seek preservation of capital and income.
Who Manages The Fund?
Our CEO, Mary Merriman, manages the Fund and lending operation. She has over 40 years of lending experience, holding a variety of executive-level positions at banks and an economic development lending organization. Steven Yett is actively involved in daily operations, fund management, and business development. Zach Smith is also an integral part of the team, leading loan originations and other business development activities. To learn more, please visit our Meet the Team Page or contact us.
Can Anyone Invest?
Cetan Income Fund: This Fund is only open to accredited investors with a net worth of $1,000,000 excluding their primary residence, or annual income of $200,000 for single filing status or $300,000 for joint filing status. This Fund is open to investors from anywhere in the United States.
Cetan Opportunity Fund: This Fund is only open to Oregon residents with either 1) a minimum annual gross income of $70,000 and a minimum net worth of $70,000 excluding their home, home furnishings, and automobiles; or 2) a minimum net worth of $250,000 excluding their home, home furnishings, and automobiles.
Can I Invest with IRA Funds?
Yes. Investors with a Self-Directed IRA account can invest in the Fund. Currently, we are well below our 25% threshold.
If you do not have a Self-Directed IRA account, we can help you create a self-directed IRA (SD-IRA) account and use those funds to invest in the Fund. Please contact us with questions and a list of IRA custodians we have worked with in the past.
How Do I Track My Account Balance?
We provide investors a secure online investor portal to access subscription documents, quarterly statements, fund financial information, investor updates, and tax documents.
How Do I Withdraw My Investment?
Every equity investment has a 12-month “lock-up” period where withdrawals are only allowed for hardships and early withdrawal fees may apply. After this “lock-up” period, investors may withdraw at any time with at least 60-day notice.
How is Risk Mitigated?
Management actively monitors our real estate debt fund and mitigates risk by deploying several strategies:
1. We maintain a diversified portfolio of loan types, loan purposes, and geographic locations in Oregon and SW Washington. Our loan types consist of residential and commercial loans with subtypes of new construction, rehab, acquisition and development, and bridge/term. We only finance business-purpose loans that provide funding for purchases, refinances, rehabs, new construction, and development.
2. The portfolio’s weighted average loan size is typically below $500,000, so our transactions are small. Therefore, the projects tend to be more resilient given the high demand for affordable housing and when faced with conditions that negatively affect the real estate market.
3. Generally, our loan-to-value (LTV) ranges are from 60-75% in Cetan Income Fund and 65-80% in Cetan Opportunity Fund, with a portfolio target of a weighted average LTV at 65% or less for Cetan Income Fund and 70% or less for Cetan Opportunity Fund. To determine value we complete an internal evaluation that uses a variety of sources, including an Automated Valuation Model, Broker Price Opinions, as well as our direct sourced market and comparable data. On properties with a unique purpose or for larger loans, we typically order appraisals.
4. Loans are typically secured with first position liens. Cetan Opportunity Fund may also selectively fund loans secured with second position liens.
5. In Cetan Income Fund, loan terms range from 6-36 months with the weighted average asset life in the loan portfolio target of 12-15 months. In Cetan Opportunity Fund, loan terms range from 6-60 months with the weighted average asset life in the loan portfolio target of 15 – 21 months.
6. We use leverage minimally as it is not a permanent funding strategy. Cetan Income Fund has a bank line of credit that is used to meet temporary liquidity needs but rests it at $0 frequently during the year. Cetan Opportunity Fund, on the other hand, was recently launched in 2023 and does not currently use leverage. Once the Cetan Opportunity Fund reaches $5 million in assets under management, we may establish a bank line of credit to use to meet temporary liquidity needs. Management will always limit leverage in both Funds to a maximum of 20 – 25% of assets under management.
Why Do Banks Not Make These Loans?
This is because of several factors, including regulatory constraints, banks’ large overhead expense making smaller loans unprofitable transactions, and obtaining a bank loan often takes too long, or the process of obtaining it is complicated and expensive.
Though the typical borrower is creditworthy, they are seeking a loan that is not readily available from traditional banks and credit unions. Cetan Funds addresses this credit and service void in the marketplace by taking reasonable risk while processing applications with speed, transparency, and accuracy.
What Distinguishes Cetan Funds From Other Non-traditional Lenders?
The Cetan Advantage is what sets us apart from other lenders. It provides borrowers superior lending experiences. As a result, our investors are well positioned to realize a positive investing experience as well. The Cetan Advantage embodies the following values:
- Expertise
- Partnership
- Efficiency
- Flexibility
- Integrity
How Are Returns Calculated and Earnings Distributed to Investors?
Both Funds fully distribute net income to all investors on a pro-rata basis quarterly. All investors are treated equally as we do not have a preferred return, classes of shares, or any other preferential treatment.
We close the accounting quarterly, derive the net income, and then our fund management software calculates the distributions to generate investor statements. Dividends may be withdrawn or reinvested in additional shares. Generally, it takes two to three weeks to close a quarter and distribute the earnings to investors.
Are Your Financial Statements Audited?
Yes, our financial statements are audited annually by a qualified CPA firm that specializes in private equity funds that include real estate debt funds and are posted for existing investors as well as available for interested investors.
What Type of Income Will My Earnings Be Considered?
Equity investors earn ordinary income and will receive a K-1 schedule for their tax returns. For IRA investors, Unrelated Business Taxable Income is generated but is limited to the amount of income that is generated from leverage; hence, it is a very small percent.
None of the information herein is to be construed as a solicitation, recommendation or offer to buy or sell any security, financial product, or instrument. Any projections or targets are aspirational only, are not guaranteed, and do not reflect past or current performance. Any report of past performance is no guarantee of any future performance. As with any investment, an investment in the Company is subject to risks, some of which could be substantial. No investment should be made in the Company by any investor who cannot afford to lose their entire investment. There are also restrictions on re-sale of Company securities and no investment should be made by any investor who cannot afford to hold the investment in the Company for a long period of time. This investment is only allowed and suitable for certain kinds of investors, who must have their investment status verified and confirmed in writing. No investment may be made, and no investment will be accepted unless the Company has received and approved the required written verification of each investor’s status.