The Future of Housing in Oregon: How Cottage Communities Fit Into the Missing Middle Solution

Filed in Regulations 
March 5, 2025

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Earlier this week, we had the opportunity to join Governor Tina Kotek and a group of housing advocates in a conversation about Oregon’s housing future. It’s not every day that we get to sit at the table with policymakers shaping the path forward, and it was both humbling and energizing to share our perspective on how cottage communities can be part of the solution.

If there’s one thing we’ve learned in nearly a decade of designing and building small homes, it’s that the housing crisis isn’t about any one factor—it’s a puzzle with many moving pieces. Policy, infrastructure, financing, and zoning all play a role in making housing more accessible. And while change can be slow, conversations like these remind us that momentum is building in the right direction.

Jesse Russell, CEO & Founder of Hiatus Homes, Speaks to what HB 2138 means to developers. Video Courtesy of KPIC


Why Cottage Communities Matter

For us, this work has always been about more than just building houses. We believe in creating places that feel connected, where neighbors aren’t strangers and where homes are designed with purpose. Cottage communities help fill the gap in the “missing middle”—offering an alternative to traditional single-family homes and high-density apartments.

The beauty of these neighborhoods is that they provide an attainable path to homeownership, especially for those earning 80-120% of the local area median income (AMI). In markets like Bend, where the median sales price is over $700,000, smaller homes offer a more accessible entry point compared to traditional single-family residences. They also make better use of land, fit within existing neighborhoods, and give people an option beyond oversized homes that no longer match the way they actually live.

Oregon has been a leader in pushing for smarter, more flexible housing solutions, and Governor Kotek’s support of reforms like HB2138 is a promising step forward. Reducing regulatory barriers and encouraging creative solutions isn’t just good policy—it’s how we make real progress in addressing the housing shortage.

“By streamlining the building process, it will help create beautiful, livable spaces for working families, retirees and your professionals much faster and more efficiently.”

– Jesse Russell, Hiatus Homes CEO


A Shared Vision for Oregon

Being part of this conversation reinforced something we’ve always believed: the future of housing isn’t just about building more—it’s about building better. Thoughtfully designed, small-scale housing can help solve big problems, but it takes a collaborative effort between developers, builders, city planners, and policymakers to make it happen.

We’re grateful to be part of this movement and to keep pushing for housing solutions that make sense for real people. If Oregon continues to lead the way, we hope other states will follow.

Some other great takes from the event:

KGW: Oregon Lawmakers Push Housing Reform Bill

Oregon Capital Chronicle: Governor Kotek’s Push for Housing Options

Bend YIMBY: HB2138 and Its Impact

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