Hermiston Development Sets High Mark in 2024

Local commercial, industrial, and residential construction permits were valued at $266 million in 2024, a record-breaking year for growth and development in the City of Hermiston. This figure represents the value of building and improvement permits issued throughout the year.

“The strong development performance we saw in 2024 is a testament to Hermiston’s continued growth as a hub for business and residential investment,” said Mark Morgan, Hermiston City Manager. “These aren’t just numbers on a page; they represent real-world investment in our community and increase the housing inventory, add jobs, and grow the tax base.”

<< Read the 2024 Hermiston Growth & Development Report >>

The primary driver of Hermiston’s record-setting development figures was industrial growth. The South Hermiston Industrial Park (SHIP) saw significant private investment, with major projects underway in the energy/information sector and the transportation/warehousing sector. This diverse investment in SHIP underscores Hermiston’s growing appeal to a range of industries and follows approximately $2 million of public infrastructure investment by the City, Umatilla County, State of Oregon, and Federal Economic Development Department in 2021 and 2022.

Housing development remained robust in 2024 with 89 new housing unit permits issued, continuing a trend of strong performance observed since 2018. The numbers are lower than the peaks of 2020 and 2021 which were driven by historically low interest rates, but 2024’s activity is strong by historic standards.

The city anticipates even more new home construction in 2025, thanks to several large-scale developments that broke ground in late 2024. While interest rates are expected to decrease, significant new tariffs on imported materials may offset the savings for developers.

“Our focus is on keeping local development costs as affordable as possible,” Morgan added. “Broader factors like interest rates and tariffs increasing material costs are beyond our control, but we’ve been working to create an environment that supports builders and buyers alike.”