The Oregonian’s weekly look at the state’s economic indicators.

Oregon housing construction nearly ground to a halt in the aftermath of the Great Recession, with the number of new homes under construction falling by nearly 80%.

The economic slowdown didn’t stop new residents from moving here, though, and the resulting squeeze was one of the main reasons why house and apartment prices soared at the beginning of this decade.

Construction has rebounded somewhat over the past several years and state economists expect it will continue growing for the foreseeable future. That’s helped ease the rise in housing prices. Yet until population growth slows, Oregon may continue to deal with an unbalanced real estate market and continued increases in housing prices.

Josh Lehner, with the state’s Office of Economic Analysis, analyzed new Oregon housing permits relative to the number of new residents in the state. He said the level of permits per new resident statewide was down 23% in the years after the Great Recession compared to a 20-year stretch beginning in 1983.

Lehner’s January analysis found that multifamily construction is growing strongly in the Portland area but much less quickly in other parts of the state. So while rent increases are easing in the city, he said pressures remain elsewhere.

However, in an updated analysis last month, Lehner wrote that the picture has improved somewhat. The pace of construction appears to be slowing in and around Portland, he wrote, but seems to be picking up in the rest of Oregon.

“A bit more growth in new construction, when coupled with a slowing population outlook, should result in a somewhat better balance in the housing market,” Lehner wrote.

Even if construction growth eases in the coming years, he said migration into Oregon is likely to cool off, too, as the state’s economic expansion matures. He said that’s likely to help bring balance back to the state’s housing market.

-- Mike Rogoway | twitter: @rogoway | 503-294-7699