The city of Hermiston set a record for growth and development in 2024 with local commercial, industrial and residential construction permits totaling $266 million. Development at the South Hermiston Industrial Park was a major factor in the permitted job value.

HERMISTON — The city of Hermiston set a record for growth and development in 2024.

According to a press release from the city, local commercial, industrial and residential construction permits totaled $266 million. 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,” Hermiston City Manager Mark Morgan said. “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.”

Hermiston’s record-setting development was driven by industrial growth.

The 2024 capital improvement projects and budgets include:

Downtown water line replacement — reopened in November with a budget of $2.02 million.

Well No. 5 capacity expansion — completed in March with a budget of $1.03 million.

Lift Station No. 4 reconstruction — reopened in November with a budget of $786,000.

Sidewalk infill projects — budgeted for $200,000.

Southeast Ninth Street water, sewer and street — completed in June with a budget of $2.92 million and privately funded.

The projects focused on upgrading infrastructure to support community growth and improve city services.

The South Hermiston Industrial Park saw significant private investment, with major projects underway in the energy, information, transportation and warehousing sectors.

SHIP investment highlights Hermiston’s growing appeal to various industries and follows approximately $2 million of public infrastructure investment by the city, Umatilla County, the state of Oregon and the U.S. Economic Development Administration in 2021 and 2022.

“Our focus is on keeping local development costs as affordable as possible,” Morgan said. “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.”

Housing development remained robust in 2024, with the city issuing 89 new housing unit permits, continuing a strong growth trend since 2018, according to the press release.

The 2024 Hermiston growth and development report shows that since 2020, the city has issued permits for 637 new housing units, 476 other types of housing projects, 108 income-restricted apartment units and 66 manufactured homes.

Although the numbers are lower than the peaks of 2020 and 2021, when interest rates were at historic lows, 2024’s activity was strong.

According to Portland State University, Hermiston’s estimated population is 20,177, an increase of 823 since the 2020 U.S. Census.

The city anticipates even more new home construction in 2025 because several large-scale developments broke ground in late 2024.

While interest rates are expected to decrease, significant new tariffs on imported materials may offset the potential savings for developers.