NEWBERG, Ore. — A first-of-its-kind housing project is underway in Newberg aimed at expanding attainable homeownership options for middle-income earners.
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Housing Innovation Village Experience, or HIVE, located at 3509 N. College St., broke ground Dec. 5, 2025. Spearheaded by the Newberg Workforce Housing Consortium, the Missing Middle Housing Fund, and SEDCOR, and supported by state funding and private partners, the project aims to begin site and utility work by June 2026, with completion expected by September or October.
“This is the first in the country that it’s ever been done,” said project lead Ryan Olsen. “It’s funny that it’s happening in this little town, Newberg, because this is the first place we’re trying this, with the hope of bringing it across the country or world.”
HIVE is designed as a cluster of 10 modular homes ranging from 525 to 1,500 square feet, arranged around a central corridor. Units are being developed to target households earning roughly 80% to 120% of the area median income and are expected to sell in the $300,000 to $400,000 range, according to Olsen.
“A close friend of mine is a Head Start teacher doing really good work,” Olsen said. “He told me one day that he could never afford a home or get ahead because he cares about people, and those jobs don’t always pay well. That really sparked something in me, and we started working on this idea.”
The Missing Middle Housing Fund notes that housing for those earning between approximately 80% and 120% of the area median income is the segment built least often due to high costs and a lack of traditional subsidies, leaving many middle-income households underserved by existing housing stock.
This segment does not include low-income housing, which is typically categorized as households earning less than 80% of the area median income. In Newberg, the area median income is approximately $113,750 per year, according to census data.
Olsen said the team focused on identifying the most expensive baseline costs of home construction, particularly labor and materials. To address those costs, the project incorporates modular construction, with some units projected to be completed from “start to move-in” in as little as two weeks, and most within a month. Proponents say this approach could significantly reduce construction time and cost.
“You can’t build a car by hand and make it affordable,” Olsen said. “It’s why the assembly line was invented. But if I can illustrate that I built the car, show how we can scale, and then show the returns, then we’re on to something. It’s a grand experiment.”
Project leaders have partnered with several housing innovators, including Unbrick USA, which specializes in next-generation factory-built housing; Humankind Homes, which focuses on fire-, flood- and hurricane-resistant concrete masonry homes; Mahonia NW, a developer of sustainable cottage cluster communities using panelized construction; Mods PDX/HONE Modular, which integrates mass plywood panels into modular construction; Elemental Building Technologies, a modular steel-frame construction company; and CedarStone Design & Build, which specializes in sustainable mass timber homes and prefabrication systems.
Beyond targeting middle housing pricing, Olsen said community design is a central component of the project. Plans call for eight homes arranged in a horseshoe shape around a large central courtyard, a layout he described as a micro village. He said the idea was inspired by the book “The Village Effect,” which examines the mental and physical effects of multigenerational village living.
“The other point of HIVE is to create a micro village,” Olsen said. “The community is a welcoming, nonthreatening space that’s got a fire pit, rooftop deck, community gardens — plenty of places for people to spread out and be alone if they want, but with the option for community connection when they need it.”
The HIVE initiative stems from broader regional efforts to address housing underproduction and workforce housing shortages. The Missing Middle Housing Fund, a nonprofit focused on reducing the costs and time associated with building workforce housing, has played a key role in connecting partners and providing project resources.
According to the fund’s website, it supports workforce housing projects and innovations that reduce barriers to housing production at scale, including investment funds, workshops, and pilot projects. It defines missing middle housing as units serving middle-income households that have historically been underproduced relative to market demand.
State support has also been instrumental, Olsen said. The Newberg Workforce Housing Consortium, which includes local employers, nonprofits, and economic development organizations, secured $3 million in state funding to support housing development through a revolving investment fund managed by the Workforce Housing Investment Fund. The fund is intended to finance predevelopment costs for workforce housing, with returns reinvested into future projects.
At the January 20 City Council meeting, project partners emphasized HIVE’s potential to serve workers who struggle to find attainable housing — including educators, health care workers, and service-sector employees — and to provide a model that could be replicated in other communities.
“My goal for HIVE is that it’s replicated across the country,” Olsen said. “I’d love to see a HIVE in Park City, Idaho, Pittsburgh, Santa Barbara — this could be something that goes global.”
Project advocates also noted that workforce housing availability affects employers’ ability to attract and retain workers and supports long-term economic resilience.
A similar housing effort has emerged locally through SPARK Newberg, a nonprofit project formed by area business leaders that aims to provide affordable housing and financial training over 48 months while helping residents save for down payments. That project remains in the planning phase after securing $740,000 in construction excise tax funds.
With predevelopment work scheduled for mid-2026, project partners will continue preparing for construction while engaging prospective buyers and housing innovators. HIVE also plans to host open house events over multiple weekends after completion to showcase the homes to the public.
Correction Feb. 3 at 3 p.m. — the original story stated the development would have eight homes. The development will have 10 homes. Newsberg regrets the error.
Correction Feb. 4 at 2:10 p.m. — the original story stated the development was at 3508 N College St. The development is at 3509 N College Street. Newsberg regrets the error.
