4 Best Neighborhoods in Portland, OR: A Guide for Homebuyers

When you type "Southwest Portland" into Zillow from a laptop somewhere out of state, you get a wildly inaccurate picture of what's actually happening on the ground. Southwest Portland isn't one place. It's two, sometimes three, depending on which invisible county line you cross, and that line changes your annual property tax bill by thousands of dollars every single year you own the home.

Yes. And it matters more than it sounds.

Let's take a look at four Southwest Portland neighborhoods that locals actually live in, shop in, and raise families in. Two of them, Multnomah Village and Hillsdale, are inside the city of Portland, which means Multnomah County property taxes. The other two, Raleigh Hills and Garden Home, are in unincorporated Washington County, which means a meaningfully lower annual tax bill for the same home value. Same general feel, same drive time to downtown, but a very different number on your closing statement and every year after.

This isn't a generic neighborhood countdown. This is the same advice we give every relocating buyer before we even schedule showings, because picking the wrong one for your situation means you could end up paying thousands more in taxes for a location that could have cost you less right across the county line, or missing out on the walkable town center you actually wanted because you filtered by price alone.

Table of Contents

• Multnomah Village: Walkable Historic Charm Inside Portland
• Raleigh Hills: Mid-Century Suburban Feel with Washington County Taxes
• Garden Home: Eclectic and Unincorporated Between Beaverton and Southwest Portland
• Hillsdale: Walkable Town Center with OHSU Proximity
• Comparing the Four: Which Area Fits Your Priorities?
• Conclusion

Multnomah Village: Walkable Historic Charm Inside Portland

Multnomah Village is inside the city of Portland, Multnomah County, and it has a rhythm all its own. Independent bookstores, coffee shops, restaurants, a cocktail bar or two, the Multnomah Arts Center. There are Saturday food carts, a post office, the Grand Central market, and a real sense of place that doesn't get replicated in newer build neighborhoods. The village has two business areas, what I call upper deck and lower deck, so you've got more than one spot to grab coffee or meet a friend.

The home stock here is beautiful. Bungalows, craftsmen, some midcenturies from the '30s and '40s. Tree-lined streets that feel like they've been here for 80+ years, because they have. The character does not get replicated anywhere in newer construction. You'll see some townhomes and condos mixed in, and some newer townhomes from the last 20 to 30 years, but for the most part, this is eclectic housing trying to get close to the village center.

Gabriel Park and Walkability

You're right next to Gabriel Park, which is not a pocket park. We're talking real acreage here, sports fields, a dog park, a community garden, trails. It's the kind of park you can spend an entire day in. There are even some cottage cluster style homes near the park.

Multnomah Village has sidewalks on both sides of the street, which is not a given in Southwest Portland. You'll see walkers, joggers, people meeting friends for coffee. The walkability is part of the appeal, and it's part of what you're paying for.

Pricing and Inventory

You're probably looking from the $800s to over a million depending on the size and exact location. There are some opportunities below that, but for the most part, this area does command a higher price point. Inventory is scarce because it's such a small area, and that scarcity keeps prices elevated.

The Multnomah County Tax Reality

Here's the honest note about Multnomah Village: because you are in Multnomah County, you are paying a property tax rate that is meaningfully higher than just a few blocks away in unincorporated Washington County. The tax line runs invisibly through the whole Southwest Portland area. Same home value, 20 minutes apart, maybe less, can come with a very different annual property tax bill every year, compounding over the whole time you own it.

I walk buyers through this before we even tour, because the tax difference is not trivial. It adds up year over year. If you're comparing a $900,000 home in Multnomah Village to a $900,000 home in Raleigh Hills, the annual tax bill could be thousands of dollars different, and that difference repeats every single year you own the property.

Who Multnomah Village Works For

Multnomah Village works well for buyers who want walkable urban character, historic home style, and who value the trade-off of being inside Portland proper for the culture, the walkability, the sense of place, even at the higher county tax rate. You're close to freeway access, downtown Portland, and Washington Square Mall. You've got apartment complexes in the area, and you've got a real community heartbeat.

If you're willing to pay the Multnomah County premium for the village feel, this is one of the best places to live in Southwest Portland.

Raleigh Hills: Mid-Century Suburban Feel with Washington County Taxes

Raleigh Hills is technically unincorporated Washington County. You're not inside the city of Portland here, even though you're only a few blocks west of that line.

Same general feel, same drive time to downtown. Blink and you'd never know you crossed anything at all. But it's a different county, a different tax rate, different city services. The home stock here shifts a bit too.

Raleigh Hills is dominated by mid-century homes, ranches, splits, daylight ranches. You've got larger lots than what you would expect to find in the city core. We're talking quarter acres, third of an acre, some even half an acre or more. Mature landscaping, and a really quiet suburban feel.

Character Homes on Premium Lots

Every house is different. You've got ranches with big lots, mid-century moderns, some 1930s and '40s Tudors or saltbox-style homes. You've even got these little tiny small bungalow-type things that are just really cute and precious on these streets.

These homes sit back off the road enough, but they all have beautiful landscaping, lush landscaping, hedges, gardens. Some of these houses feel like they're straight out of a Nancy Meyers movie. People have lovingly updated and taken care of these homes and have really honored the look and feel through the decades.

A lot of one-level homes, which is hard to find in Portland. These are older homes, so they're not going to be fully modernized, but a lot of people have put a lot into them to keep them maintained.

Amenities and Location

You've got the Raleigh Hills community park with playing fields and open space right in the middle of the neighborhood. The Raleigh Hills Public Library is charming, and they've got some trails around there you can walk.

You're just moments from Sunset Highway, which matters if you're commuting west towards the tech corridor or east towards downtown. You're really close to Beaverton Hillsdale Highway, which if you go west takes you deeper into Beaverton and the tech corridor. If you go east, you're heading into downtown Portland.

You're not far from premium shopping. You've got a Fred Meyer, La Provence French bakery (a really well-known breakfast and lunch spot), New Seasons Market, Trader Joe's. Pretty much everything is at your fingertips. You're not driving a long distance to get anywhere. You can actually take the back roads to downtown Portland from here without getting on a freeway, but you're also close to 217.

Pricing and the Washington County Advantage

Most of the homes we're showing you in Raleigh Hills are a million plus. These are homes that a lot of people want to get into because this is a fairly flat neighborhood for being Southwest Portland.

And here's the piece I always circle back to: the same home value in Raleigh Hills can be a real annual savings compared to just going across into Southwest Portland proper, where over 10 or 20 years of ownership, that difference is not trivial. It adds up year over year. That's why we always point it out.

No Sidewalks, But Plenty of Walkers

You're not going to see sidewalks in Raleigh Hills. We didn't do sidewalks back then. But you are still going to see all the walkers, and you're going to see people out and about because they just take advantage of it. They don't care.

Who Raleigh Hills Works For

Raleigh Hills works well for buyers who want that suburban feel, the mid-century home stock, and that Washington County tax rate, with all the daily life benefits of being right on Portland's doorstep.

Garden Home: Eclectic and Unincorporated Between Beaverton and Southwest Portland

Garden Home sits between Beaverton and Southwest Portland. It's one of those neighborhoods that only locals really know about by name, and I love this one because the name is not just decorative.

Garden Home actually gets the name from its horticulture history. There used to be flower nurseries and greenhouses throughout the area here. The anchor of Garden Home is the Garden Home Rec Center and the Garden Home Community Library sitting next to each other, and that combo gives this neighborhood a real community heartbeat.

The Most Eclectic Area of the Four

The home stock here is a lot of mid-century, ranches, split levels, generously sized homes on decent lots. But you'll see 1930s, '40s, and '50s mixed in too. Super eclectic here. You've got older homes from the '60s and '70s to new construction infill and everything in between. You've got some small acreage stuff, some city-sized lots, you've got townhomes, and they just kind of intermix with everybody.

This is probably one of the most eclectic areas in the tour today. Garages you can actually use, yards you can actually barbecue in and have parties in. And you're still in Washington County, so the same property tax advantage that applies in Raleigh Hills, lower annual bill than the Multnomah County side of the drive.

Location and Access

Garden Home sits right at the edge of Beaverton's employment corridor while still feeling residential and quiet. It sits behind Washington Square Mall on your way to Southwest Portland. It's kind of that transitional area after you leave Tigard.

What's interesting about this area is it has a 97223 zip code, which is technically Tigard, but it's Southwest Portland. And it's also unincorporated Washington County, which basically means you can kind of do more with your property. You're not under the city restrictions.

A lot of people love that because there was actually an Airbnb boom during and after COVID where a lot of people were seeking properties in this area because you could do Airbnbs without falling under the Multnomah County restrictions and rules. If you want to add a shop, if you want to run a business, there's just a lot of things you can do in unincorporated Washington County that you just cannot do in Portland.

Retail and Commute

You've got a retail area with a 7-Eleven, Ace Hardware, Starbucks, Dairy Queen. There's kind of one area that has some density of stores, but there's no real heart or town center like Multnomah Village or Hillsdale.

Locationally, this area sits up against 217 freeway. You can get on 217 really fast. You've got back roads into Lake Oswego, Tigard, Beaverton. You're probably 15 to 20 minutes from downtown Portland. You're right up against Redtail Golf Course and Washington Square.

Pricing

The prices in this area aren't too bad either. You're not paying a lot of houses over a million dollars in this area. You're probably in the $600s to some that butt up against a million, but a lot of houses in this area are going to be in the $700s and $800s, depending on the size and location.

Who Garden Home Works For

Garden Home works well for buyers who want that established Southwest Portland feel, mid-century homes, the benefit of the Washington County property taxes, and easy access to the tech corridor without being right smack dab in the middle of it. If you want a little more flexibility with what you can do with your property, unincorporated Washington County is a real advantage.

Hillsdale: Walkable Town Center with OHSU Proximity

You are back inside the city of Portland here. This is Multnomah County again. Hillsdale is an established Southwest Portland neighborhood with a walkable town center that a lot of visitors don't even know exists until they wander into it by accident.

The Town Center

They've got Saturday markets that run seasonally, and that pulls a lot of people from all over the Southwest area. Brewpubs, restaurants, a coffee shop that everyone in this town has an opinion about. Food pods, or food carts, depending on what you call them, where you can stop and choose from a variety of vendors.

You've got the Portland Ballet headquarters, the Hillsdale Market with a variety of vendors, Salvador Molly's (they usually have a contest once a year for the hottest pepper eating contest), Market of Choice for shopping, banking, bakeries, nail salons. Everything you need to live your day-to-day life is right here.

Home Stock and Variety

The home stock is where it gets really interesting. You've got craftsmen, Tudors, mid-century, some newer infill construction mixed in with everything else. Which means when you're shopping in Hillsdale for a home, you're often comparing four very different eras of home on potentially the same street.

And that variety is part of what makes it feel established, not cookie cutter at all. You can see prices lower than the $800s around this area for little tiny bungalows, but for the most part, the housing here is usually $800,000 to a million or more depending on the size, location, and what it has to offer.

OHSU Proximity and Professional Demand

Hillsdale has an interesting proximity story that should be mentioned. You are within minutes of Oregon Health Science University (OHSU), which is one of the largest employers in this area and in the entire state. And that drives a lot of demand for a specific slice of professional buyers who need to be near campus. This helps keep values here resilient even when the broader market shifts.

We're in the Terwilliger section of Hillsdale right now, and if you've heard the word Terwilliger, you know we're really close to OHSU. We're close to the Chart House restaurant, which is up on a hill, fine dining with a nice view of downtown Portland.

The Feel of the Neighborhood

It's very dense with trees. This feels very rainforesty. But that's the beauty of this area of Hillsdale, it's got a lot of trees, a lot of density. You don't feel like we're all living on top of each other. There's a sense of nature mixed with livability.

Capitol Highway goes through the downtown Hillsdale area and towards downtown Portland. If you go to the right off Capitol Highway, you're going to head towards downtown Portland. So we're super close without being in downtown. A lot of professionals who have to commute downtown or want to be close to downtown tend to like this area. And there is public transportation up and down this road and all throughout the Southwest Portland area.

Pricing and the Multnomah County Premium

You are in Multnomah County, so the same property note about property taxes applies here. It's very similar to Multnomah Village, higher than Washington County. But the walkable town center, the OHSU proximity, and the variety pack of home styles is what you're paying for as a buyer.

The housing here is accessible. It's really close proximity to a lot of medical care and various organizations. So it typically commands that location premium. People just like to be in this location. It's really close to a lot of amenities, specifically close to downtown. And there are parks in the area.

Hilly Terrain

Be prepared, this area is fairly hilly. You're going to see a ton of walkers, joggers, runners, even though it's fairly hilly. This is your cross-training.

Who Hillsdale Works For

Hillsdale works well for buyers who want a walkable community, a mix of home styles to choose from, and professional convenience, especially if anyone in the household is connected to OHSU or the broader healthcare corridor.

Comparing the Four: Which Area Fits Your Priorities?

Four Southwest Portland neighborhoods, two counties, every single one with a different feel, a different price point, and a different property tax bill.

Here's how to think about the trade-offs:

Choose Multnomah Village if you want walkable historic charm right inside Portland, you value the village center and Gabriel Park, and you're willing to pay the Multnomah County tax premium for that sense of place and culture. You're looking at $800s to over a million, and inventory is scarce.

Choose Raleigh Hills if you want mid-century suburban feel with the Washington County tax advantage, larger lots, mature landscaping, and quiet streets. You're moments from Sunset Highway for commuting west to the tech corridor or east to downtown. Most homes are a million plus, but your annual tax bill will be meaningfully lower than Multnomah County.

Choose Garden Home if you want the most eclectic area of the four, the flexibility of unincorporated Washington County (Airbnbs, adding a shop, running a business), and easy access to the tech corridor. You're looking at $600s to approaching a million, mostly $700s and $800s. No real town center, but you're close to everything and you've got surprising inventory variety.

Choose Hillsdale if you want a walkable town center with real character, OHSU proximity, and a mix of home styles from craftsmen to mid-century to newer infill. You're in Multnomah County, so the tax rate is higher, but you're paying for the walkable community, the professional convenience, and the resilient demand that comes with being minutes from one of the state's largest employers. You're looking at $800,000 to a million or more.

The county line runs invisibly through Southwest Portland, and the same home value can come with a very different annual property tax bill every year, compounding over the whole time you own it. That's the piece that nobody thinks about until they're at the closing table with the house they want to buy.

Conclusion

Pick the wrong one for your situation, and you could end up in a neighborhood that doesn't exactly fit your commute and your preferences, or paying thousands more in property taxes for a location that could have cost you a lot less right across the county line.

If you're relocating to Portland and you want to talk through your specific situation and figure out which of these Southwest Portland neighborhoods is actually the right one for you, call or text me directly at 503-804-1466. 

We create articles like this every week for buyers who just need a little more refinement before they start touring in person. We've got a free relocation guide that walks through a lot of the areas we cover, so you have a better sense of what might work best for you when you're coming to Portland to either tour or buy.