SALem — Midway through 2026, a cluster of construction projects and redevelopment proposals is quietly remaking parts of downtown Salem and nearby commercial corridors. Some works are already visible on the skyline, while other long-empty parcels that have blighted the city for years are finally seeing new proposals.
Citizen Apartments rises where city hall once stood
At the corner of High and Chemeketa streets, crews are framing the six-story Citizen Apartments, a 105-unit mixed-use building that will change the look of the downtown core. Deacon Development, the firm behind the Rivenwood Apartments that opened in 2024, bought the property at 277 High St. NE and began construction in October.
The $25 million, 78,855-square-foot project includes 16 affordable units provided through the city's Multiple-Unit Housing Tax Incentive Program. Planned amenities aim to attract a mix of residents and include a coffee bar, fitness center, secure bike storage, EV parking, parcel lockers and a roof terrace with city views. Completion is scheduled for early spring 2027.
Long-empty sites show signs of life
Several longtime vacancies are also moving toward redevelopment. The former Rite Aid building downtown has been eyed for transformation, and work is under way or proposed for other blighted assets including the old JCPenney building and the long-vacant lot locally known as "the pit," created when a bank building was demolished in 2017.
Deacon originally owned the parcel that includes the pit but later sold that portion while continuing with the Citizen Apartments next door. Across the city, Kuebler Village — a commercial development near the Costco on Kuebler Boulevard — remains under construction, joining other projects that are changing Salem’s retail landscape.
- Citizen Apartments: 105 units, 16 affordable units, $25 million, completion early spring 2027.
- Kuebler Village: Active commercial development near Costco.
- Vacant retail conversions: Former Rite Aid and JCPenney buildings have proposals or activity.
The wave of projects reflects a push to rebuild downtown density and to redevelop long-vacant commercial parcels that have eroded the city’s urban core. Developers and city officials have pointed in recent years to a combination of market demand, incentive programs and renewed investor interest as drivers for those changes.
| Project | Location | Key facts |
|---|---|---|
| Citizen Apartments | High & Chemeketa streets | 105 units, 16 affordable, $25M, 78,855 sq ft, early spring 2027 |
| Kuebler Village | Near Kuebler Blvd & Costco | Commercial development under construction |
| Former downtown retail | Various (Rite Aid, JCPenney, "the pit") | Proposals or early-stage work to repurpose long-empty buildings/lots |
For residents and local businesses, the developments bring mixed implications. New housing in the core can expand downtown foot traffic and support local shops and restaurants, while conversion of large vacant retail spaces can reduce blight and restore property tax revenue. The inclusion of affordable units in projects such as the Citizen Apartments shows an attempt to thread housing policy goals into private development.
Still, questions remain about how quickly projects will move from construction to occupancy, how new retail and service businesses will fare in a changing market, and whether downtown infrastructure and transit will keep pace with increased density. The projects underway in the first half of 2026 set a tone: Salem is actively trying to translate long-discussed redevelopment plans into visible change.
As work continues through the rest of the year, city leaders and developers say they are watching schedules, financing and tenant interest closely. For residents, the most visible markers — cranes, scaffolding and new storefronts — will be the clearest signs that downtown Salem is shifting from long vacancy toward renewed activity.
