If you’ve ever watched It’s a Wonderful Life, you probably remember how George Bailey dreamed of leaving his small town—only to realize in the end that everything he truly needed was right there all along.
That’s exactly how many people feel when they discover the First Addition Neighborhood (FAN) in Lake Oswego. It’s one of those places that just clicks—and once you’re there, it’s hard to imagine living anywhere else.
Here’s why so many people love calling First Addition home—and a great example of what living here can actually look like if you move into our new listing at 540 2nd Street.
1. Storybook Charm
From cozy cottages to classic picket fences, First Addition has that rare, small-town feel that’s getting harder to find. It’s not just charming—it’s nationally recognized, having been named one of the 10 Best Cottage Communities by Country Living.
2. Truly Walkable Living
This is a neighborhood built for walking. Think tree-lined streets, front porches where neighbors actually say hello, and shops, restaurants, and everyday essentials just a few blocks away. It’s no surprise it was named one of 10 Great Neighborhoods in America. And that walkability isn’t just a nice idea—it’s real.
Take our new listing, for example at 540 2nd Street: a rare opportunity right in First Addition where you can step outside and be just minutes from restaurants, shops, and even the Lake Oswego Farmers Market.
3. A Refreshingly Eclectic Mix
No cookie-cutter homes here. You’ll find everything from English cottages and Craftsman bungalows to Prairie and Ranch-style homes.
That variety also shows up in the way homes function. This featured property is a great example—it offers something you don’t see every day:
- A ground-level space with its own private entrance, zoned for commercial use
- Perfect for a home office, small business, or studio
- Or easily used as a guest suite, in-law space, gym, or bonus living area
It’s that kind of flexibility that makes First Addition especially appealing for today’s lifestyle.
4. Everything Close to Home
Within just about 120 acres, First Addition packs in a lot:
- A top-rated public library
- A neighborhood park
- A post office
- A community pool
And homes here are designed to make the most of that lifestyle. In our new listing, you also get access to shared courtyards for outdoor seating, adding even more space to relax and connect.
5. Alleys That Add Character
One of the more unique features? The alleyways. Many homes have garage access from behind, which keeps the streets pedestrian-friendly.
This listing includes a detached one-car garage, fitting perfectly into that classic First Addition design.
6. Rich History
Dating back to 1888, the neighborhood is filled with mature trees, established gardens, and a sense of history you can feel.
Inside our new listing, though, you still get modern comfort—like an updated kitchen with new stove and dishwasher, plus an open-concept main level filled with natural light and a cozy fireplace.
7. A Track Record That Speaks for Itself
One of the things that stands out most about First Addition is how well it holds—and grows—its value.
When I first wrote about this neighborhood back in 2013, home prices ranged from $175,000 to $1.25 million.
Fast forward thirteen years, and this year’s sales have ranged from $490,000 to $3.425 million.
That kind of appreciation doesn’t happen by accident. It’s driven by everything we’ve talked about here—location, walkability, charm, and a strong sense of community. It’s one more reason First Addition continues to be one of the most sought-after neighborhoods in Lake Oswego.
8. An Easy Commute
With transit options nearby, getting into Portland is simple. Many residents can walk to the transit center and be downtown in about 30 minutes. Or hop on Highway 43 and be in downtown Portland in 20. And you can be on I-5 headed north or south in just about 6-10 minutes.
Of course, in this new listing, the ideal setup for professional office or retail space means your commute could just be a few steps away.
9. Close to Forest Hills Elementary
Forest Hills Elementary is within walking distance for many residents, and its fields and playground are a favorite gathering spot for families.
10. A Built-In Shopping District
From groceries to coffee to everyday services, everything you need is close by.
That’s part of what makes this particular home so appealing—you can truly live a car-light lifestyle here.
11. A Strong Sense of Community
First Addition isn’t just beautiful—it’s connected. Neighbors know each other, local businesses are part of the fabric, and the neighborhood association keeps that sense of community strong.
A Home That Fits the Lifestyle
This 2-bedroom, 2-bath home is a great example of what makes First Addition so special:
- Flexible live/work or multi-use layout
- Bright, open main living space
- Two spacious upstairs bedrooms for privacy
- Separate-entry lower level with endless possibilities
- Low-maintenance living with HOA covering exterior, utilities, and common areas
It’s rare to find something that blends location, flexibility, and ease of living this well. All this at a listing price of $750,000.
Why It Matters
First Addition isn’t just about homes—it’s about how life feels.
It’s walking to coffee.
It’s running into neighbors at the market.
It’s having a home that adapts to your life, not the other way around.
And when a property comes along that truly reflects that lifestyle—like this one—it’s worth taking a closer look.
If you’re curious about this home or what else might be available in First Addition, we’d be happy to help you explore your options.
Kevin Costello kevin.costello@cascadehasson.com 503.939.9801
Riley Costello riley.costello@cascadehasson.com 971.322.6205
52 Reasons to Love Lake Oswego 