Zoning laws are changing and have changed to allow infill. Plus, there is an urban growth boundary which will force higher density.
The bottlenecks in Portland are the bridges and there is at least one bridge that cars can't drive on, only busses and transit and there will be more in the future.
There are entire streets where vehicle through traffic has been blocked in favor of bicycles. There are still bike lanes on the major roads a block away too which is why you probably didn't notice the dedicated streets.
Portland is being upzoned all over the place. look at any major street west of 82nd and you will see new apartment buildings on almost every block. The suburbs of Portland haven't caught up, but in 20 years if trends continue in both places I could see Portland being more dense than San Francisco and the suburban sprawl not ending till the sierras.