Oregon faces a significant challenge as housing expenses continue to rise much faster than income levels, according to a recent report.
A recent state report reveals that housing costs in Oregon have significantly surpassed wage increases, resulting in many individuals unable to purchase homes and facing difficulties affording rent.
According to a recent report, Hood River and Bend have been identified as the most expensive areas for homebuyers in Oregon. The top five cities in the state with the highest affordability challenges include Corvallis, Eugene, and Medford.
Portland ranks among the top ten cities in Oregon for high living costs, featuring home prices that surpass those of some cities ranked even higher, yet it also benefits from significantly higher wages.
According to the report, just 29 percent of residents in Oregon were able to afford a home last year. Families of color faced even greater challenges in affording a home.
According to Delia Hernández, the representative of the state housing agency, the increase in population has significantly exceeded the rate of housing development for many years. Rising interest rates and sluggish wage growth have contributed to a decline in affordability.
“This didn’t happen overnight,” she said. “As we produce more housing, we’re playing catch up. We just need to produce more.”
She emphasized that there is a pressing need for Oregon to construct 500,000 housing units to satisfy the demand.
Numerous individuals renting in Oregon are facing challenges due to the elevated housing expenses. A recent report reveals that 50% of renters in the state allocate over one-third of their income towards rent. Renting is more common among households of color and individuals with disabilities, who also tend to allocate a larger share of their income toward housing costs.
Hernández announced that Oregon has developed a housing action plan and is actively pursuing the launch of additional affordable housing initiatives.
The state has introduced programs that provide down payment assistance, financial education, and additional resources aimed at supporting those in greatest need.