Oregon’s lack of affordable housing isn’t new, but the degree to which it is increasingly unaffordable to live in this state demands urgent action from all stakeholders. 

That’s the findings of Oregon’s first State of the State’s Housing report, released this month by Oregon Housing and Community Services, the state’s housing finance agency. The report examines the changes across Oregon’s housing market over the past decade, from 2013 to 2023, and concludes that population growth and the underproduction of housing, along with high interest rates and the global COVID pandemic, caused housing prices to skyrocket, making Oregon one of the least affordable states in the nation. 

The report acknowledges that while housing was not particularly affordable in 2013, the launch point for the study, it was more aligned with the economic realities of the time. Ten years ago, more than half of all Oregonians had a household income that qualified them to purchase the average home. Since then, wage growth has lagged far behind home costs, and by 2023, only 29% of households could afford a typical home. Among the state’s findings:  

• The median sales price of a home in Oregon increased 7 times faster than income over the past decade: For every dollar Oregonians earned in wage increases between 2013 and 2022, the median sales price of a home increased by $7.10. 

• Today, one out of every three homeowners in Oregon is considered housing cost burdened, paying more than 30% of their income on housing costs, exceeding the federal standard for affordability. 

• The average single-family home in Oregon still costs 11% more than pre-pandemic levels, equivalent to an additional $520,000, and high interest rates undermine any recent gains in affordability. 

• Oregon falls short by 128,000 units affordable to households with very low or extremely low incomes. 

Oregon’s Black, Indigenous and People of Color (BIPOC) communities, which have historically been excluded from home buying opportunities, continue to face significantly lower rates of homeownership — 15% lower than their white counterparts. For Black homeownership specifically, that gap doubles to more than 30%. Since 2018, the average home was already unaffordable for every demographic group in Oregon except white and Asian individuals. 

Between 2003 and 2023, Oregon’s population grew by more than 753,000 residents, representing a 21% increase. Preliminary figures from the Oregon Housing Needs Analysis, scheduled for its first comprehensive release in December, suggests Oregon will need to add 500,000 housing units over the next two decades to begin alleviating supply issues, among other barriers to affordability. 

Oregon’s housing situation exposes an urgent need for collaborative, comprehensive and sustainable solutions if it is to meet the demands of its growing population, the report states. 

Habitat for Humanity Portland Region is working to help meet our community’s need for safe, affordable homes. In the past four decades, Habitat has built and repaired homes for more than 3,000 people across Multnomah, Washington, and Clackamas counties. In just the past year, Habitat built and sold 50 homes, representing 150 people who now have a secure and affordable place to call home. And our Home Repair Program helps homeowners to stay in their homes by alleviating health and safety issues and completing needed home improvement projects, allowing seniors and people with disabilities to age in place. 

Additional findings 

The State of the State’s Housing report points out the downward pressure rising housing costs can have on labor markets if employees are unable to afford a home in the community where they work. Oregonians who rent are experiencing rapid rent increases that have eroded the wage gains experienced over the past five years. 

• More than 50 cents of every new dollar an Oregon renter earned was consumed by rent hikes. 

• Rent increased 17% between 2020 and 2023. 

• One in three Oregon renters is now considered severely cost-burdened by federal standards, paying more than 50 percent of their income on housing costs. 

• 14 of the top 20 fastest-growing occupations have average wages insufficient to afford a one-bedroom apartment in Oregon. 

• Foreclosures and eviction cases have rebounded to pre-pandemic levels since COVID-era protections ended: The number of eviction cases filed in 2023 was the highest Oregon has seen since 2011. 

A direct consequence of the housing crisis is homelessness. Cost burdened households face financial insecurity, which can lead to people facing evictions or foreclosures, losing their housing, and falling into homelessness. 

• In the past decade, the number of people without a home in Oregon increased by 45%, or 6,320 individuals. 

• When adjusted for population size, Oregon ranks third in the nation for people experiencing homelessness, with more than 20,000 individuals experiencing homelessness. 

• Oregon ranks first in the nation for unsheltered homelessness among families with children, with the number of children experiencing unsheltered homelessness in the state being 14 times higher than the national average. 

Oregon Housing and Community Services has committed to producing a State of the State’s Housing report every two years to help inform strategic plans and decisions on investing public resources.

Habitat for Humanity Portland Region remains committed to its belief that all people deserve a safe and affordable place to call home to achieve the strength, stability, and independence to build a better life for themselves and their families.