Home Back Issues May 2012 Data dig: Is Oregon's housing affordable?

Data dig: Is Oregon's housing affordable?

| Print |  Email
Articles - May 2012
Monday, April 23, 2012
Article Index
Data dig: Is Oregon's housing affordable?
Page 2

By Brandon Sawyer

0512_DataDig_Housing_Oregon
0512_DataDig_Housing_Portland
0512_DataDig_Housing_Bend
0512_DataDig_Housing_Corvallis
0512_DataDig_Housing_EugeneSpringfield
Oregon arrived a little late to the housing crash and didn’t fall quite as hard as states like Florida and Arizona. But as real estate in some states begins to recover, prices here have continued to fall. Homes have lost about a quarter of their median value since their peak in 2007.

Meanwhile, household incomes are still reeling in the wake of the recession, pummeled by higher-than-average unemployment and wage stagnation. So even though home prices continue to fall, more Oregon homeowners and renters are spending in excess of one-third of their income on housing.

Housing costs that take more than 30% of a household’s income are considered unaffordable. The U.S. Department of Housing and Urban Development (HUD) uses 30% to figure low-income housing subsidies; lenders use it to determine mortgage qualification. Households paying more are deemed “burdened.”

In 2010 Census estimates indicate that 54.3% of Oregon renters were burdened, increasing 7% from 2006, while 42.8% of mortgage holders were burdened, a jump of 15% in five years.

One factor in expensive rentals is the state’s low inventory. The statewide rental vacancy rate in 2010 was 5.6%, the fourth tightest in the country.

Oregon’s homeownership is among the lowest in the nation and has fallen further since the recession. In addition, of all occupied homes in 2010, 37% were rented, the seventh-highest rate in the nation.

“There’s a lot of pressure on rental rates, and that’s probably because more people who had been in homeownership are now looking in the rental market,” says Margaret Van Vliet, director of Oregon Housing & Community Services, the statewide agency that administers federal money and tax credits for low-income housing. “There’s been hardly any construction of new multifamily [housing] for many years,” she adds. “The market is re-correcting but, in the meantime you’ve got folks who are really kind of stuck. So it’s a tough time across the whole spectrum of housing needs.”

 



 

More Articles

The short list: 5 companies making a mint off kale

The Latest
Thursday, November 20, 2014
kale-thumbnailBY OB STAFF

Farmers, grocery stores and food processors cash in on kale.


Read more...

The clean fuels opportunity

News
Monday, November 10, 2014
111014-dirtyfuel-thumbBY KIM MOORE | OB RESEARCH EDITOR

A market for low-carbon transportation fuels has a chance to flourish in Oregon if regulators adopt the second phase of the state’s Clean Fuels Program.


Read more...

100 Best Nonprofits announced

News
Thursday, October 02, 2014

100NP14logo4WebOregon Business magazine has named the sixth annual 100 Best Nonprofits to Work for in Oregon.


Read more...

What I'm Reading

November/December 2014
Wednesday, October 22, 2014

Peter Lizotte at ACME Business Solutions and Roger Busse at Pacific Continental Bank share their favorite reads.


Read more...

Gone Girl

News
Monday, September 29, 2014
roundup-logo-thumb-14BY LINDA BAKER | OB EDITOR

Wehby disappears, Kitzhaber fails to disclose and Seattle gets bike share before Portland.


Read more...

Downtime

November/December 2014
Wednesday, October 22, 2014
BY JESSICA RIDGWAY

Bob Dethlefs, CEO of Evanta, balances work and play.


Read more...

Podcast: Turn Things Around with David Marquet

Contributed Blogs
Friday, October 17, 2014
davidmarquet thumbBY TOM COX | OB BLOGGER

How can you move from a command-and-control leadership model to one of true empowerment and accountability? David Marquet did, and he took notes along the way.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS