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
0512_DataDig_Housing_Medford
0512_DataDig_Housing_Salem
0512_DataDig_Housing_Table
0512_DataDig_Housing_Top10States
According to a report from the National Low Income Housing Coalition, Out of Reach 2012, America’s Forgotten Housing Crisis, a full-time worker in Oregon needs a “housing wage” of $13.01 per hour in order to afford to rent a one-bedroom apartment at fair market rent (calculated by HUD at 40th percentile market rents). The average wage in Oregon of a full-time worker is $12.59 per hour. The biggest affordability gap in the state is in Columbia County where the average wage is $8.26 and the housing wage is $14.83. Portland has a small affordability gap because it has more multifamily housing and better-paying jobs; its housing wage also is $14.83 and its average wage is $14.33.

Van Vliet says persistent unemployment and underemployment have been most responsible for the inability of Oregonians to afford rents, as well as contributing to foreclosures. Hiring is slowly improving, though most of the new jobs are in the Portland metro area “so the recovery is going to be lopsided, and that’s going to put rural communities further behind,” she says. The five counties still suffering seasonally adjusted unemployment in excess of 12% in February were all rural: Crook, Grant, Harney, Jefferson and Lake. The statewide rate was 8.8%.

Within the state’s urban areas, Bend and Medford stand out as the least affordable housing markets, though both may be improving. In 2010, 48% of mortgage holders and more than 64% of renters in the two fast-growing metros were housing burdened. Since 2006 the burden hadn't changed for homeowners, but renters’ burdens grew 22% in Bend and 12% in Medford. Meanwhile, the Federal Housing Finance Agency’s All-Transactions Home Price Index, an indicator of single-family home prices and refinance appraisals, dropped 40% for Bend and 30% for Medford.

Bend also witnessed the most dramatic surge of another indicator of unaffordable homes: foreclosures. In Deschutes County, notices of homeowner default shot up from 45 in 2007 to 314 in 2010. John Helmick, CEO of Eugene-based Gorilla Capital, which buys, remodels and resells foreclosed homes, says that after peaking in 2010, this indicator is finally brightening in 2011: “Throughout all the 20 Oregon counties in which we track the data, we saw an average of 25% decline in the number of new foreclosures being filed, and we see that same decline continuing in 2012.”

Jaynee Beck, a realtor with Duke Warner Realty in Bend and president of the Central Oregon Association of Realtors, also has reason for cautious optimism on the ability of new buyers to afford a home. “Our market has really done a big correction,” she says, “and it’s brought a lot of the buyers back to our market that were priced out of it in the boom.” That includes many locals who grew up and worked in Bend but had to commute 45 minutes away to find affordable housing when the minimum price in Bend was about $300,00.

“Now we actually have homes under $100,000,” says Beck, “so those people can come back to Bend.

Brandon Sawyer is research editor for Oregon Business. He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .



 

More Articles

Launch

October 2014
Thursday, September 25, 2014
BY JESSICA RIDGWAY

October's Launch article features Soul Kitchen, Easy Company and Slick's Big Time BBQ.


Read more...

Two sides of the coin

Contributed Blogs
Monday, August 25, 2014
0825 thumb moneyBY JASON NORRIS | OB GUEST BLOGGER

Ferguson Wellman’s investment views on the economy and capital markets.


Read more...

100 Best Nonprofits to Work for in Oregon [VIDEO]

News
Thursday, October 02, 2014

Screen shot 2014-10-02 at 11.17.21 AMMore than 5,500 employees from 180 organizations throughout the state participated in the 100 Best Nonprofits to Work for in Oregon project.


Read more...

What I'm Reading

September 2014
Wednesday, August 27, 2014

Kim Ierian, President of Concorde Career Colleges, and Deborah Edward, Executive Director of Business for Culture & the Arts, share their recent reads.


Read more...

What I'm Reading

October 2014
Thursday, September 25, 2014

Nick Herinckx, CEO of Obility, and Jake Weatherly, CEO of SheerID, share what they've been reading.


Read more...

The 100 Best Nonprofits to Work for in Oregon 2014

October 2014
Thursday, September 25, 2014
14BY KIM MOORE

Proud, diverse and underpaid.

Pride in their organizations’ mission, fairness in the treatment of women and ethnic minorities, flexible work schedules — these are just a handful of workplace characteristics that employees of this year’s 100 Best Nonprofits appreciate about their organizations.


Read more...

Books Rule

October 2014
Thursday, September 25, 2014
BY JON BELL

Powell's stays relevant in the digital age.


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