A new state report has found housing prices have far outpaced wage growth in Oregon, leaving many unable to buy a home and struggling to pay rent.
The Oregon Department of Housing and Community Services found the least affordable places to buy a home in Oregon are Hood River and Bend. Corvallis, Eugene and Medford round out the top five least affordable cities in the state.
Portland is in the top ten cities for unaffordability in Oregon, and has houses that are more expensive than some of the cities higher on the list, but also has much higher wages.
Statewide, only 29 percent of Oregon residents could afford to buy a home last year, according to the report. Households of color were even less likely to be able to afford a home.
Delia Hernández, spokesperson for the state housing agency, said population growth far outpaced housing production for years. High interest rates, and slow wage growth, has also decreased 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 said Oregon needs to build 500,000 housing units to meet the demand.
Many of Oregon’s renters are also struggling with the high cost of housing. According to the report, half of the state’s renters pay more than a third of their income in rent. Households of color and people with disabilities are more likely to be renters, and more likely to spend a significant portion of their income on rent.
Hernández said Oregon now has a housing action plan and is working to launch more affordable housing projects.
She said the state also now offers down payment assistance, financial education and other resources to help those who need it most.
