Portland Housing Affordability

Housing affordability is more than the price of homes for sale or rent. Affordability for a given area is determined by average wage for that city vs. the cost of housing. We write annual reports on Portland’s overall affordability rate here and point out the most affordable suburbs around Portland.

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Portland Real Estate Affordability Rate: 2023 Report

April 10, 2023

Housing affordability in Portland is a concern that has been brought into the spotlight due to factors like rapid population growth (which has begun to drop), inflation combined with income rates failing to meet higher costs of living, and both increasing rent and high mortgage insurance rates. What is Portland’s Affordability Rate in 2023? To calculate housing affordability, The National Association of REALTORS® uses a formula that assumes a homebuyer has a 20% downpayment and a 30-year fixed rate mortgage of 6.36% (per Freddie Mac). RMLS utilizes this formula to generate a quarterly affordability graph for the Portland Metro area. As we can see in the graph above, a family earning the median income of $106,550 (per HUD) could afford...

Portland Housing Affordability Rate, 2022 Report

April 4, 2022

We recently wrote about Oregon’s growing population, with many of its migrants being Californians looking for more affordable housing. While this may come as a surprise to Portlanders who have faced increasing rents and home prices, Portland is still more affordable than many west coast cities. But what about those who have lived in the Portland metro area for years? How is the city’s level of affordability affecting them? And how does Portland’s affordability stack up against other cities in the country? We looked into it all and here’s what we found. What is Portland’s Affordability Rate in 2022? RMLS provides a quarterly affordability chart for the Portland metro area. They use the NAR formula for housing affordability: Affordability is...

Top 5 Most Affordable Portland, Oregon Suburbs

March 11, 2022

Continued low inventory and rising real estate prices have complicated the ease of finding a home for many, both here in Portland and across the country. Many have questioned the affordability of living in Portland proper. Many have fled to the suburbs (which at least were cheaper than the city proper). As we wrote about in our 7 Top Real Estate News Stories of 2021 article, while real estate prices are expected to rise throughout 2022, the rate of these increases should slow down (though they haven’t yet). Will this have an impact on home sales in Portland, or will people still want to flee to the suburbs for a quieter, more affordable lifestyle? This question is just as pressing...

affordable portland suburbs

5 Most Affordable Portland Suburbs in 2021

July 30, 2021

Unless you’ve been living off the grid, you’ve likely heard that soaring home prices have plagued the Portland metropolitan area – and the country – all year. So of course, the question of affordability looms. How much longer will home prices keep shooting up? Will this mean that Portland no longer ranks as an affordable area to live in? And the truth is that Portland’s affordability does appear to have taken a hit. So while we write this article once a year, this year the topic is more pressing than ever. Suburbs provide an excellent alternative to living in city limits for many home buyers. For one thing, you’re bound to be able to afford more space. And while we...

As Portland Home Prices Soar, Home Affordability Takes a Hit

July 12, 2021

Low inventory and rising home prices have made themselves felt here in Portland, as they have across the country. According to the latest numbers from Fannie Mae’s Home Purchase Sentiment Index® (HPSI), 64% of respondents feel that right now is a bad time to buy a home, while 77% feel it’s a good time to sell. Buyers, especially first time buyers, are feeling the sting of lack of affordability pushing them out of the market. So how does Portland shape up in comparison to the rest of the country? We’ll take a look at ATTOM’s recently released affordability data for the second quarter of 2021 to find out. Portland Home Prices Grew Faster Than Wages To consider affordability, you can’t...

Portland Condo Market: the Affordable Choice for 2021

June 21, 2021

If you’ve been looking for a new home and are on a budget, you might be laughing at our headline right now. Affordable? Does affordability even exist in Portland these days? Trust us, then, that not only do plenty of affordable homes exist in Portland but that many are condos. Stay with me. The word condo can conjure up images of high-end penthouses in glass-lined skyscrapers. But the truth is, Portland’s condo market is actually a haven for housing affordability. Right now the demand for single family homes keep holding at record highs. And that means more competition and higher prices. So with those prices still soaring, anyone budget-conscious should consider checking out Portland’s condo market. You might be surprised...

Portland Home Affordability Rate: 2021 Report

March 5, 2021

Housing affordability is a universal and complex topic. So is the global pandemic we’re all navigating. Portland’s shortage of inventory hasn’t helped housing affordability over the past year, nor has it shown any signs so far of slowing. When it comes to buying a home in Portland, how should prospective buyers wade these troubled waters? First and foremost, let’s educate ourselves. How is affordability calculated, and how does it affect the average buyer? What are the primary forces influencing the market right now? The more you understand about the Portland real estate market, the more you’ll be able to cash in on the most affordable home for you. How Affordable Is Portland Real Estate? According to the latest RMLS data,...

portland real estate suburbs

2020’s Top 5 Most Affordable Portland Suburbs

July 27, 2020

Despite the pandemic setback to the real estate market this spring, home prices in Portland are as strong as ever, especially at the low-to-mid range of the market. While this is great news for homeowners, those shopping for a home — especially a first home — can feel a bit daunted.  Fortunately, the Portland metro area, spanning three Oregon counties, offers plenty of options. And while the definition of “best suburb” can be difficult to pin down, “most affordable” is a little easier. These five Portland suburbs were selected for coming in with the lowest median sale price. But because things are changing so rapidly, we also included the July 2020 median home value for the area, as indexed by...

portland housing affordability

Portland Housing Affordability in 2020: More Homes Needed

April 20, 2020

Housing affordability is a big question facing presidential candidates as well as local decision-makers here in Portland, including those who are looking to buy or sell a home in the metro area. While some worry that the coronavirus or COVID 19 situation will crash the Portland real estate market, our current prediction is that it will not. Demand is still too high and our low inventory is about to get even lower. While we will see a major drop in overall real estate transactions, our real estate market will continue forward. For all the reasons why this is the case, or for the latest updates, check out our most current Portland real estate market news section. Taking a look at...

portland condo market

Portland Condo Market: Affordable Choice for 2020 Home Buyers

March 27, 2020

Are you looking for a Portland home on a budget? Maybe it’s time to give condos a second look. Consider the following:  Condo buyers have more options. As of March 2020, there were 470 homes listed on the Portland real estate market for under 400K. In the same price range, there were 570 condos available. Visit Portlandhomesforsale.com for all condos and townhomes currently for sale in the Portland metro area. At the low end of Portland real estate values, condos rule. The top 38 cheapest homes currently listed for sale in Portland (not including manufactured or mobile homes) are condos. Currently the median list price for a Portland condo, according to Fidelity National Title, is just over $430,000. That’s usually...