Oregon — Oregon is facing a worsening housing crisis, with new data showing affordability in sharp decline and housing production trailing far behind state goals. Portland, in particular, has emerged as one of the most troubled metro areas in the country, according to national research. As housing costs rise and supply remains constrained, many Oregonians are finding it increasingly difficult to buy or rent homes.
Portland Ranked Worst Among U.S. Metros for Housing Outlook
A recent study from LendingTree analyzed housing markets in the 100 largest U.S. metropolitan areas, examining four key metrics: vacancy rate, new housing permits, home value-to-income ratio, and year-over-year change in that ratio. Portland ranked worst overall, with a combination of tight supply and poor affordability indicators.
Portland’s vacancy rate is just 4.76%, the fourth lowest in the nation, suggesting extremely limited availability of both for-sale and rental properties. The city’s home value-to-income ratio is 5.57, meaning the median home costs more than five and a half times the median household income. This puts Portland among the top 15 least affordable metro areas in the U.S.
Worse still, Portland’s affordability trend is headed in the wrong direction. The city experienced a 2.57% increase in its home value-to-income ratio from 2022 to 2023—one of the sharper jumps in the country. While other western metros like Boise, ID and Bridgeport, CT also performed poorly, Portland’s combined metrics place it at the top of the crisis list.
Statewide Housing Production Falls Short of Goals
While Portland’s housing challenges are particularly acute, the problem extends across Oregon. In an effort to address the shortage, Governor Tina Kotek set an ambitious goal in 2023: build 36,000 new housing units per year. But the state is nowhere near that target.
As noted in a report from Right Now Oregon, only 17,697 residential permits were issued statewide in 2023—less than half of what is needed. In early 2024, the state was on pace to fall even further behind, with just 14,270 permits projected for the year. Lawmakers and housing advocates have voiced concern that at the current pace, Oregon could meet less than one-third of its annual housing goal.
Republican legislators have criticized what they describe as regulatory obstacles to housing development, including burdensome land use laws and slow permitting processes. They’ve proposed expanding developable land, investing in local infrastructure, and reducing regulatory barriers in order to boost supply.
Homeownership Slipping Further Out of Reach
For Oregonians trying to buy a home, affordability has become a major hurdle. According to a report from the Oregon Employment Department, between 2017 and 2023, the median listing price of homes increased by 46%, while median household income grew by only 42%. Over the same period, the average 30-year mortgage rate rose dramatically—from 3.0% in 2021 to 6.8% in 2023—driving up monthly mortgage payments and reducing purchasing power.
These changes have increased the share of household income required to afford a median-priced home, particularly in metro areas. In counties like Deschutes (Bend) and Washington (Beaverton), home prices are so high relative to income that many households are priced out of the market entirely.
Oregon’s Rental Market Also Strained
Homeownership is not the only segment in distress. The rental market has also seen a sharp rise in costs. Between 2019 and 2023, the median rent for a one-bedroom apartment in Oregon increased by $154, or 14%, according to a companion report on rental affordability from the Employment Department.
As a result, a growing share of renters are considered “rent-burdened,” meaning they spend more than 30% of their income on housing. In some areas, nearly half of all renters fall into this category, especially low-income households and people living in high-demand cities like Portland, Eugene, and Bend.
Looking Ahead
The data from LendingTree and Oregon’s own agencies paint a sobering picture: rising prices, limited supply, sluggish construction, and mounting burdens on both homeowners and renters. Portland’s status as the least favorable metro for housing prospects underscores the severity of the crisis.
About the Author
