Oregon — Oregon ranks among the nation’s less affordable states, as housing costs and the broader cost of living continue to consume a substantial share of household income.
Oregon placed No. 39 among the 50 states for affordability in the current U.S. News & World Report Best States rankings. Because states are ranked from most to least affordable, Oregon’s position makes it the 12th-least affordable state nationally.
The ranking is considerably poor, although it does not place Oregon as close to the bottom as some other affordability studies have suggested.
Become a Paid Subscriber for Exclusive Content Access and Support Independent News
U.S. News calculates affordability using two principal measures: cost of living and housing affordability. The analysis draws upon federal data to compare what residents pay for housing, goods and services with household income.
Oregon’s position reflects the high cost of housing in much of the state, particularly in the Portland metropolitan area, Central Oregon and other communities experiencing strong demand and limited housing inventories.
The state’s housing shortage developed over years in which population growth outpaced construction. Between 2015 and 2019, Oregon added approximately three residents for every new housing unit permitted, according to Oregon Housing and Community Services.
State housing officials estimate that approximately 242,000 Oregon households have extremely low or very low incomes. Only about 113,000 homes are both affordable and available to those households, leaving a deficit of approximately 128,000 units.
Housing is generally considered affordable when a household spends no more than 30 percent of its income on rent or mortgage payments and related expenses. Spending above that threshold can leave families with less money for food, transportation, health care, child care and other necessities.
Nearly half of Oregon’s approximately 620,000 renting households are considered rent burdened, according to an Oregon Journalism Project examination of state housing conditions. About one-quarter spend at least half of their pretax income on housing.
The financial pressure is not limited to rent or mortgage payments. Utilities, insurance, maintenance and other recurring expenses also affect the cost of maintaining a home.
A separate 2026 Common Sense Institute analysis ranked Oregon as the fifth-least affordable state when income was compared with the combined cost of housing, groceries, transportation, child care, insurance, health care and taxes. That study used a broader methodology than U.S. News and therefore produced a different ranking.
The institute estimated that the annual cost of essential expenses for a representative Oregon household increased by approximately $18,300 between 2019 and 2025. Shelter and utilities increased by roughly one-third during that period, while modeled child care expenses increased by more than half.
Pioneers in Holistic Oral Care
The difference between the studies illustrates how affordability rankings depend on the expenses, income measures and time periods included. U.S. News places Oregon at No. 39, while studies incorporating taxes, child care and additional household costs have ranked the state closer to the bottom.
Affordability also varies widely within Oregon. Home prices and rents are generally lower in many eastern and southern Oregon communities than in Portland or Bend. Those communities, however, may offer lower wages, fewer employment options and more limited access to health care, child care and other services.
The U.S. News ranking indicates that Oregon is not among the country’s very most expensive states, but it remains substantially less affordable than most. Increasing housing production and achieving income growth that outpaces household expenses will be central to improving the state’s position.
About the Author
Discover more from Right Now Oregon
Subscribe to get the latest posts sent to your email.
