Oregon’s affordability crisis deepens as costs outpace income growth; 5th least affordable state
PORTLAND, Ore. (CSI) -- Oregon ranks as the fifth least affordable state in the nation as rising costs for essential household expenses continue to outpace income growth. A new report from the Common Sense Institute finds that Oregon households must now spend approximately $18,300 more annually to cover basic needs compared to 2019.
The analysis, based on federal data and state-level modeling, shows that while headline inflation has begun to cool, the total increase in prices since the pandemic has reduced purchasing power across the United States. In Oregon, persistent housing shortages, rising energy costs and structural pressures have kept the state's affordability ranking unchanged since 2019.
Household incomes in Oregon increased by nearly 34% between 2019 and 2025. This growth slightly lagged the increase in expenses, which rose significantly faster in Oregon than the national average increase of $15,400. Overall, the report found that Oregon families have effectively lost 2.4% of their gross income to higher prices since 2019.
Zachary Milne serves as a senior economist at the Common Sense Institute. He explained that the gap between income and the cost of living has left many residents in a worse financial position than they were before the pandemic. "Headline inflation may be cooling, but affordability is still moving in the wrong direction," Milne said. "In Oregon, the cost of essentials has grown faster than incomes since the pandemic, meaning families are effectively worse off today than they were pre-2020."
Housing and utilities are primary drivers of the state's ranking. These expenses account for 21.3% of household income, making Oregon the 10th least affordable state for housing. Since 2019, the cost of shelter and utilities has increased by 33.4%, adding an average of $5,904 to annual household budgets.
Child care costs represent the 10th highest financial burden nationally for Oregon families, accounting for 19.2% of household income. Prices in this category increased by 55.4% between 2019 and 2025, which represents an annual increase of $7,530 per household.
Other essential categories also saw price jumps over the six-year period studied in the report. Groceries increased by $3,204, while car insurance rose by $947. Gasoline and health insurance costs grew by $488 and $180, respectively.
Beyond direct service costs, Oregonians face high structural financial pressures. The state has one of the highest tax burdens in the country. This includes the second-highest income tax burden in the United States, further contributing to the overall affordability challenges for local households.
