Mission Impossible: Oregonians Can’t Afford Housing in Their Homestate
PORTLAND – August 23, 2018
It’s well-known that the price of housing has risen dramatically in the U.S. for the last decade. Only a miracle can help the millennial generation afford their own houses, instead of renting until their dying days. Another proof of this sad state of affairs comes from Oregon: local media states that it’s almost impossible for Oregonians to own their own homes this year.
For instance, the typical Portland-area home is out of reach for a median-wage family, as new home-sale figures show.
The median home price, according to the Regional Multiple Listing Service, hit $417,900 in June.
At that price - assuming a 20 percent down payment, the area median family income of $81,400 and current mortgage rates - a formula devised by the National Association of Realtors - suggests a typical family would struggle to make monthly payments.
However, they likely wouldn't even get the chance to try. Most banks are unlikely to approve a loan if payments are even slightly out of reach.
The rate of rising prices has slowed somewhat. The median sale price fell in July to $401,600, following typical seasonal patterns, but it remains 1.7 percent higher than a year earlier.
This is the first time since the housing bubble peaked in 2007 that a median-income household can't afford a median-priced home in Portland. Last time the bubble burst, setting off an economic crisis and sending home prices plummeting.