New study shows over half of Oregon renters are cost-burdened
Oregon is among the top dozen states in the U.S. with the highest percentage of cost-burdened renters, according to a new Harvard University Study highlighted in a KION 6 News article by Michaela Bourgeois on Jan. 29.
The study considers renters cost-burdened when paying more than 30% on rent and utilities. In the U.S., a third of renters are cost-burdened, and in Oregon around 50-57% are cost-burdened, along with California, New York, Florida, Texas, Nevada, Arizona, Colorado, Massachusetts, New Jersey, Connecticut, Louisiana, and Hawaii.
The study found a record-high 22.4 million renter households were cost-burdened in the U.S. and 12.1 million of those paid over half of their income for housing. The study also found the income bracket from $30k to $74,999/year had their cost-burden increase the most from 2019; both income brackets higher (2.2%) and lower (1.5%) also had their cost-burden increase from 2019. Overall, there was an increase of 3.2% from 2019, increasing cost-burdened renters to 50%.
The 56-page Harvard University study, “America’s Rental Housing 2024”, also includes Oregon as one of the states with the highest amount of rising homeless people. From 2015 until 2023, homelessness in Oregon has had an increase of 1,001-50,000 people, along with Washington, California, Colorado, Arizona, Texas, New Mexico, Oklahoma, Tennessee, Ohio and South Carolina.
With some good news, the study found the construction of multifamily units is the highest since the late 80s. The number of units under construction is around one million in the U.S. The study explains,
Robust new supply and stabilizing demand have brought rent growth to a near standstill.
They go on to show that rents declined in 32 percent of markets in mid-2023 – not one market reported a decrease in mid-2022 by comparison.
The article shares how this new data correlates with the Oregon Office of Economic Analysis, which found that
…54% of renters in the state do not have enough income left over from rent to cover basic living expenses.
Also, officials found that 40% of Portland renters are in this category.
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