The Rising Barrier for Entry for Portland Rentals

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In recent years, the cost of living has increased dramatically. For those renting an apartment or home, this means that the rental prices have only increased overtime, and will continue to do so for the foreseeable future. This steady increase in rental prices could mean the difference between having shelter, experiencing housing insecurity, or even experiencing homelessness. The homelessness crisis in Portland, Oregon has become a prevalent topic recently, and the increasing rental prices not only affects the general population, but also disproportionately affects the homeless population by raising the barrier for entry considerably. To understand how these increases in rental prices affect them, we need to visualize just how much impact these rent hikes have, and how they can impact their affordability for the average Portlander.

Portland’s Increasing Rent

Rent costs in Portland are expected to rise within the next year, potentially impacting those with low income and increasing the cost of living. This year, KOIN 6 News reported that buildings in Portland established more than fifteen years ago may see rent hikes by as much as ten percent from a median rate of over $1,800.* To some, 10% doesn’t seem like much; seeing such percentages applied as a discount, for example, would only see marginal savings depending on the product. However, when it comes to rental prices, this can prove troubling. Considering the $1,800 figure provided by KOIN 6 News, 10% of this comes out to $180. This brings the total up to $1,980 – nearly $2,000 a month towards rent. Even with seemingly marginal increases in rent, these jumps can stealthy add up to where rentals become harder to afford, let alone access for those without a home.

How Low Income Renters are Impacted

For those with low income, increases in rent can prove even more troubling. A major problem with rentals is that, even if the units serve those with low income, their monthly costs can exceed what’s reasonable for these renters. According to the Center on Budget and Policy Priorities, “[The Department of Housing and Urban Development] generally considers a unit affordable if rent and utilities do not exceed 30 percent of income” ** To understand how the average $1,800 figure – or the possible $1,980 figure – for Portland, Oregon can impact renters, we must look at the average income for the city. According to the United States Census Bureau, the mean per capita income – or average income per person – in Portland, Oregon from 2018 to 2022 was $52,577.*** Taking this into account, to afford the average rent in Portland, one would need to pay $15,773.10 per year on rent at most. This would make the average rental rate about $1,314.42 per month. Compared to the city’s current average rental rate of $1,800, having the average Portland income means paying more than what’s comfortable. As these rates continue to increase, the bar for entry for those experiencing homelessness will only become more cost prohibitive.

    As rental rates continue to rise in Portland, low income renters find it increasingly difficult to comfortably afford these rates. This can result in housing insecurity, limited access to essential goods, or even homelessness. Should these barriers continue to rise, those without affordable housing will only find it more difficult to maintain their expenses. Even then, those experiencing homelessness may struggle to keep up with the growing rates, barring them from acquiring even the most basic apartment or housing. There are ways to mitigate this problem; for example, The Center on Budget and Policy Priorities recommends increasing the amount of affordable housing or even providing housing vouchers.** Until then, it’s important to consider that the continually rising prices for rentals will only exacerbate the housing crisis, and by extension the homelessness crisis. For more information, click the links down below or in the article.


*https://www.koin.com/news/oregon/oregon-renters-will-see-a-10-max-rent-increase-in-2025/


**https://www.cbpp.org/research/housing/addressing-the-affordable-housing-crisis-requires-expanding-rental-assistance-and


***https://www.census.gov/quickfacts/fact/table/portlandcityoregon/PST040222


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