PORTLAND, Ore. (KOIN) — A housing bubble is characterized by a significant spike in house prices that is not related to other economic fundamentals, like labor markets, income or wealth.
But no, Oregon is not in a housing bubble. The COVID-19 pandemic fueled a lifestyle demand for homeownership. Combined with super-low interest rates, prices started to climb and still haven’t stopped.
Research from the Portland Business Alliance shows two adults with two children need a household income of $94,000 to achieve self-sufficiency in Portland. The median household income, though, is $72,633, the second-lowest among peer regions.
The typical value of a home in the United States today is $316,368, a 19.3% increase over the last year. A typical home in Lake Oswego is valued at $859,058.
Plus there is the affordable housing crisis. Experts say the focus should be less on building new buildings for low-income people and re-purposing the empty facilities that are around the city.
KOIN 6 News will continue to follow this story.