Living in Portland, Oregon

Cost Analysis

Housing

The cornerstone of the cost of living in Portland, Oregon is housing. The real estate market here has seen significant fluctuations over the years, influenced by demand, economic trends, and the city's ongoing development. There's always one thing that holds true: overall, prices continue to trend up. As one of the last "affordable" larger cities on the West Coast, Portland appeals to people coming from Los Angeles and San Francisco who simply cannot not afford to buy a home in their hometowns. In recent years, Portland's housing costs have been higher than the national average. 

Utilities

The cost of a home isn't the only thing to consider when living in Portland, Oregon. Utilities in Portland can vary seasonally, especially heating costs during the cooler, rainier months. The average temperature in the winter time floats between the mid 30s and mid 50s, but we do experience some extraordinary weather events that can drop temperatures into the teens. Temperatures in warmer months vary from high 80s on the warm side and low 60s on the cooler evenings. That said, recent years have brought some incredible heat to the city, like in June 2021 when temperatures settled between 105 and 116 for a solid week! On average, residents can expect their utility bills (including electricity, heating, cooling, water, gas, and garbage) to be slightly above the national average. However, this can differ based on the efficiency of the home, the use of renewable energy sources, and water conservation practices. Fun fact: most homes in Portland do no have AC!

Transportation

Transportation costs in Portland depend largely on one's lifestyle and location. The city is known for its excellent public transportation system, including buses, light rail, and streetcars, which can be a cost-effective alternative to owning a car. For those living further from the city center or who prefer driving, costs will include car payments, insurance, fuel, maintenance and sometimes parking fees. The cost of gas in Portland is generally lower than other larger West Coast cities, with a current average for regular gas being $3.75/gallon. PLUS, when you buy a car in Oregon, you don't pay sales tax! 

Food and Groceries

The cost of food and groceries in Portland is slightly above the national average, reflecting the city's focus on organic, locally-sourced, and artisanal products. There  are plenty of options ranging from your typical big box grocery stores to stores with a hand curated selection of high-end grocery items. Or you can opt to shop hyper-local at one of Portland's year around farmers markets. 

Practical Tips for Budgeting

Understanding Your Finances

Before diving into the Portland housing market, it's crucial to have a clear understanding of what it costs to be you on a monthly basis. There are handy apps like Mint that can help you categorize your monthly spending to see where you can trim the budget. You should also stay on top of your credit score, understand your debt-to-income ratio, and have a solid grasp on your incoming and outgoing funds. Chat with Evan to get the low-down on home financing options, where you stand currently, and what steps you may take to better prepare yourself for a home purchase. 

Prioritizing Needs and Wants

When we meet to talk about your home search, we will discuss your wants and needs. Needs are things that are required for living comfortably, like number of bedrooms, number of bathrooms, square feet, and location. Wants are the fun frills you'd like to have, like a soaking tub, hardwood flooring, an updated kitchen, or a fireplace. Approaching your home search from a practical viewpoint will help you make compromises, if necessary, without sacrificing essential aspects.

Saving for a Down Payment

Start saving for a down payment as early as possible! One great way to save is to open a high interest earning savings account and automatically transfer a set dollar amount into the account from each of your paychecks. REMINDER: YOU DO NOT NEED 20% DOWN TO BUY A HOUSE. Many first time homebuyers will put as little as 3% down. Of course, the larger your down payment, the lower your monthly mortgage payments will be, but the biggest influence on monthly payment is interest rate. Chat with Evan for current interest rates and options for lowering your monthly payment through temporary or permanent interest rate buy-downs.