Rising Costs Threaten Housing and Child Care Affordability in Oregon
Oregonians are struggling to keep their heads above water financially as a new study from the Common Sense Institute ranks the state as the fifth least affordable in the United States. The research highlights that household costs have surged by $18,300 annually since 2019, far outpacing income growth. While there are numerous factors influencing the current economic climate, one local economist points to three primary causes.
Caption: FULL INTERVIEW: Applied Behavioral Economist and University of Oregon Associate Professor, Michael Kuhn
“The first two are on the cost side, and that’s housing costs and childcare costs. And then the third factor is on the earning side and that’s slower wage growth than the rest of the country,” said Michael Kuhn, an applied behavioral economist and associate professor at the University of Oregon.
Kuhn explains that this situation is partly due to the limited availability of high-paying technical jobs in Oregon compared to middle-income positions. For many residents, this imbalance has created significant financial strain.
Cindy Hunter, a resident of Eugene, shared her experience during these uncertain times, where most of her expenses have increased. She and her husband have had to make difficult adjustments, such as moving in with their son and daughter-in-law because they can’t afford to live independently.
“I wish that my husband and I could just live on our own and didn’t have to depend on others to get by every month. It makes me feel guilty,” Hunter said.
Adding to these challenges is the rising cost of groceries and other essential goods. According to the Tax Foundation, U.S. households experienced an increase in expenses of $1,000 across all goods last year due to President Trump’s tariffs. This increase is expected to rise by $600 this year under new tariffs on imported goods like produce, coffee, beef, seafood, and spices.
Kuhn also pointed out that lower-income families could be disproportionately affected by changes to SNAP benefits through the Big Beautiful Bill, which was part of President Trump’s spending bill.
“Oregon is one of the states that has the largest SNAP participation rate. Recent changes to the program that sort of redefine benefit eligibility, benefit maximums, and institute work requirements could affect affordability for lower-wage earners in the state,” Kuhn explained.
Some residents believe these challenges are to be expected. Lane County resident James Lowery noted, “Housing is expensive, but it’s expensive everywhere, and food is expensive everywhere. So we’re not going through anything the rest of the country is not going through.”
In recent weeks, another expense—gas prices—has also been on the rise. According to AAA, the national average cost of a gallon of gas was $3.97 on Tuesday, while Oregon’s average was $4.87. Lane County ranked toward the middle among the state’s 36 counties.
There has been a 33-cent jump from last week, and nearly a dollar more than the cost a month ago when the state average was $3.91 per gallon. This increase is directly linked to the ongoing conflict in Iran, which has disrupted oil transportation and driven up the cost of crude oil.
Caption: KMTR – Rising housing, child care costs drive affordability struggles in Oregon
“There doesn’t seem to be an end in sight, and I’m very frustrated with people making the decisions to make that happen,” said Makenzie Mizell. “You’ve got a lot of people on the other side chanting, ‘America first,’ and none of this feels very America first. It just feels like on both sides, they need to be adults and solve their problems with words.”
Kuhn observed that some states have taken steps post-pandemic to loosen restrictions around housing construction, aiming to stimulate housing supply. He believes this is the next best step for Oregon to improve affordability.
