Good News, 2018-2022 Oregon Average Weekly Wages Increased by 25%: Bad News:: Portland Metro 1 and 2 BR FMR's Increased by 42%/39%.

This week the Oregon Employment Department published the annual average wage for 2022 and it increased again to $1,269.69. 

I thought it would be useful to see how much an affordable housing expense has increased compared to the increase in HUD Fair Market Rent. 

I selected the Portland 1 and 2 BR FMR for comparison purposes. 

The first two graphs below show these results. 

2018-2022 Observations:

• The 2022 Oregon average wage is NOT sufficient to make a unit at the Portland 2 BR HUD FMR affordable. The average wage worker would spend $188 more than is affordable for that unit in 2022, a BIG increase from the $8  extra they would have spent in 2018.
• The 2022 Oregon average wage WAS sufficient to make a unit at the Portland 1 BR HUD FMR affordable. The average wage worker would have a surplus of $41 of income in 2022, but that is down from a surplus of $183 in 2018.
• Even with a 25% boost in the Oregon average wage the affordability of both Portland 1 and 2 BR units for a Portland worker at the Oregon average wage has declined because Portland HUD FMR;s have increased even faster, by 42% (1 BR) and 39% (2 BR).

Share of Average Wage Required to Remain Affordable Continues to Grow

I added a third graph pasted at the end that shows by year the share of the average weekly wage required to pay the 1 BR or 2 BR HUD Portland metro FMR. 

The share of average wage income required has continued to grow and exceeds 30% of the 2 BR FMF and for 2022 it is (barely) less (29.3%) than 30% for the 1 BR FMR. 

Notes: 

The AWW for counties in the Portland metro are likely different than the statewide AWW, with Multnomah and Washington county wages higher than the statewide AWW, and lower in Clackamas, Columbia, and Yamhill counties . I

IF this is accurate, affordability in Multnomah and Washington counties would be better than this data shows and worse in Clackamas, Columbia, and Yamhill counties. 

Variation in FMR's and AWW outside of Portland counties would also create different results. 

HUD FMR data shown for CY is from following FY. So CY 2022 FMR data shown is actually FY 2023 data point, and was effective October 1 2022. Same for prior years. 

Created and originally posted on the Oregon Housing Blog.