Why Is Portland So Expensive

Portland is a large, diverse city with a rich history. With over 1,000 years of history together, you can find almost every era in Portland.

With over 200 days of sunshine annually, Portland has a very long summer. This means there is plenty of time to explore!

Since it has several months and seasons, there is more time to enjoy the outdoors. There are countless parks and trails available, so no matter what season you visit, you can enjoy some spectacular sights.

One way to experience this is by going to a sports stadium.

Population growth

Population growth is a big reason why Portland is so expensive. Places like San Francisco and New York have much less population, but are much more expensive.

In 2014, the United States had a total of six million housing units, making it incredibly difficult to find a affordable housing option. Even within neighborhoods, there is often a huge difference in cost of living.

This large number of options makes it very challenging for individuals to choose their place to live. Thankfully, there are still many great options out there, but it will take you some time to search and find what you want.

Income growth

why is portland so expensive

As mentioned earlier, income plays a large part in how expensive a city is. Because of this, cities like Portland that are full of high earners will cost you more than less money cities like San Francisco or New York.

Real estate is also very expensive in the U.S., and big city real estate is even more pricey than the suburbs. So having a higher income can help lower your costs somewhat, but it still takes some serious saving to drop expenses.

Another factor that affects cost is government spending. Wealthy citizens often use their money well, and so the government gets less savings. Even with lower savings, governments are able to print enough money to cover their obligations.

Thusly, wealthy people continue to spend their money in order to keep up with the government-spending spree. Having oversight from an elected official can also save them some money down the line.

Financialization of real estate

why is portland so expensive

As noted earlier, real estate is a leading sector of the economy in Portland. The fact that so many are paying high fees for consumer oriented housing indicates that the market has shifted towards providing consumers with affordable housing.

As consumer oriented housing, it is typically not very well insulated, and can be difficult to find in a competitive market. As real estate, it is typically expensive for low income or lower quality housing.

Financialization occurs when people with lots of money use property as a way to accumulate wealth. By using real estate as a investment vehicle, people can gain access to high net worth individuals and companies without paying extremely high fees.

This occurs outside of just real estate; property is used to build wealth by simply being an investment vehicle. People who use property as investments can gain access to higher level individuals and companies, which can increase their reputation and value over time.

Rent control eliminated

why is portland so expensive

After World War II, new laws were passed that made it impossible for a landlord to charge more money for the same property.

This was a huge step in the right direction and helped lower home values over time. However, it also ended up making it harder for people to purchase a home.

Before rent control was in place, it was normal for a family of four to pay $200-$300 dollars per month in rent. That is a full-size bed, usually two dresses, one pair of shoes and one hat being paid for together.

If you want to buy a small house with two full sized beds, you have to look at $400 per month in rent as an annual salary can be $80 thousand! This can hurt people who are looking to buy their first home.

Transit expansion

why is portland so expensive

Recent news about regional government, economic development, and statistics about Portland suggests that demand for transit expansion and economic growth is growing increasingly important.

This recent news includes a record-setting construction season for the MAX system, new apartment complexes planned for downtowns and neighborhoods, and announcements of major development projects.

These developments include the Link streetcar project along downtowns streets, a proposed Fourth Street Bridges renovation/widening that would bring more development to the area, and the New Seasons Market Urban Reimagined project intended to draw more people to Portland’s urban core.

All of these developments highlight how development has increased in recent years and how important it is for people to have access to it.

High taxes?

why is portland so expensive

Not exactly. More like high costs, high prices, and little accountability. As mentioned earlier, Portland is expensive.

Costs include: Real estate taxes, business taxes, and fees. Real estate taxes are the most prevalent of all taxes due to land ownership.

Business tax is also a major source of revenue for governments as businesses pay something for their existence.

Realty tax is the term used to describe the type of tax that exists on real estate. This type of tax varies from city to city but in general it is higher than local taxation on single-family homes and condos.

Property insurance covers your property when it is damaged in an accident or fire. Business insurance covers your company if something serious happens to you during business hours.

Restaurant boom?

why is portland so expensive

Served or ordered? Parfait? is a topic that every chef, restaurateur, and fan knows to be very important to have in a kitchen. As the term implies, it determines the final product you make.

grilled or cooked? By size or raw? Is it warm or cool? Is it sweet or savory? All of these questions and more affect how a food looks, how it tastes, and how people feel about it.

This is true even at high-end restaurants. A well-made piece of grilled chicken might taste better than a plain grille chicken you find at fast food chains. A cold glass of wine or beer tastes better when it is grilled rather than boiled.

These details make a difference in how people experience and value food, and in what restaurants to go to.

Cost of living increases everywhere

why is portland so expensive

As you can see in the photo, there are a lot of expensive things in the U.S. Even though the cost of living is high everywhere, it’s even more so in some places than others.

The highest cost of living areas are found in New York City, San Francisco, and Honolulu. Although these cities are known for their high cost of living, they aren’t the only places with high cost ofliving.

Another area with a higher cost of living is Washington, D.C., where housing costs are very expensive compared to other areas. D.C. is also known for its expensive housing, making it even more costly than the rest of the city makes it seem at first glance.

Why does housing make such a large difference in how much you spend? Housing makes a big difference because people differ in what kind of location they prefer and where they prefer it.