What’s the cost of living in Oregon?
Wondering about the cost of living in Oregon? This article summarizes everything you need to know, from tax rates to healthcare costs.
When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. If Oregon is at the top of your list, here are some current statistics related to the cost of living in the state that could help you make up your mind.
The average cost of living in Oregon
Over 4 million people call Oregon home. The state boasts one of the highest cost of living in the country.
According to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the state ranks 44th in a list of states with the lowest to the highest cost of living.
While to the Bureau of Economic Analysis 2021 Personal Consumption Expenditures, data shows that Oregon's average cost of living is $47,779 per year.
Housing costs in Oregon
As of March 2023, the average home value in Oregon is estimated to be around $485,475, according to the Zillow Home Value Index as of March 2023.
It’s important to note that housing prices can significantly differ across various regions within the state. Here are some examples of typical home prices based on Zillow's data:
| City | Average Home Value |
|---|---|
| Portland | $543,308 |
| Eugene | $469,043 |
| Salem | $420,092 |
| Gresham | $460,993 |
| Hillsboro | $536,252 |
The average price of rental apartments nationwide is $1,702. In Oregon, two-bedroom homes are rising over last year, with an average monthly rent of $1,902.
Utility costs in Oregon
Utility costs play a significant role in Oregon's overall cost of living. According to Forbes, the average monthly cost is around $407.
| Utility | Average cost in Oregon |
|---|---|
| Energy bill | $106.49 |
| Monthly water bill | $76 |
| Internet | $30 |
| Natural gas | $32 |
| Phone bill | $114 |
| Streaming | $49 |
Grocery and food costs in Oregon
When it comes to groceries and food costs, Oregon generally aligns with prices found elsewhere in the United States.
According to Zippia, those in Portland pay $375 on average each month.
According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.
Transportation costs in Oregon
Transportation costs, including gas prices and vehicle maintenance, impact Oregon's overall cost of living.
According to MIT, a single adult with no children can expect to pay upwards of $5,300.
Gas prices in Oregon are typically in and around the national average. Oregon was over $1 lower than the national average at the time of writing. These prices fluctuate over time.
It is also worth noting that prices can vary across different regions within the state.
Healthcare costs in Oregon
Understanding healthcare expenses is crucial when considering the cost of living.
The specific healthcare costs in Oregon can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates.
MIT estimates:
| Scenario | Annual healthcare expenditure |
|---|---|
| One adult, no children | $2,401 |
| One adult, one child | $8,727 |
| One adult, two children | $8,737 |
| Two adults (one working), no children | $6,042 |
| Two adults (one working), one child | $8,737 |
| Two adults (one working), two children | $8,662 |
| Two adults (two working), no children | $6,042 |
| Two adults (two working), one child | $8,737 |
| Two adults (two working), two children | $8,662 |
Childcare costs in Oregon
Families in Oregon currently pay around $8,452 per year for childcare for one child. This figure doubles for two children.
However, it's important to note that this figure can vary across the state.
Taxation in Oregon
Oregon’s state income tax rates range between 5% and 9.9%.
Here's a comparison of income tax rates among some neighboring states:
| State | Income Tax Rates |
|---|---|
| Oregon | 5% to 9.9% (based on income brackets) |
| Washington | No state income tax |
| California | 1% to 13.3% (based on income brackets) |
| Idaho | 1.125% to 6.925% (based on income brackets) |
| Nevada | No state income tax |
The sales tax in Oregon is a bit unique as the state does not have a general statewide sales tax. Instead, it relies on income and property taxes to generate revenue. As a result, Oregon is often referred to as a "sales tax-free" state. However, there are a few exceptions to this rule. Certain local jurisdictions within Oregon may impose a local sales tax, known as a "transient lodging tax," which applies to accommodations such as hotels and motels. Apart from these specific taxes, most retail goods and services in Oregon are not subject to a sales tax.
The bottom line
The amount of money needed to live comfortably in Oregon can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think.
It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in Oregon. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning.
Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.