Pandemic's Effect on Income Migration: Multnomah County's Billion-Dollar Loss

Multnomah County experienced a significant migration of residents during the first year of the pandemic, leading to a net loss of over $1 billion in income, The Oregonian reports. This phenomenon was largely attributed to the rise in remote work, which allowed individuals to retain their urban jobs while relocating elsewhere. IRS data from 2020 and 2021 revealed that 14,257 tax filers and their dependents moved out of the county, marking the first time in a decade that the county's net income loss exceeded $1 billion. Furthermore, the average income of residents who left in 2020 was 14% higher than those who moved out the previous year, reflecting a trend of higher earners relocating. This change was a departure from previous patterns, where typically those who relocated had lower incomes than those who stayed.

While the county lost residents primarily to nearby suburbs such as Clackamas County, some moved to more distant destinations. Economists predict that these trends could result in a significant loss of tax revenue for the county and the state of Oregon, which heavily relies on personal income taxes from high earners. There is concern that if this trend continues, it could lead to budget shortfalls and cuts in local programs and services. The average household income of residents leaving Multnomah County has increased over the past decade, though it's unclear if this is primarily due to the departure of the highest earners. Depending on income levels, migrants from Multnomah County generally moved either to out-of-county areas with more space or to more affordable counties within Oregon. 

Read more at OregonLive.com.