Manning & Lake Oswego Top the List of Highest-Earning Zip Codes in the Portland, Oregon Metro Area

Originally published on Stacker

The 2020 median household income in the U.S. was $67,521, a decrease of 2.9% from the 2019 median of $69,560, according to the U.S. Census's annual analysis of income and poverty in the U.S. COVID-19 in 2020 drastically altered income and poverty levels, along with consumer habits and job opportunities — the fallout of which continues today.

Stacker compiled a list of the highest-earning zip codes in Portland-Vancouver-Hillsboro, WA using data from the U.S. Census Bureau. Zip codes were mapped to city using Simple Maps. Counties are ranked by 2019 five-year estimate median household income.

Education levels and occupation contribute mightily to salaries, but where a worker lives can give a boost to employees across the board — or result in diminished earnings. It's not just a location's tax rates and cost of living, either. According to a Brookings study, simple geography is responsible for a large variation in earnings: Sebring, Florida, for example, has the low median earning of just $26,000, while the metro area of San Jose-Sunnyvale-Santa Clara in California boasts a median earning figure of $65,000. The same study found that overall workers in the top-earning 30 locations across the U.S. earn an average of 37% more than the workers in the bottom 30 locations.

Silicon Valley boasts a workforce that Sebring, Florida, simply can't. In addition to powerhouse hubs like Silicon Valley, cities in general also boast higher wages for workers than their counterparts living outside of cities. High-paying firms are often located in cities, drawing talent who earn top dollar.

In the Portland metro area: 

#10. 98606 (Brush Prairie)
- Median household income: $103,295
- Households earning over $100,000: 52.1%%

#9. 97106 (Banks)
- Median household income: $103,958
- Households earning over $100,000: 53.8%%

#8. 97212 (Portland)
- Median household income: $106,705
- Households earning over $100,000: 53.7%%

#7. 97140 (Sherwood)
- Median household income: $106,855
- Households earning over $100,000: 53.5%%

#6. 98607 (Camas)
- Median household income: $108,321
- Households earning over $100,000: 53.9%%

#5. 97068 (West Linn)
- Median household income: $113,389
- Households earning over $100,000: 55.1%%

#4. 97221 (Portland)
- Median household income: $122,096
- Households earning over $100,000: 56.9%%

#3. 97229 (Portland)
- Median household income: $122,881
- Households earning over $100,000: 58.7%%

#2. 97034 (Lake Oswego)
- Median household income: $128,048
- Households earning over $100,000: 59.2%%

#1. 97125 (Manning)
- Median household income: $165,909
- Households earning over $100,000: 80.8%%

Rents Fell in Cities Post-Pandemic, but In the Burbs, Not so Much

ApartmentList has a new interactive chart available demonstrating rent trends for metro areas throughout the United States. While rents soared in early 2021, rents dropped by January of 2022 and increased again in September 2022. 

Since November of 2022, rates have generally flattened, with current rent growth for Portland and Seattle reported as follows:

City        Rent Growth, City Core        Suburb Growth                Gap

Portland             1.7%                                22.8%                            21.1%

Seattle                2.0%                                19%                               17%

View all charts and search metro areas throughout the U.S. here. 

RentCafe: America’s Apartment Boom: 1 Million Units Built in 3 Years, Another Million to Be Added By 2025

RentCafe reports that apartment construction is having some of its biggest boom years ever. The construction cycle is expected to slow significantly after 2025 due to construction loan rates, currently averaging 8%. 

Read more. 

Washington Multifamily Housing Association Endorses Candidate for Governor

The Washington Multifamily Housing Association Board of Directors has endorsed Senator Mark Mullet (D-Issaquah) for the next governor of the State of Washington. The association plans to actively support his campaign through public outreach, member engagement, and industry education efforts. 

In a prepared statement, the association provided the following reasons for its endorsement:

The Hidden Truth of Oregon's HB 3042: How It Redefines Oregon’s Subsidized Housing Market

One bill that passed the last legislative session in Oregon that has not received wide media attention is HB 3042.

About HB 3042: According to attorney John A. DiLorenzo, Jr., under the previous system: those with a tax credit deal would sign a rent regulatory agreement with the state, lasting for an initial 15-year period. After this period, rents could be raised to market levels. However, Bill 3042 added another three years on top of the initial agreement. During these additional three years, rent increases are permitted only with the approval from Oregon Housing and Community Services (OHCS), and are generally limited to 5%.

Legal Concerns: DiLorenzo voiced concerns about the bill’s legality, specifically regarding contracts' obligations. He cited previous eviction moratorium cases in Oregon, where a judge had ruled that obligations of contracts could be impaired during emergencies like the pandemic. However, HB 3042 does not have such an emergency justification. DiLorenzo indicated that organizations like More Housing Now are considering legal action.

State Perspective: The State of Oregon aims to control rents in buildings after they exit the tax credit programs. The state was aware of their own timelines, and were unprepared, and instead, passed this bill in order to retain control.

Effects of the Bill: DiLorenzo says that the bill might further deter new investment in housing in Oregon due to the risk of further "surprise" legislation down the road. The state's approach, he argues, will end up raising rents as supply remains stagnant and demand increases. DiLorenzo also indicated other legislation which has been a burden to landlords and requires them to participate in rental assistance programs. Non-compliance can lead to dismissals in evictions, making the eviction process more complex and costly for landlords.

Comparison with Other States: When asked about other states' positions, DiLorenzo stated that Oregon was the first to enact this type of legislation and emphasized the importance of ensuring that the state never enacts vacancy control, which would be an additional detriment to housing investment here.

Conclusion: Multifamily owners are feeling an urgency to address HB 3042, as it unilaterally extends their rent regulatory agreements. Owners must work to keep informed and stay proactive in local and state government to prevent further erosion of their rights and challenges to maintaining property investments.

Senate Bill 35: California’s Secret Weapon Against the Housing Crisis?

California's Senate Bill 35 has sparked significant growth in affordable housing construction by reducing local opposition. With 156 projects approved or under review, resulting in 18,000 new units – 62% of which are reserved for those earning below 80% of the median income – it's proven effective. The Terner Center's recent study highlights its success, though there's still much work ahead. [Read the full story here on Business Insider.]

Lawsuit Ahead? Oregon House Does The Two-Step on Low-Income Housing Tax Credit

In this HFO TV episode, partner Greg Frick and attorney John A. DiLorenzo, Jr. of Davis Wright Tremaine discuss lesser-known HB 3042, its implications for Low-Income Housing Tax Credit (LITEC) subsidized units, and the likely legal challenges. They delve into the extended use period, rent increases, and the need for rental increase permission from Oregon Housing and Community Services (OHCS). The conversation also touches on rent control, housing supply, and changes in eviction Forcible Entry and Detainer (FED) laws. DiLorenzo argues that all the new regulations on rent control, inclusionary zoning, and evictions will only reduce the housing supply.

Revealing Today’s Renter: Key Insights from Apartments.com's Latest Study

Nearly 60% of U.S. renters plan to move when their lease is up. 

At the recent NAA Apartmentalize conference, Chris Hood from Apartments.com delved deep into the mindset of today's renters. Data from a survey of 37,000 renters and visits to the Apartments.com website revealed a changing landscape, with factors like affordability, lifestyle changes, and safety playing pivotal roles in their decisions to move. Conversely, inflation keeps many from making the move. The search process is faster, with most renters making informed and decisive choices. How should apartment communities adapt? By understanding and addressing these evolving preferences in their marketing strategies. Click here to read more. 

Meanwhile, RealPage conducted its own recent survey of 2,000 renters from across the nation representing various demographics. Their survey unveiled at the RealWorld 2023 conference found 66% of renters content with their current housing and enjoying financial freedom and flexibility. Their survey found that Gen Z particularly feels renting trumps buying, with 51% leaning toward rentals. Technology and safety are paramount, with Gen Z willing to shell out more for smart technology. Furthermore, community integration, quality of life, and financial freedom emerge as new priorities in the rental world. The RealPage annual conference has over 1,400 attendees with a combined 5 million rental property units under management or ownership.  

Kotek Announces New Task Force to Revitalize Portland's Economic Future

Oregon Governor, Tina Kotek, in collaboration with the Oregon Business Council, introduced the Portland Central City Task Force this Wednesday. This move comes in a bid to rejuvenate Portland’s economic prospects, assembling local elected officials, business magnates, and community figureheads to address the pressing economic issues of Portland’s Central City. In recent years, downtown Portland has grappled with numerous challenges, many stemming from growing pains that intensified during the global pandemic. Such concerns, affecting Oregon’s premier city, have escalated to state-level economic matters. Gov. Kotek emphasized the need for united, equitable strategies, thanking all individuals devoted to Portland's bright future.

Initiated following a strong public appeal, the task force’s objective is clear: to navigate the city’s challenges. Co-Chair Dan McMillan — the president and CEO of The Standard — acknowledged the gradual positive shift in Portland, with rising foot traffic and diminishing property crimes. He expressed gratitude to Gov. Kotek for her proactive stance, championing cooperative efforts to secure the city's future prosperity. The task force’s inaugural meeting is slated for August 12, with another in October. They will present their recommendations at the Oregon Business Plan Leadership Summit come December.

Read more at KOIN.com.

The Battle Over Tenant Screening Fees in Eugene, Oregon

 

In this episode with attorney John A. DiLorenzo, Jr., partner Greg Frick discusses the controversial screening law in Eugene. Learn why limiting screening fees to $10 sparked a legal battle and how it affects landlords and prospective tenants. Discover the court ruling that deemed the local ordinance preempted by state statute, and find out why the City of Eugene is appealing that decision. 

Transcript:  (Edited for clarity)

Greg: Now to the City of Eugene the screening law, when they tried to pass the law about the criteria on screening and the cost.

John: This is typical of a circumstance when people who are making decisions about housing have never managed housing and have never owned housing. Okay. So, the city council in Eugene comes up with this idea that they should limit screening fees to $10, because paying $40 for a screening is just way too expensive for some. Well, the problem is you can't find a company to screen for under $40, and it was even worse because, you know, at 40 bucks or 50 bucks for a screening, prospective tenants are somewhat circumspect as to where they apply, right? So, they actually read the criteria first before they spend the 50 bucks. If it's only 10 bucks, it's like a shotgun. And so, you end up having a landlord have to be $40 a piece in the hole every single time for people who have no intention of living there or who will never be able to qualify. So, who ends up paying for that?

Greg: The property owner.

John: The existing tenants and the property owner. Yeah, I mean, so, we believed that that offended a statute, an Oregon statute that allows landlords to recover their average costs. And so, we filed suit in circuit court in Eugene and Judge Fennerty ruled that the local ordinance was preempted by the state statute. And so, that brought an end to the Eugene screening ordinance, but undaunted, Eugene asked its legislators to introduce a bill in the legislature that was going to abolish that preemption statute. So, we had to fight that. We are able to kill that in committee. So, instead, they've now appealed their loss to the court of appeals, so we'll see what happens.

Greg: So, they're not going the legislative way, they're gonna try to appeal the...

John: Yeah, they're gonna try to appeal that at the court of appeals.

Greg: And what's your thought on that?

John: Well, I think they're gonna lose. And I mean, I think it's pretty clear that the state statute preempts that sort of thing.

Greg: And the reasoning behind, I mean, what was their argument for this? Just that the rental housing providers are making a load of money on running credit checks?

John: Well, yeah and they believed some tenant advocates who came in who said, "Oh, we could do screening for $10." Well, I don't know who "we" are. You know, any reputable screening company is gonna charge 40$ or 50$. And we did a survey, we did a survey around the state, and that's what it costs.

Greg: So now we've gotta wait and see when this appeals and how that happens.

John: Yeah.

Greg: Are there any other cities talking about this? 

John: Well, there were going to be until we beat them in court, so that's one of the reasons why it's so important to either try to maintain a presence in the legislature and in the courts at the same time, because sometimes you can get in the legislature what you can't get in the courts, and sometimes you can get in the courts what you can't get in the legislature.

Census Reports: Portland & Seattle Rental Vacancy Rates Remain Below U.S. Average

Seattle's vacancy rate increased from 3.3 to 3.8% in Q2, ranking #15 lowest in the country, while  and Portland's vacancy rate declined slightly from 5.6% to 5.4%, a ranking of 24th lowest. Both have vacancy rates below the national average of 6.3%

Of the top 75 metro areas, Portland-Vancouver-Hillsboro's vacancy rate of 5.4%, was up from 3.3% year-over year. Seattle-Tacoma-Bellevue's vacancy rate of 3.8% was up slightly from 3.4% a year earlier.

U.S. Rental Vacancies Increase
The average national rental vacancy rate for Q2 2023 was 6.3 percent for multifamily dwellings of five or more units, up from 5.6% a year earlier. 

Click to enlarge

Year-over-year vacancy rates in the Western U.S. increased from 4.3% in Q2 2022 to 5.0% in Q2 2023.

Click to enlarge

U.S. Homeownership Rates
After falling to a 26-year low in 2016, the national homeownership rate now stands at 65.9%, unchanged from Q1 2023. Homeownership in the West has increased in the past year from 60.2% to 61.9%.