That’s less than Seattle, but it still has to be well over six figures.
Portland, Oregon is known for its quirky atmosphere, lush city parks, and delicious Pacific Northwest cuisine. In addition to being a unique and great place to live, Portland is also home to a competitive real estate market that has seen a lot of change in recent years.
For many people, buy a house in portland A dream has come true, but it’s also important to know how it will affect your finances.From down payments to monthly mortgage payments, there’s a lot to understand before buying your first home
Whether you already live in the City of Roses or are considering moving to the area, here’s a breakdown of the income you need to buy your first home in Portland.
check out our original report Detailed nationwide analysis is possible.
How much income do I need to buy a starter home in Portland?
The median sales price for starter homes in Portland is $401,840. To afford this, first-time homebuyers in Portland would need to earn $130,715 a year, an increase of 6.0% from 2023.. However, the median income in Portland is $101,552. typical resident Can not I can afford a starter home.
As expected, starter homes in Portland are more affordable than the average home (all price ranges combined; see methodology for details). To be able to afford a median-priced home in the area, Must earn $149,023 (As of October 2023).
Nationally, you need an income of $75,849 to buy a typical starter home, which costs an average of $240,000. The average household income in the United States is estimated at $84,072.
Portland Housing Market Guide for First-Time Home Buyers
Portland has experienced a mixed market over the past few years. While home prices have only increased by 1.3% since January 2021, the metro has seen sharp rises and falls during and after the pandemic.
The pandemic-induced residential migration boom affected Portland, like many other coastal cities. More people were leaving than staying.what buyers are looking for solar and affordable. In fact, Portland lost 3.3% of its population from 2020 to 2023. 10 years of sustainable growth. Due to this change and higher mortgage rates, home prices fell 21% from a high of $580,000 to $456,000 from May 2022 to January 2023. Another price spike and fall soon followed, before leveling off in early 2024.
Importantly, Oregon has a national Highest rate of chronic homelessness.The problem is especially Tough in PortlandThe number of unhoused people increased by 65% from 2015 to 2023.
However, there’s a lot to like about the Rose City. If you’re considering moving to Portland, the city is home to many famous and eclectic amenities and attractions throughout its diverse neighborhoods. Forest Park, Powell’s Books, and Hoyt Arboretum are among the best known, offering natural beauty and entertainment for people of all ages. Portland also offers 600 miles of bike trails and breathtaking scenery, with the coast and Columbia River Gorge within hours.
Several Popular areas in Portland include pearl district, hawthornand backman.
What is the typical down payment for a starter home in Portland?
Here are some common down payment amounts for a typical $401,840 starter home in Portland.
Down payment percentage | down payment amount |
Down payment 3% | $12,055 |
Down payment 3.5% | $14,064 |
Down payment 5% | $20,092 |
Down payment 10% | $40,184 |
15% down payment | $60,276 |
20% down payment | $80,368 |
Down payments can range from 0% to 100% of the total home price, depending on your budget, loan type, and long-term priorities. Experts have traditionally recommended budgeting for a 20% down payment, but as home prices continue to rise and wage growth remains sluggish, 15% down payment It’s becoming more common.
Depending on the type of loan, you may be able to set a lower down payment. for example, Federal Housing Administration (FHA) The loan requires a down payment of just 3.5%, but the down payment is minimal. conventional loan is 3%. These amounts typically depend on your credit score, so buyers with higher credit scores may be able to make a smaller down payment.
What are the typical mortgage payments for a starter home in Portland?
The typical monthly mortgage payment for a starter home in Portland is $3,268. This assumes a 3.5% down payment and an interest rate of around 7%.
If you think this payment is too high, consider the following: rent an apartment in portland. With an average rental price of $1,802, it may be a better option if you’re saving for a down payment on a home.You can also use affordable price calculator Find out how much you can afford based on your income and down payment.
What should I do next?
If you’re considering your first home in Portland, it’s important to understand: how much house can you buy. Consider your annual income, credit score, current mortgage rates, and local market trends to make the best decision for you.
From there, portland agency We can help you navigate the entire home buying process and provide valuable local expertise. To learn more about how to buy a home, visit Redfin. First time home buyer’s guide.
methodology
Redfin divides all U.S. real estate into five buckets based on Redfin’s estimates of home market value. He has three tiers of the same size and a tier for the bottom 5% and top 5% of the market. Redfin defines a “starter home” as one whose sales price falls between the 5th and 35th percentiles of homes. Redfin estimates layer.
We calculated the annual income required to purchase a starter home, assuming the buyer does not spend more than 30% of their income on home payments. Home payments are calculated assuming the buyer has made her 3.5% down payment, and also take into account the median monthly sales price and average mortgage interest rate.
National income data are adjusted for inflation using the Consumer Price Index. 2024 earnings are estimated based on the U.S. Census Bureau’s (ACS) 2022 median household income projections using 12-month moving average nominal wage growth rates. This rate was compiled from the Current Population Survey and reported by the Federal Reserve Bank of Atlanta.
We assume that your home payment includes mortgage principal, interest, property taxes, homeowner’s insurance, and mortgage insurance (if applicable).
All data is sourced as of February 2024 unless otherwise noted.