Rent vs buy in Oregon
With today's numbers over a 7-year window, all 12 of the 12 cities of 50,000+ favor renting over buying.
Renting or buying in Oregon's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Portland | Rent | renting wins by $82k | year 24 | $524,318 | $1,719 |
| Hillsboro | Rent | renting wins by $44k | year 13 | $509,612 | $1,969 |
| Beaverton | Rent | renting wins by $65k | year 18 | $520,242 | $1,871 |
| Corvallis | Rent | renting wins by $93k | none in 30 years | $556,438 | $1,775 |
| Tigard | Rent | renting wins by $102k | none in 30 years | $598,717 | $1,798 |
Sources: Zillow Home Value and Observed Rent indexes. The verdicts come from our rent vs buy method with 20% down, over 7 years.
A take on Oregon
Over 7 years, renting beats buying in every one of Oregon's 12 big cities, all 12. Statewide, a typical home runs $493k, and median rent is $1,525 a month, compared with $1,413 nationally. That gap means buying takes a long time to pay off. A typical home in Portland runs $524,318, with rent at $1,719. Renting for 7 years puts $82k in your pocket, and the year 24 mark is when buying finally breaks even. Tigard shows renting ahead by $102k, with rent of $1,798 on a $598,717 home, and buying stays behind for all 30 years.
The payoff comes sooner where home prices are lower or rents are higher. Medford comes closest to a tie, with a home priced at $404,082 and rent of $1,728. Over 7 years, renting puts $19k in your favor, while ownership breaks even in year 10. In Hillsboro, the home price is $509,612 and rent is $1,969. There, renting leads by $44k before buying pays off in year 13.
After you buy, state bills won't strain your budget. The property tax rate is 0.81%, under the 0.94% US rate, while homeowners insurance runs $974 a year compared with $1,308 nationally. Long term, home prices run up 4.9% a year, and we also see 6.8% a year over 10 years. Staying put pays off with that growth, and 37% of households here rent, compared with 35% nationally.
Our take: rent in Oregon unless you'll stay beyond year 10 in a cheaper city. If your stay is shorter, rent and invest what you save.