Report: Portland home prices increased 5 times faster than incomes
Home price increases finally cooled off in the Portland area in 2018, falling below the national average for the first time since 2012.
But the slowdown followed eight years where the increases were among the highest in the country — and more than five times the increase in area household incomes, which helps explain the current affordable housing crisis.
Home prices in the Portland region increased 3.9 percent last year, below the national increase of 4.7 percent, according to the newest S&P CoreLogic Case-Schiller house price index. That's the lowest regional increase in six years.
But area home prices increased more than five times faster than household incomes between 2009 and 2017, according to a new report by LendingTree. it said Portland had the 9th highest home price increase of the 50 largest metropolitan areas in the country at the end of 2017.
According to the report, median home prices in Portland increased by $88,100 during that period, jumping from $287,900 to $376,000. In contrast, median household incomes in Portland only increased $16,410 between 2009 and 2017.
Leading the LendingTree rankings is San Jose, California, where home prices increased $319,400 and incomes increased $32,991. In last place is Hartford, Connecticut, with home prices dropped $11,800 and incomes rose $5,716.
On average, median home values have increased by nearly $50,000 across the 50 largest metros in the United States since 2009, the report says.
"When the real estate bubble burst in late 2008, many Americans saw their home values fall drastically, but a lot has changed in the 10 years since — housing prices have rebounded from their lows during the Great Recession. And though prices are now starting to cool, in many cases, home values have even exceeded their 2006 highs," reads the report.
LendingTree describes itself as "the nation's leading online loan marketplace."
You can read the complete report here.