Back to Blog

5 Powerful Reasons to Buy a Home in Oregon Now

Sammamish Mortgage
August 14, 2020
Last updated:
July 8, 2021
Powerful Reasons to Buy a Home in OR Now
In This Article

Portland, Salem, Bend, Eugene, and Gresham. If you are looking for powerful reasons to buy a home in Oregon now, you need to look no further than the picture-perfect quality of any of these beautiful cities.

Oregon’s amazing coastline, unrivaled mountain scenery, amazing food and wine, and growing economy are just a few reasons why you should consider a home purchase in Oregon now. There are lots of powerful reasons to buy a home in Oregon now.

Let’s take a closer look at just 5

  1. Oregon’s Population Is Growing
  2. Generate Equity And Build Your Net Worth
  3. Tax Incentives
  4. Increased Loan Limits
  5. Favorable Market Conditions
  6. Oregon’s Population is Growing… A Lot!

Live Oregon Mortgage Rates Aug, 03, Tue, 2021

1. Oregon’s Population Is Growing

Everywhere you turn in the State of Oregon the population is growing, and not because families are having more children. Statistics show that the biggest contributing factor to Oregon’s population growth is due to new incoming residents. With so many opportunities, the Beaver State holds a big appeal for outsiders. What does that mean to you?

Well, maybe you are one of those considering a move to Oregon, and maybe you have lived here your whole life. Either way, a growing population in Oregon means more demand for housing.

The population of Portland alone is expected to increase over 40 percent in the next 20 years which will add around 250,000 + new residents. Sources expect the population of Portland’s surrounding metro counties to rise to 3.5 mil residents by 2060. In the last 10 years, this region has witnessed healthy economic growth adding more higher-paying jobs than almost any other metro area in the US. With so much economic incentive, more and more of Oregon’s residents have the financial means and the desire to purchase a home.

Seeing a growing demand for homes means that Portland will continue to face a shortage of single-family homes, and lots of new homes will be needed to meet the need. That means the prices of existing homes will probably continue to rise unless lots of new homes magically come on the market.

Portland also faces a shortage of buildable land. Land that is needed to build new homes. And Portland hasn’t increased its Metro Urban Growth Boundaries, a decision that won’t come up for review again until 2021. This means that even if they decided to increase the boundaries, it would still take years to make up for the housing shortfall. Of course, Portland is just one city in Oregon and there are options available for all buyers.

2. Start Generating Equity In Oregon And Build Your Net Worth.

According to the Oregon Office Of Economic, Analysis, not only is equity the number one source of wealth for most Oregon families, but that applies to the nation as a whole. There is no time like the present to start building equity and increasing your net worth.

The Federal Reserve tells us that the average homeowner has a net worth of 230k while the average renter only has a net worth of about 5k. Why is there such a disparity? The long term financial benefits of homeownership far exceed that of a renter.

Portland experienced a drop in rental prices in early 2019 but has since seen a 2.5 percent increase in average monthly rental pricing over the last year. According to residential real estate data provider Zillow, the average rental price in Oregon is around $1,850.00.

The average home price in Oregon is $372,800 which translates roughly into $1,880.00 per month for a 30-year fixed mortgage depending on your down payment. With numbers like these, it’s not hard to see why homeownership has an appeal.

What Does This Mean To You?

Most homebuyers secure a 30-year fixed rate mortgage when making a home purchase. Once that fixed term has ended, there’s no more mortgage payment where a renter would continue to pay. This means any increase in value over that time period translates into equity.

Here’s an example: According to the US Census report, in November of 1989, the price of an average home was around $150,000.  This year Zillow tells us the average home price in the US sits right around $248,800 representing a big increase in equity value. Add to that, the fact that the homeowner is no longer paying monthly mortgage payments or rent.

3. Don’t Forget the Tax Incentives.

One thing to remember when considering a home purchase is the Tax Incentives. Some of the most powerful lobbyists in Washington DC represent major players in the residential real estate marketplace. The NAR (National Association of Realtors), The National Association of Home Builders and The Mortgage Bankers Association just to name a few.

All of these organizations spend a lot of money each year pursuing common homeowner interests, not true for renters. This means legislation (mostly tax laws)  is regularly introduced that benefits the homeowner. Here are some examples:

Mortgage Interest Deduction

Currently, homeowners can deduct the interest paid on up to $750,000 of qualified personal residence debt on a first and/or second home. This applies to tax years 2019-2025.

State And Local Real Estate Tax Deduction

According to the Tax Policy Center: Taxpayers who itemize deductions on their federal income tax returns can deduct state and local real estate and personal property taxes, as well as either income taxes or general sales taxes. The Tax Cut and Jobs Act limits total state and local tax deduction to $10,000.

Capital Gains Tax Reduction

Capital Gains taxes are levied against the profit you make on the sale of a “non-inventory” asset like real estate, stocks, precious metals, or a special collection. However, special rules apply that protect homeowners when selling their primary residence. Specifically, Individual profit from the sale of your home up to $250,000 or $500,000 if you are a couple filing jointly is tax-free.

4. Loan Limits for 2021 Have Increased

Portland is just one of the few cities that saw higher conforming loan limits. In fact, in response to the nationwide rise in property values, the FHFA has set the 2021 conforming loan limit for a single-family residence in Oregon at $548,250.

FHA loan limits have risen as well. For instance, Portland’s 2021 FHA loan limit is now $517,500. But mortgage interest rates have been on a steady decline, making mortgages more affordable today. That’s just one more powerful reason to buy a home in Oregon now.

5. Favorable Market Conditions

Last but not least, there are several favorable market indicators that suggest now is the time to buy in Oregon. While the average value in Portland may have seen a relative cooling of the market, the state of Oregon as a whole maintains robust growth with a 3.5 percent increase in values over the last year.

When we take a closer look at the Portland market we see that the downturns in value don’t apply across the board. In fact, homes purchased in Portland below $400,000 are still expected to appreciate in value over the next year.  Also, a cooling-off period can mean good things for buyers. With less competition, it’s a little easier to negotiate a better deal. The key takeaway here is to target what you can afford.


In the end, the answer is simple. If you can afford to purchase, its a great time. If you are looking for powerful reasons to buy a home in Oregon, look no further. There are plenty of reasons why it makes good financial sense to purchase a home. The long term benefits of homeownership far outweigh those of renting.

Too many consumers think of purchasing their primary residence as a quick money-making investment. Beware, while there is money to be made in real estate investing, typically you will see the big financial benefits of homeownership over a longer period of time. Now is the perfect time to purchase a home, take advantage of tax incentives, and start building equity.

Live Oregon Mortgage Rates Aug, 03, Tue, 2021

Need a Mortgage?

Do you have any questions about purchasing a home in Oregon? Let the professionals at Sammamish Mortgage guide you. Family owned and operated since 1992, we know what you value. Let us help you understand the ins and outs of home financing and more. Sammamish Mortgage offers a variety of mortgage programs including FHA and VA mortgages. Regardless of your situation, we can guide you through the process. If you have questions about securing a mortgage in Oregon, Washington, Idaho, or Colorado, please contact our friendly staff. We look forward to serving you.

Get an Instant Mortgage Rate Quote Today

Other Blogs You May Like
Average Down Payment on a House in Colorado in 2021 Average Down Payment on a House in Colorado in 2021
July 30, 2021

If you’re thinking of buying a home in Colorado but aren’t sure about how much to put down, this blog post will help you make that decision.

Read more
Tips For Home Buying In Another State Tips For Home Buying In Another State
July 27, 2021

There are several tips and suggestions that can help make buying a home in another state a breeze.

Read more

Show 172 more posts
from this category

Begin your home loan process today! Our mortgage advisors are standing by. Request a free personalized rate quote. (425) 401-8787