5 Powerful Reasons to Buy a Home in Oregon Now

August 14, 2020
Last updated:
November 30, 2023
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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!

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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, which is needed to build new homes. It would 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.

According to residential real estate data provider Zillow, the average rental price in Oregon is around $1,788.00.

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 $346,653, 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 2024 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 2024 conforming loan limit for a single-family residence in Oregon at $766,550.

FHA loan limits have risen as well. For instance, Portland’s 2024 FHA loan limit is $679,650.

5. Favorable Market Conditions

Last but not least, there are several favorable market indicators that suggest now is the time to buy in Oregon. The average value in Portland has been stagnant over the last 12 months, which means you can get in before price increases begin again and build equity. In the state of Oregon as a whole, home prices dipped 0.9% 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.



In the end, the answer is simple. If you can afford to purchase, it’s 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.

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Need a Mortgage?

Do you have any questions about purchasing a home in Oregon? Let the professionals at Sammamish Mortgage guide you. We offer a wide variety of mortgage programs and tools with flexible qualification criteria, including our Diamond Homebuyer ProgramCash Buyer Program, and Bridge Loans. We have been serving the entire state since 1992, as well as the broader Pacific Northwest region that includes Washington, Oregon, Colorado, and Idaho. Please contact us today with any financing-related questions you have.

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