Housing Hillsboro: Is It Too Late For Home Ownership In Hillsboro?

It is time for the adults in the room to discuss this honestly.

Housing costs in the United States are way past being out of control, and no help is in sight. Politicians say they want change and to create affordable housing, but as long as I have been in the valley, some six decades, that has become a more and more distant dream.  Baby Boomers like me could grab that 1st home in the ’70s and ’80s, hold on to it, ride the equity wave, and at least have a shot to keep a decent roof over our heads.  Maybe my generation was the last to live that part of the mythical American Dream.  I hope not, but there is nothing in the numbers to suggest otherwise.

Thanks to the abundance of jobs created primarily by our once-cheap water, power, land, and tax giveaways, housing is under more pressure in Hillsboro than anywhere.  Those in our leadership advocate for a 300% increase in our industrial land base, and housing will never catch up, let alone keep up.  A recent report by payscale.com found that homes in Hillsboro, Oregon, average 44% more than the National average at a whopping $654,000.   With 20% down ($132,000), that payment would now be about $3,800 a month, requiring a household income of $138,000 a year to qualify.  The US Census reports that the average household income in Hillsboro is $85,886.

We all see this, right? What are we…what are you…going to do about it?

Unless something changes, there is little to no chance most locals will get that $138K set aside and grab that house.  Other than low-income subsidized housing, which we need, I see nothing changing or coming out of City Hall or the State but lip service.  Action has left the valley, and we need it now.  Every tool in the book must be utilized, but they are still in the garage.  No more time for that.

Is It Too Late?  In 2000, the occupants owned approximately 63% of Hillsboro residential units. By 2023, the number had fallen to 51%.  As Hillsboro becomes a rental community, we are losing our stability.  Can we stem the tide?

The Herald ran a detailed story on Jan 12th, 2024 (Hillsboro And Washington County Make List Of Least Affordable Communities In Nation), which shone a light down on just how bad things are – we are among the Top 9 worst places to try to buy a home.  The data showed that 53% of all household income has to be paid out to housing- rent and house payments are so high that it is crippling our citizens.  There is no money left to save for emergencies, let alone the future.

This hurts all of us- this is pushing our kids out of the Hillsboro community we raised them in.  And I can not tell you how many younger people tell me they are leaving for a “brighter future” elsewhere or how many Seniors tell me they are selling because they can no longer afford the taxes here.  This dominates my daily discussions with real estate clients but has not always been that way. It makes it even harder for me because I know much better times when most people owned a home.

Take Our Survey

Now, are my perceptions, despite my citing facts, more speculation and hyperbole? Nope. Today, the group Clever reported that home prices have outpaced inflation significantly. This proves beyond a shadow of a doubt that it really is a lot more expensive to buy a home now than at any time in the past. Look at the findings.

About 73% of Americans say home prices are unattainably high in their area. It’s not just grumbling millennials, either. Majorities of every generation believe home prices are out of reach, according to a recent Clever survey of 1,000 Americans.

The data is on their side. Home prices have increased at a rate 2x higher than overall inflation in the past decade. Inflation has risen 31% since 2013, but the median home price is up 63% — from $264,800 to $431,000.

The gap between inflation and home prices is even more apparent when looking back over the past 60 years.

Home prices today are 2.4x higher than they would be if they had merely kept pace with overall inflation since 1963. The median American home would cost only $177,511 today, compared to the $431,000 it actually costs, according to Federal Reserve data.

Read the Clever Report here-

So, buying a home costs 240% more today than it did in 1963.  And that is a National average.  Things are even worse here.

Boomers Really Can’t Get There – The Playing Field Is Not Level

In fact, homes are nearly twice as expensive for millennials as they were for baby boomers in their 30s, when adjusting for the typical income. When boomers were in their 30s, around 1985, the median home was 3.5x more expensive than the median household income. The median household income was $23,620, and the median home price was $83,200.

In 2022, when most millennials were in their 30s, the median home price was 6.3x more expensive than the median household income. The median household income was $74,580, and the median home price was $468,000.  https://listwithclever.com/research/housing-inflation-2024/#comparison

A Word About Council President Anthony Martin – Is He The One?

We attended the Council meeting ten days ago. In that meeting, Council President Anthony Martin stated why the City of Hillsboro needed to pass some strong policies regarding Short-Term Rentals.  Councilor Martin has been the only voice we have heard who is genuinely concerned about our people and at least showing some signs he wants to change.  There is plenty we can and are not doing, and this group of Councilors and Mayor Callaway have heard from me and others about the need to do more.  But crickets are all that seem to be making noise at the Palace on Main.

Martin made a statement about improvements that restricting vacation rentals can make:

“It does have a minor impact on our home prices, and while it is a minor impact, it’s still an impact and we’re in a position right now where the housing crisis is such that I think any tools we can use to help make sure that we can keep our community affordable for folks who want to live here, too, is important”.  Anthony Martin- Hillsboro City Council

There are so many more tools, Anthony- and it is time for you and the Council to put them to work.  I hope Councilor Martin considers a Mayoral Run- he really should because he is trying- and I sure can not say that about others in line for the throne- at least not yet.

Follow our Housing Hillsboro series each week as we dig deeper and deeper into the housing crisis. We have to fix this, and we can. Giving Millenials and Generation Z citizens, especially the kids raised here, a path to homeownership is on us. And if you are in those groups, I hope you weigh in and jump into the fray. Our politicians need to hear from you—they really, really do.

Hillsboro Passes New Short Term Rental Rules Allowing Path Forward For Illegal Units In City To Comply