Affording Basic Needs Is Difficult for Many Oregon Households

Affordability was a key campaign issue in the blue wave that washed over Oregon and the country on Tuesday, with many voters worried they could be just a surprise medical bill or emergency car repair away from financial crisis.

It turns out that Oregon, a solidly blue state, is among the least affordable states in the nation, where 4 out of 10 households don’t earn enough to afford their basic needs, according to a national report released earlier this year.

The report used an economic measure called ALICE (Asset Limited, Income Constrained, Employed) to identify households that earn above the federal poverty line but not enough to afford such basics as sufficient gas to get to work or fresh fruit to eat.

In ALICE terms, Oregon ranks as a high poverty state—34th (only 16 states are worse)—for the percentage of households with at least one employed person who are living paycheck to paycheck, although that ranking has improved slightly over the past few years.

The governor lacks the authority to limit gas prices or to fix many issues causing inflation and unaffordability, added Rick Metsger, a Salem lobbyist and former state senator. One area where Kotek does have some pull: the expensive and lengthy permitting and regulation processes for construction, Metsger said.

More home construction brings jobs back to Oregon and makes housing more affordable.

The ALICE measure also gives lawmakers a better target to aim for, said Emily Wilson, spokeswoman for United Ways of the Pacific Northwest.

“[If] almost half the people in the state of Oregon are struggling, then we need to make changes for working class people in the state,” Wilson said.

The economic plight of struggling Oregon families has likely worsened since the report by United for ALICE, a United Way program. That’s because the report’s data doesn’t account for recent hikes in gas prices driven by the U.S.-Israeli war with Iran and increased basic grocery costs prompted by federal tariffs.

“That’s affected the price of everything,” Metsger said of gas prices. “It wasn't like a slow boil with the frog in the pot. It just boiled really fast, really hot.”

Households in Malheur, Harney, Wheeler and Wasco counties struggle the most, according to the report. More than half the households in those four counties didn’t earn enough to support their basic needs.

Metsger hopes the new Democratic majority in Congress can reverse spending cuts to Medicaid that have put Oregon health care under pressure.

“Reversal of any kind would be a big boost to the state budget,” Metsger said. “That would ease some of the pain as legislators try to work on the adjustments to the Oregon Health Plan.”