Increases in the cost of living is big news nationally. In the Pacific Northwest, the cost of living surges in Portland and Seattle, ranked among the top three in large metro markets, according to a recent report. From 2010 to 2020, the cost of living in the Portland metro area rose 22%.Homes in Portland rose from $455,000 in December 2020 to $511,000 in December 2021. There is not enough housing supply in Portland to meet demand.
Oregon cities also ranked high in the cost of living study. Among small metros, the Albany-Lebanon area ranked No. 1, with a 23.2% increase, while Bend was No. 4, with a 22.5% increase. Salem and Eugene-Springfield ranked Nos. 7 and 8, respectively, with a roughly 18.7% rise in cost of living, among midsized metros.
The federal minimum wage is $7.25 per hour while Oregon’s state law sets the minimum wage rate at $12.75 per hour in 2022. A salary of $78,000 in Portland, Oregon should increase to $96,629 in Lake Oswego, Oregon; assumptions include Homeowner, no Child Care, and Taxes are not considered. Beginning July 1, 2023, the minimum wage rate will be indexed to inflation based on the Consumer Price Index (CPI), a figure published by the United States Bureau of Labor Statistics.
Millions of Americans are still earning less than $15 an hour. The nonpartisan Congressional Budget Office calculates that even by 2025, roughly 17 million workers will remain below that level.
In Oregon, the minimum wage rate varies depending upon an employer’s location categorized by: standard counties: Portland’s metropolitan area; and nonurban counties. The wage increase for each location will be as follows: standard counties: $13.50 per hour; Portland metro region: $14.75 per hour; and non urban counties: $12.50 per hour.
