Oregon Consumers Grow More Anxious About 2026 Economy as Costs Surge Across the State
All indications suggest that Oregon will not escape growing national consumer apathy about the economic outlook for 2026, despite the record-breaking ‘Super Saturday’ spend by Beaver state residents.
Consumer sentiment has dropped 30% below last year’s financial barometer, mainly fueled by the financial pressures of cost-of-living increases and a weakened labor market, according to a University of Michigan consumer survey.
Source: University of Michigan Surveys of Consumers / December consumer sentiment readout
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Highlighting the deepening consumer concern is that 47% of people surveyed last month expressed anxiety about high prices, 12% more than those interviewed at this time of year in 2024.
Another concern is the impact of tariffs on major purchases such as vehicles and larger household appliances. Expenditure on durable goods decreased by 6% in November, which is more than 40% lower than purchases recorded a year ago.
Unemployment is of Growing Concern
However, it is the labor market that is fueling consumer concerns about a potential economic recession. The survey reveals that 63% of respondents expect unemployment to worsen in 2026, representing a 40% increase compared to 2024.
The survey reflects a 1.9 point gain in consumer sentiment for December, even though the overall index is 28.5% lower than in 2024.
Oregonians are concerned about bread-and-butter expenses – the cost of housing, steep energy and transportation costs statewide, and a downturn in wage growth in sectors such as tourism, retail, and small businesses.
No one can dispute that Oregon is one of the most beautiful states in the country. However, it is definitely not the cheapest.
Oregon Per Capita Annual Expenditures
According to the Bureau of Economic Analysis’ Personal Consumption Expenditures by state report, the average annual per capita costs Oregonians $10,005 for housing and utilities, $9,155 for healthcare, $4,933 for household food and beverage, between $964 and $1,580 for childcare, $1,311 for gas and energy, and $30,007 for personal expenditures.
Source: U.S. BEA via FRED / Oregon per capita PCE series (latest annual values shown)
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Oregon Housing Costs
The typical cost of a home in Oregon in June 2024 was $490,095. However, the average sales price is only $355,000, according to the real estate marketing and technology company, Zillow.
The cost of a home is dictated by location, and Portland is the most expensive metropolitan city in which to reside with the average home priced at $541,122.
Hood River, with its limited housing stock and strong local industries such as tech, tourism, and agriculture, is the most expensive area to live in, with the average home costing $678.577. Bend, with its desirable outdoor lifestyle and natural beauty, comes in a close second at $666,206.
Once again, Portland stands out as an expensive city for renters. Data provided by the U.S. Census Bureau shows median costs at:
- monthly mortgage cost:$2,080
- studio rent:$1,251
- one-bedroom rent:$1,280
- two-bedroom rent:$1,490
- three-bedroom rent:$1,783
- four-bedroom rent:$1,990
- gross rent:$1,481
Average monthly costs in the Beaver State are $383 for utilities, $118 for electricity, $117 for cable and internet, $94 for water, and $32 for gas.
Add $411 month for food and groceries, and between $9613 and $17,888 for transportation, depending on where you live.
Oregonians living in major metro cities like Portland are served by public transportation resources, but Oregon is a vast state with numerous small communities that rely on personal vehicles for transportation.
Oregon Has One of the Highest Marginal Tax Rates in the U.S.
Oregon’s progressive social agenda has led to a 9.9% marginal tax rate, one of the highest in the U.S.
Here is the income level where Oregon’s 9.9% top rate starts to apply.
| Filing group | Taxable income range | Marginal rate | Rate chart note |
|---|---|---|---|
| Single or married filing separately | $50,000 to $125,000 | 8.75% | Base tax at $50,000 is $4,073 |
| Single or married filing separately | Over $125,000 | 9.9% | Base tax at $125,000 is $10,636 |
| Joint or head of household or qualifying surviving spouse | $50,000 to $250,000 | 8.75% | Base tax at $50,000 is $3,774 |
| Joint or head of household or qualifying surviving spouse | Over $250,000 | 9.9% | Base tax at $250,000 is $21,274 |
Apart from California (13.3%), Hawaii (11%), and New Jersey (10.75), Oregon’s marginal tax rate is the fourth-highest in the country. These figures exclude the cost of federal income tax.
Residents of Portland also pay an Arts Tax, a fund that supports school teachers and arts-focused nonprofits.
It does not take a rocket scientist to grasp that Oregon is not a cheap state in which to live. It requires a creative budget and a decent income.