Oregon Families Struggle to Afford Bigger Homes as Cost of Adding a Third Bedroom Skyrockets Across the State
While a study may have found that Gilliam is the cheapest county in Oregon for families needing to upsize to a three-bedroom home, it is also one of the least populated areas in the state, situated in a small rural community far from any major metropolitan area.
Based on information from the National Low Income Housing Coalition’s 2024 Out of Reach report, the study found that it costs an average of $324 a month to upsize to three bedrooms in Gilliam, with costs ranging from $785 monthly more in Clackamas, Columbia, Multnomah, Washington, and Yamhill.
However, Gilliam has 1,995 residents, and is the third-least populous county in Oregon. Add to that the fact that the nearest metropolitan area is Portland, a distant 150 miles away, and there is little to attract families to relocate to this eastern rural area of Oregon.
The Most Expensive County in Which to Upgrade Property Size is Douglas
Somewhat strangely, it is Oregon’s 11th most populated county – Douglas – that is the most expensive to upgrade to three bedrooms, costing 42.03% extra a month.
According to research by Daily Tidings, the reason for this is that the cost of rental properties in Douglas is fueled by high buyer demand, limited housing stock, and rising house prices. Significant demand and slow development of new construction are the key factors.
The study by the LA property management company, RentalHouse Property Management, found that the average rental cost for a two-bedroom home is $1,682. This figure skyrockets to $2,345 for a three-bedroom home.
In Gilliam, a two-bedroom home costs $1,141 to rent, while three-bedroom homes cost $1,465 a month. The next most affordable counties for expanding families are Clatsop, Linn, and Sherman.
The Cheapest Three-Bedroom Homes in Oregon are in Harney and Wheeler
The cheapest three-bedroom homes in Oregon are in Harney and Wheeler, where families pay $1,275 a month. However, both counties are small in terms of population and remote due to their large geographic sizes.
Upsizing from a two to a three-bedroom home is the most expensive financial leap facing American families, says Paul Kiledjian, CEO of RentalHouse Property Management.
He says that on average, the extra third bedroom hikes the cost of rentals by 31%, and it is at this point where many families consider buying their own home.
A third of US households rent their homes. Kiledjian says that, on average, tenants wanting to upsize can expect to pay an additional 19.5% for each extra bedroom. Upgrading from a studio to a one-bedroom home adds 9.3% to rental costs, while two bedrooms will see the rent increase by 21.8%.
Americans can expect to pay 31% more for upsizing from a two-bedroom to a three-bedroom property, and upgrading from three to four bedrooms will cost 15.8% more.