Income & Affordability
House and rent prices have been increasing in Corvallis for several years. Corvallis is consistently ranked as the most rent-burdened community in Oregon by the Department of Land Conservation & Development.
1. Family Income Distribution
Income influences housing options for individuals and families. The OSU student population is both transitory and an integral part of the Corvallis community; because of this the Housing & Neighborhood Services Division looks at both household income and family income to evaluate the distribution across income ranges. Family income shown above focuses on the nature of the housing system outside of students, with family income defined as the income generated by two or more people related by birth, marriage, or adoption and residing together. The chart on the left shows family income data in $50,000 quintiles. The chart on the right shows the distribution of family income for all those earning below $100,000 at $25,000 increments. The median family income for Corvallis in 2023 is $98,200. Sources: 2021 ACS 5-year estimates, HUD.
2. Home Prices Versus Income
In 2022, the median single family home sale price was $551,117. Using family income data and the general rule that a house should cost about 3.3 times a family's annual income, a family in Corvallis would need an annual income of $167,005 in order to afford a home selling at this price. The gray dotted line on this chart indicates the upper limit of what the median sale price of a single family home should be in order to be affordable for a median family income. According to this chart and the family income distribution shown in chart 1, this suggests that in 2021, over 56% of families were not likely to find a single family home within their price range within the City. Using these measures of affordability, Corvallis housing was generally affordable prior to 2005 but in recent years has become increasingly unaffordable. In 2017, housing prices and income trend lines diverged which can signal market challenges such as in the years leading up to the Great Recession. Sources: Benton County Assessor's Office, US Census, & Oregon Office of Economic Analysis.
3. Fair Market Rent for 1, 2, 3, & 4 Bedroom Apartments
In 2022, a family income of $50,880 was needed to afford a two bedroom apartment in Corvallis, and a family income of $72,276 was needed to afford a 3 bedroom apartment. For perspective, a family earning minimum wage would need to work a total of 82.5 hours a week to afford a 2 bedroom unit, or 93.6 hours per week to afford a 3 bedroom unit. Sources: HUD, Oregon Bureau of Labor & Industry, US Department of Labor.
4. Severely Cost Burdened Households
The Housing and Urban Development Act defines "affordable" housing as any housing that costs 30% or less of a household’s income. Those with housing expenditures that exceed 30% are defined as cost burdened and those with housing expenditures that exceed 50% are defined as severely cost burdened. The chart above uses data from the years consolidated plans were published and indicates that renters in Corvallis are disproportionately cost burdened compared to homeowners. It is unclear which factors caused the significant increase in severely cost burdened renters between the 2008 and 2013 consolidated plans. Source: HUD
