Portland Households Experiencing High Income Growth
By Victor Schramm, CFS®
It’s no secret that Portland’s economy has become more dynamic over the past decade. Portland is currently the most moved-to city in the nation for Millennials. 1 Oregon has had one of the highest net-immigration statistics over the past few years, owing largely to Portland. 2
According to the US Census, Portland is number 4 in the nation for household income growth. 3 Additionally, Portland grew from the 22nd wealthiest city to the 8th wealthiest city in America. 4 This cuts against a long standing stereotype that young people have moved to the city in droves only to become baristas and store clerks. While the largest occupation group for immigrants to Oregon is “Food Preparation and Serving” according to the Census Bureau (5), other occupations with high net immigrant numbers include Healthcare, Computer & Mathematical work, and Architecture & Engineering. All of those careers earn higher than average income annually.
What's Driving the Growth?
Every economic boom has an engine- a dynamic force that drives the trend. According to the Oregon Office of Economic Analysis, one of the major reasons for the growth is the preponderance of educated young people moving to the city. Whereas other major metropolises attract young people with anchor employers (i.e. Minneapolis-St. Paul’s heavy concentration of Corporate World Headquarters) or professional options (e.g. Chicago, San Francisco, etc.), the OOEA believes Portland’s rising young adult class is largely self-directed. 6
Corollary industries have shared in the success of these households, with Real Estate, Construction, Architecture & Engineering, and service jobs serving new markets. Some of these trends are major challenges for city planners & policy makers: Portland, along with other Cities in the State like Eugene and Bend, is suffering a major housing shortage. While that’s led to higher than average Real Estate price growth (which arguably benefits the established Middle Class and Baby Boomers), Portland renters are heavily burdened with housing prices.
Top 10 Cities by Income Growth, 2005-2018
Conclusion
Portland’s economy is growing at a strong pace. That growth has been driven by immigration to the city. What remains to be seen is a) whether that immigration growth trend can continue at a steady pace going forward, b) what would happen to the impressive growth metrics of Portland were immigration growth to slow down substantially, and c) in what ways the new immigrants to the city will consolidate over the next decade. Are they more likely to move to the next hottest spot? Will they raise families in Portland and create new generations of regional population? For now, most industries in the area are enjoying the trend.
Meet the Author & Portfolio Manager
Victor Schramm is a Certified Fund Specialist (CFS®), with expertise in Mutual Funds, ETF’s, and Variable Annuity Separate Accounts. He focuses on portfolio construction & Financial Planning as the lead advisor of Chaim Investment Advisors. He lives in Portland, OR.
Victor Schramm, CFS®Analyst & Portfolio Manager
Disclaimer:
This information is solely a representation of publicly available facts intended for educational use only. This is not a solicitation to buy or sell any public or private Security, in any city named in the article or elsewhere. Neither is it a recommendation to invest in any named fund or business. Regional Demographics is not an investment thesis in and of itself and requires enhanced expertise and due diligence on the part of investors. Regional Demographics is not a useful market timing tool.