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Health insurance coverage dipped along with the state, U.S. economy

Tuesday, November 1st, 2011

Recent figures from the U.S. Census Bureau’s Small Area Health Insurance Estimates (SAHIE) show the number of Americans without health insurance increased from 42.9 million in 2008 to 45 million in 2009.  Similarly, in Oregon (see Table 1), the number of uninsured residents also increased.  In 2008, 579,893 (+/- 14,020) of the state’s residents, or 18 percent (+/- 0.4 percent), were without health insurance.  In 2009, the ranks of the uninsured grew to 628,573 residents (+/- 14,264), or 19.4 percent (+/- 0.4 percent)*.

Males in Oregon were more likely to be uninsured compared with females.  The number of uninsured males increased from 19.3 percent (+/-0.6 percent) in 2008 to 20.9 percent (+/-0.6 percent) in 2009.  The number of uninsured females also increased during the two-year period (16.6 percent [+/-0.6 percent] to 17.8 percent [+/-0.6 percent]).

Table 1: Percentage of Uninsured Oregon Residents by Sex, Race/Ethnicity, and Income

*These categories indicate ratio between family income level to the federal poverty threshold. Lower ratios define lower income.

SAHIE estimates also demonstrate inequitable rates of health insurance coverage according to race/ethnicity.  In 2009, Hispanics in Oregon had the highest overall rate of uninsured population, at 34 percent (+/- 1.4 percent).  The Black alone, non-Hispanic population had an uninsured rate of 20.4 percent (+/- 1.9 percent); the White alone, non-Hispanic population had an uninsured rate of 17 percent (+/- 0.5 percent).

Every income bracket — which is defined by the ratio of family income to the federal poverty threshold — showed a decrease in Oregonians’ health insurance coverage, the data show. Poorer people, however, were most likely to be uninsured.

Oregon Counties

Across Oregon, the highest proportion of uninsured residents was in Wheeler County (see Table 2), where approximately 31.9 percent (+/- 2.7 percent) of people were uninsured in 2009.

For counties with more than 40,000 residents, Marion County had the highest levels of uninsured people with rates of 22.1 percent (+/- 1.3 percent) and 23.9 percent (+/- 1.3 percent) during 2008 and 2009, respectively.

In the Portland metropolitan area, residents of Multnomah County were more likely to be uninsured compared with their metro neighbors.  What’s more, Multnomah County also experienced the largest gain in the percentage of the uninsured (16.8 percent [+/- 0.8 percent] to 18.9 percent [+/- 0.9 percent])*.

Table 2: 2008 and 2009 Percentage of Uninsured Oregon Residents by County

SAHIE Estimates

Unlike the U.S. Census Bureau’s American Community Survey (ACS), which provides single-year health insurance estimates for populations of at least 65,000, SAHIE produces model-based[i] estimates of health insurance coverage for all counties and states, regardless of population size. What’s more, SAHIE data[ii] provide information about health insurance coverage by sex, age, race/ethnicity, and income at the state level. Health insurance coverage by sex, age and income are available at the county level.

SAHIE 2008 and 2009 estimates include ACS data for the first time. Health insurance coverage and income group distributions (from the ACS) provide significant improvements in the precision of SAHIE estimates. An important caveat, however, is that because SAHIE data from 2008 and 2009 are estimated with a different data source than earlier estimates, SAHIE data from previous years should not be compared with 2008 and 2009 estimates.

To download and view SAHIE estimate data, click here.


*Statistically significant difference at the 90 percent confidence level.

Note: SAHIE data are based on survey estimates.  As such, all data should be interpreted with the corresponding Margin of Error (MOE) estimate.  MOE is the difference between an estimate and its upper or lower confidence bounds.  Confidence bounds can be created by adding the MOE to the estimate (for an upper bound) and subtracting the MOE from the estimate (for a lower bound).  All published MOE values are based on a 90 percent confidence level.

The SAHIE program uses the following data sources to model health insurance coverage: The American Community Survey; demographic population estimates; aggregated federal tax returns; participation records for the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp program; county business patterns; Medicaid and Children’s Health Insurance Program (CHIP) participation records; and Census 2000.

All data pertain to those younger than 65 years of age.


Charles Rynerson, Risa Proehl and Michael Burnham contributed to this report.

Who’s Home? – A Look at Households and Housing in Oregon

Wednesday, September 28th, 2011

Where we live and who we live with have a huge influence on our everyday lives. Do we live alone or share a home with family or friends? Do we own or rent? How affordable is our housing when compared to our income and how is the value of our house changing? All of these issues shape how we live our lives.

Similarly, housing and households influence the character of neighborhoods and communities. The share of households with children and seniors, the share of households that rent or own, the size of households, and the cost and supply of housing can affect community resources, demographics and livability.

Every ten years, we get a snapshot of the nation’s households from the decennial census. In between census years, we get an update of that picture plus additional information from the American Community Survey. This article explores changes in the size, structure and financial condition of Oregon’s households, from 2000 to 2010, using data from the U.S. Census Bureau’s 2000 and 2010 decennial censuses and the 2005-2009 American Community Survey.

Households are occupied housing units. The type of people who occupy them is changing slowly over time. The composition of households is descriptive of the population in general and is indicative of the dynamics of an area’s demographic and socioeconomic characteristics.

Household Type and Average Size

In Oregon and in the United States, the share of households with children has been declining. Conversely, the share of households that are non-family households, including those where the householder lives alone, has been increasing. Contributing to the rising share of one-person households is the increasing share of senior citizens, especially women, who outlive their spouses.

According to the U.S. 2010 Census, roughly two-thirds of all households in Oregon were family households (households with spouses, children, or other relatives). More than a quarter of all households were composed of persons living alone, and the rest were composed of either group-living situations or non-family households (e.g., roommates, boarders). From 2000 to 2010, the percentage of households with people living alone increased by about a percentage point, while there was a decrease among family households and households with children. Counties with student populations or migrant workers generally have the highest percentages of non-family households. As college enrollments have been rising, so has the student resident population living in roommate situations; this is also true of agricultural workers.

Statewide, about a third of households have children, and almost a third of family households with children were headed by single parents. More than two-thirds of these single-parent households were headed by single-mothers; however, nationally and in Oregon, the share that was headed by single-fathers increased, although slightly, from 2000 to 2010.

Oregon counties with the smallest shares of households with children are counties that are popular destinations for retirees and are not necessarily attracting many young families (Figure 1). Thus, the population is aging in place.

The share of households with residents age 65 or older increased slightly faster in Oregon compared with the United States as a whole. From 2000 to 2010, Multnomah and Hood River counties were the only counties in Oregon without an increase in the share of households with persons age 65 or older. This is likely due to a higher rate of young adults moving to Portland for creative and employment opportunities and to Hood River County for recreational and outdoor amenities.

Alternatively, the counties with the largest share of households with one or more persons age 65 or older in 2010 were: Wheeler, Curry, Josephine, Grant, Baker, Coos, Douglas, Lincoln, Sherman, Tillamook, Wallowa, Gilliam, Lake, Crook, Harney, Malheur, Jackson, Wasco, Jefferson and Klamath; all had 30 percent or more households with seniors. Some of these counties are popular destinations for retirees (Curry, Josephine, Coos, Lincoln, Tillamook, Jackson), and others have aging populations.

Figure 1

Source: US Census Bureau

The average number of persons per household (PPH) changes along with shifts in household type. A smaller share of family households and a larger share of one-person households lead to smaller average household sizes.

Generally in Oregon, as in the United States, the PPH has been declining over the past few decades. Typically, the PPH changes slowly over time; it also depends on characteristics of the population and how those characteristics change over time. The PPH is largely influenced by the age structure of the population (e.g., a large number of children implies larger household sizes), and to cultural practices (e.g. fertility levels and the propensity for extended families to live together). The economy affects the PPH to a lesser extent and on more of a temporary basis (e.g., promotes the opportunity to live alone or the need to double-up).

Overall, in the United States, declining fertility rates of the white non-Hispanic majority population contributed to the decline in PPH in recent decades. However, during the 2000s, declining fertility and PPH started to become offset by the changing ethnic make-up of the population. Consequently, the pace at which PPH had been shrinking has decelerated.

Nationally, the average household size barely decreased from 2000 to 2010 (from 2.59 to 2.58). Because of a larger white non-Hispanic population, Oregon’s PPH dropped from 2.51 in 2000 to 2.47 in 2010. Still, the drop was not as great during the previous decade. Additionally, the PPH didn’t change much in the Portland three-county metropolitan area during the decade. The decline that had been occurring previously was likely offset by the increasing share of Hispanic population, particularly in Washington and Multnomah counties. PPH for the three-county Portland area was about the same as for Oregon in 2010.

All counties in Oregon, except Marion and Umatilla, experienced a decline in PPH, however slight (Figure 2). The counties that experienced the greatest decline were those with aging populations where the share of seniors is increasing, or those where fertility rates were lower, or were declining at a faster pace, than other Oregon counties.

The counties with the smallest PPH in 2010 were: Curry, Gilliam, Wheeler, Grant, Lake, Lincoln and Wallowa. These counties have relatively large retirement communities or aging populations.

Figure 2

Source: US Census Bureau

Most families reside in single-family housing units, which means single-family units generally have a higher household size than multi-family units. And since most multi-family units are occupied by persons who rent rather than own their home, renter-occupied households typically have a lower household size than owner-occupied households.

Housing Tenure

In general, most households are occupied by homeowners rather than renters. In 2010, 62 percent of Oregon households were owner-occupied, which is slightly lower than the national percentage (Figure 3). In all but one of Oregon’s counties, the percentage of owner-occupied households declined from 2000 to 2010; Washington County’s share of owner-occupied households was about the same in 2010 as it was in 2000. Counties with the largest share of owner-occupied households were: Columbia, Grant, Wallowa and Crook. Ownership in these counties ranged from 70-75 percent, which means their share of renter-occupied households was lower than the state average of 38 percent.

Figure 3

Source: US Census Bureau

Usually, the highest share of renter households is in more urbanized counties and especially where there is a large college student population. Rental housing must be extensive enough to accommodate the demand from persons who require temporary living situations. Still, in these areas, renter-occupied households consistently represent less than the majority of households.

The disparity between the share of owners and the share of renters was the least in Multnomah County, followed by Benton and Lane counties. According the Census 2010, the share of owner-occupied households was 55 percent while the share of renter-occupied households was 45 percent in Multnomah County.

Housing Affordability

Another difference between renters and owners is housing affordability. Many renters are renting because they cannot afford to purchase their own home. However, this does not necessarily mean that renters can afford their housing expenses.

Housing affordability is measured by the level of cost-burden. A household is considered cost-burdened if 30 percent or more of the household income is spent on housing costs.

According to the 2005-09 ACS, more than a third of households in Oregon were cost-burdened, which is slightly higher than the national figure. Additionally, the share of households, both nationally and in Oregon, that was cost-burdened increased from 2000 to the 2005-09 period by several percentage points (Figure 4). The counties in Oregon that tend to bear the highest share of cost-burdened households were in the most urbanized areas. Oregon counties with the highest shares of cost-burdened households reported in the 2005-09 ACS are: Multnomah, Jackson, Josephine, Lane, Benton, Curry, Lincoln, Clatsop, Marion and Deschutes. Here, approximately 40 percent of the households were reported to be paying 30 percent or more on housing costs. Multnomah County was highest in percent and number: More than 122,000 households were estimated to be paying 30 percent or more of their income on housing costs.

The counties consistently reported in 2000 and in the 2005-09 ACS to have the smallest percentage of cost-burdened households were: Wheeler, Grant, Morrow, Lake, Harney, Gilliam and Sherman.

Figure 4

Source: US Census Bureau

Typically, a larger share of renters than owners is cost-burdened. This is likely due a larger share of lower-income households being renters than owners. Both nationally and in Oregon, about half of renter-occupied households were cost-burdened. Slightly less than one-third of owner-occupied households were cost-burdened, according to the 2005-09 ACS data.

In all Oregon counties, a greater percentage of renters than owners was paying 30 percent or more of their income on housing. Four of the five Oregon counties with the highest percentage of renter cost-burden were counties with public universities: Multnomah, Lane, Benton and Jackson. The most disparity between renters and owners paying 30 percent or more on housing was in Baker, Gilliam, Wheeler and Benton counties. Home to Oregon State University, Benton County has a large percentage of student population, and the fact that most students don’t work full-time could explain this difference.

Housing Value and Vacancy

Housing costs, coupled with income, contribute to cost-burden and housing affordability. Thus, a high share of cost-burdened households does not necessarily indicate expensive housing. However, in Oregon, the median housing value was approximately 32 percent higher than the national average of $185,400.

According to the 2005-09 ACS, the median housing value for owner-occupied housing units in Oregon was about $244,200. Median housing values in about half of Oregon counties were between $200,000 and $300,000. Counties in Oregon with the highest median housing value were: Clackamas, Deschutes and Washington. The median housing value in these counties was about $300,000 or more.

Counties with the lowest housing values were east of the Cascades; here, the median housing value was $200,000 or lower. Wheeler, Gilliam, Morrow, Lake, Sherman, and Harney counties were most affordable, with values closer to $100,000.

Housing value is affected by the economy, but more so by the demand for housing. The counties with the lowest values are also the counties with the highest vacancy rates (Figure 5). Again, the ACS data show that most of these counties are east of the Cascades.

Figure 5

Source: US Census Bureau

A housing unit is considered to be vacant if it is not anyone’s usual place of residence. Statewide, about 9 percent of housing units were vacant in 2010 (the national vacancy rate was 11 percent). This percentage, however, includes seasonal housing (e.g., vacation homes); when these units are excluded, the Oregon rate is less than 8 percent. This shows that not all vacancy rates reflect a surplus of housing. The share of housing units that is seasonal in Oregon and the United States was reported to be around 3.5 percent. Nationally, the share of seasonal units declined by 3 percentage points from 2000 to 2010. However, the share increased in Oregon by 4 percentage points. The counties in Oregon with the largest share of housing stock in 2010 that is seasonal were: Tillamook, Lincoln and Clatsop on the coast; Wallowa to the east, in the Wallowa Mountains; and centrally located Wheeler, surrounded by the John Day Fossil Beds.

Nationwide, an increase in housing vacancy from 2000 to 2010 was commonplace. Vacancy rates increased in all Oregon counties but one during the same time period. Benton County was the only Oregon county where the vacancy rate actually decreased during the decade, but by a just a fraction of a percent.

Oregon counties where vacancy rates increased the most in the 2000s were Tillamook, Crook, Wheeler, Lincoln and Hood River. Each county’s vacancy rate increased by at least 5 percentage points during the decade. Although the highest vacancy rates were in Tillamook, Lincoln, Wheeler and Clatsop counties, when seasonal housing is factored out, Wheeler is the only county that remains amongst the counties with the rates above 10 percent. The other counties with the highest vacancy rates were Gilliam, Harney, Lake and Grant counties.

Generally in Oregon, regardless of seasonal housing, vacancy rates were lowest in counties along the Interstate 5 and the Interstate 84 corridors. The lowest vacancy rates in Oregon reported by Census 2010 were in the Willamette Valley counties (Benton Washington, Multnomah, Clackamas, Yamhill, Marion, Polk and Lane), Columbia County, Union County, and in the Columbia River area counties of Wasco, Morrow, Umatilla and Hood River.

In conclusion, some of Oregon’s more rural counties, east of the Cascades, tend to have a higher percentage of single-family residences and a greater supply of affordable housing. Conversely, and perhaps not surprising, the most expensive housing in the state is generally in the state’s most-populated counties, and those along the Interstate 5 corridor.

Additionally, over the past decade homeownership in Oregon generally has decreased. This condition is affected by the economy and could turn around as the economy improves over the next several years. Household composition, however, which is not so affected by the economy, is prone to certain trends that are expected to continue over the near future: The share of households with seniors is increasing; the share of children’s households is declining; and, the average household size is stabilizing.

FOOTNOTES:

1 Housing units were living quarters for 97.7 percent of Oregon’s population according to Census 2010; the remaining population, or 2.3 percent (86,600 persons), resided in group quarters facilities (group living situations such as prisons, nursing homes, and student dormitories). Depending on the living situation, the homeless population are included as living in special housing units (classified by the Census Bureau as ‘Other’ housing units, such as tents or vans) or in group quarters facilities such as emergency shelters. The share of population residing in group quarters generally hasn’t changed much throughout recent decades, but it could increase as the share of elderly is on the rise and the demand for nursing homes may become more prominent. Nationally, about 2.6 percent of the population resides in group quarters.

2 Single-family residences can be separate, stand-alone structures or can be attached as long as the separating wall reaches from the ground to the roof. Multi-family residences exist in structures that hold multiple dwelling units such as duplexes, apartments, townhouses, and some condos.

Editing assistance from IMS/PRC Director Sheila Martin, PRC Assistant Director Jason Jurjevich, and graduate research assistants Michael Burnham and Ryan Dann.

A Pivot Point? Economic Slow-down Affects Oregon’s Migration Flows

Monday, May 16th, 2011

The combination of three components: fertility, mortality, and migration, collectively lead to population change. Fertility and mortality events in recent history, including escalated fertility levels associated with the ‘baby boom cohort’ and spikes in mortality linked to the Spanish Flu of 1918 for example, have produced demonstrative demographic effects.

However, both the unpredictability and ability of migration to produce virtually immediate impacts, often enduring for decades across social, cultural, demographic, and economic landscapes, has long captured the attention of scholars and public policy makers alike.

Over the past several decades here in Oregon, migration has undoubtedly shaped the state socially and culturally, but equally pronounced and perhaps more tangible have been the long-term challenges and prospects linked to the reciprocal relationship between migration and economics.

The Beaver State grew by more than 400,000 people during the first decade of this century, and nearly half of the growth was concentrated in Deschutes, Multnomah and Washington counties.

While roughly two-thirds of the state’s population growth was attributable to net in-migration, much of the migration-related growth occurred during the early 2000s. Due to the migration slow-down accompanying the economic recession that began in late 2007, natural increase accounted for a greater share of Oregon’s population growth.

In addition to Deschutes, Multnomah and Washington counties, other counties with significant net in-migration included Clackamas (Portland metro), Lane (Eugene metro), and Jackson (Medford metro). Counties with net out-migration included, from lowest to highest: Wheeler, Wallowa, Sherman, Baker, Harney, Grant, Morrow and Malheur (Figure 1).

Figure 1

Unemployment rates are a lagging indicator of economic performance, but the relationship between net migration and Oregon’s annual unemployment rate is clear: as the state’s unemployment rate climbs, there is a delayed, but pronounced decline in net migration.

Prior to the economic recession that began in December 2007, net migration in Oregon averaged 28,000 people per year. Indeed, Oregon gained the majority of the decade’s 250,000 net in-migrants during this period. From 2008 through the end of the decade, however, net migration averaged slightly more than 16,000 people annually—half of what it was during the beginning-to-middle part of the decade (Figure 2).

Figure 2

Analyzing net migration and other metrics of migration is important for gauging the relative importance of migration, along with fertility and mortality, as components of population change. However, because counties with larger population (often urban counties) will often send and receive greater volumes of migrants compared with their rural counterparts, it is important to consider a migration statistic that summarizes the relative effect of migration across all counties. While it has some pitfalls, the Net Migration Rate (NMR) (Table 1 and Figure 3) provides such comparability.

Table 1

Figure 3

While Washington County recorded the highest level of net in-migration (35,852) of any county in Oregon, the net gain of 35,434 migrants in Deschutes County represented the highest relative gain. Because Washington County is more than three times as large as Deschutes County, Washington County’s net gain of migrants translated to 7.2 net in-migrants per 100 residents while Deschutes County recorded a 25.1 net in-migration rate. Put another way, 84% of Deschutes County’s gain in population was the result of net in-migration, compared to 43% in Washington County.

Polk, Curry, and Josephine counties recorded the next highest net in-migration rates at 15.2, 13.0 and 11.7, respectively.

The largest net out-migration rates were in the Eastern Oregon counties of Sherman, Malheur and Morrow. Sherman County, for example, recorded a marginal net loss of 133 migrants. However, Sherman’s total population of fewer than 2,000 residents makes it one of the least-populated counties in Oregon. As such, the net loss of more than 100 persons translated into a pronounced relative loss.

Disaggregating domestic and international migrant flow data from the U.S. Census Bureau uncovers an interesting trend for Oregon and its counties.

According to U.S. Census Bureau estimates, during the 2000s, approximately two-thirds of Oregon’s net migrants were domestic migrants; one-third were international migrants. In terms of numbers, 165,000 people were net domestic migrants, leaving 85,000 net international migrants.

As the state average suggests, the net migration in the majority of Oregon counties was due to domestic migration flows. However, some counties had considerably different migration patterns.

In the Portland metro area, for example, Clackamas County reflected many counties across Oregon where net in-migration flows were due to domestic migration (80 percent). However, Multnomah and Washington counties were fundamentally different from the larger state pattern (Figure 4). In Washington County, half of net in-migration was due to domestic migrants and the other half was due to international migrants. In Multnomah County, 90 percent of the net migration gains were attributable to international migrants.

Other Oregon counties where international migration accounted for more than half of the gains in net migration included Benton, Marion and Wasco counties.

Figure 4

Figure 5 is illustrative of general age-articulated migration patterns across the life-course. Persons in their first five years of life have moderate mobility levels that decline through age 17, only to increase significantly at age 18 with moving to college, entering the military or moving for employment following high school. Mobility levels generally fall precipitously thereafter as people settle into jobs and communities.

Using the U.S. Census Bureau definition, which classifies a migrant as someone who crosses political (county) boundaries, Figure 5 illustrates a rather significant decline in the propensity to migrate, across almost all age cohorts, between 2005 and 2009. As explained in Figure 1, the economic recession and housing crisis helped to curb migration rates significantly across virtually all age cohorts.

Figure 5

American Community Survey (ACS) estimates for 2005-2007, the three-year period prior to the economic recession, and for the ensuing three years show a 3.3 percent (+/- 0.8 percent) decrease in the number of movers over the period. Comparing the two periods, the number of migrants declined for virtually all types of moves, but most pronounced were individuals migrating across state lines.

Figure 6 underscores a critically important point—the economic recession did not impede migration rates uniformly across the population. In fact, the opposite is true for Oregon interstate migrants. While there was a statistically significant (95%) decline in the number of migrants moving across Oregon county lines between the two periods, there was no statistically significant decline in the number of interstate migrants with at least a Bachelor’s degree during the period. In other words, mobility levels for migrants with higher levels of educational attainment seemed to be somewhat insulated from the economic recession compared to their less educated counterparts.

Figure 6

The largest sources of migrants to Oregon were from California and Washington. In 2005, 39.8percent (+/- 7.5 percent) and 14.1 (+/- 3.5 percent) of migrants were from California and Washington, respectively. In 2009, however, a decline in migrants from California (24.9 percent, +/- 4.8 percent) led to a corresponding increase in the percentage of migrants from Washington (20.2 percent, +/- 3.6 percent).

According to 2009 ACS estimates, fewer than half of Oregon’s residents were born in Oregon and approximately 1 out of every 7 Oregonians was born in California.

Figure 7

One of the seminal laws of migration, developed by Ravenstein (1885), is that for every migrant inflow, there is a counterstream. Migrant exchanges are often a result of physical distance—places in close proximity share a greater degree of interaction. Figures 7 and 8 underscore these principles of migration.

Where California and Washington were the two greatest sources of migrants to Oregon, these two states were also the top destinations for residents leaving Oregon. In both 2005 and 2009, approximately 40 percent of out-migrants left Oregon for these two states.

Figure 8

Figure 9 assesses the comparability of migration information from three primary sources: the ACS; the number of driver’s licenses surrendered at Oregon Department of Motor Vehicle offices; and, the number of exemptions listed on Internal Revenue Service tax returns for the period.

As Figure 9 illustrates, generally, the data sources confirm the top five origin states for Oregon in-migrants: California, Washington, Arizona, Idaho and Colorado.

Figure 9

Table 2 reports county-specific net migration figures for the three-county Portland region (Multnomah, Washington, and Clackamas counties). The largest absolute flow of migrants out of the Portland region is to Clark County, WA. According to 2004 IRS tax return data, there were almost 4,000 more out-migrants to Clark County, WA compared to in-migrants to the Portland region. The largest net flows of in-migrants come from Los Angeles County, CA and Lane County, OR at 1,300 and 700, respectively.

Because counties with larger populations often send and receive greater volumes of migrants, migration streams are often analyzed in terms of relative flow by using a measure of Demographic Effectiveness, or how ‘effective’ migration streams are at redistributing population. Relying on this metric, the most effective county-specific out-migration streams are to Clark, WA and Deschutes, OR. Conversely, the most effective county-specific in-migration streams are all from California—Alameda, Los Angles, and Orange counties.

Table 2

With an increasingly globalized economy dependent on a highly skilled and well-educated workforce, the future may lead to demand for human capital exceeding the state’s supply from institutions of higher learning. If this is the case, Oregon will continue to be dependent on continued importation of human capital through in-migration. What is clear, with history as a guide, is an inextricable link between in and out migration streams and Oregon’s economy—as demography will undoubtedly determine Oregon’s economic destiny.

Sheila Martin, Charles Rynerson, Risa Proehl and Michael Burnham contributed to this report.


Central Oregon, Metropolitan Portland are state’s fastest-growing areas

Friday, April 8th, 2011

Population grew in all regions of Oregon between 2000 and 2010, and the proportion of Oregonians living in the three-county metropolitan Portland region inched up to nearly 43 percent, according to newly released U.S. Census Bureau data.

Central Oregon grew by 30.5 percent during the decade — the fastest growth rate of any region of the state. By 2010, about 5.2 percent of Oregon residents, or just over 200,000 people, lived in the area composed of Crook, Deschutes and Jefferson counties (Table 1).

The three-county Portland metro region grew 13.6 percent during the decade, the second-fastest rate of growth in the state, according to Census 2010. The metro region, composed of Washington, Multnomah and Clackamas counties, grew by nearly 200,000 residents during the past decade— from 1.44 million people a decade earlier to 1.64 million people in 2010.

Other regions in Oregon — including the Valley, Eastern, Northwest and Southwest — saw their share of the total population shrink because their growth rates were below the state’s 12 percent average. A detailed analysis of population change for Oregon and its regions is below.

Table 1: Population Change, 2000-2010

Oregon was home to 3.8 million people in 2010, according to the census, up from about 3.4 million in 2000. At 12 percent, the state’s growth rate is below the West’s regional average, 13.8 percent, but above the national average, 9.7 percent.

Except for the 1950s and the 1980s, population growth in Oregon has outpaced the national average (Figure 1).

In the 1980s, a marked economic decline, particularly in logging and forest products, stemmed the flow of migrants to Oregon and resulted in a slower pace of growth for Oregon (7.9 percent) compared to the nation (10.4 percent). Population growth in the Portland metropolitan area, however, outpaced the national average with 13.6 percent growth during the period.

Bolstered by strong employment growth and amenity-driven migration, both the Portland metro and the State of Oregon sustained impressive population growth during the 1990s. During the 1990s, U.S. population growth stood at 12.5 percent, but even more pronounced was population growth in the metropolitan area (26.5 percent) and the state (20.4 percent).

Figure 1: Growth By Decade

Counties in the Portland metropolitan area and the Willamette Valley are home to more than two-thirds of the state’s population. The Valley, the state’s second-largest region by population, added 107,510 residents between 2000 and 2010 (Figure 2).

Figure 2: Regional Population Share

While Central Oregon recorded the highest population growth of any region in Oregon during 2000-2010 (30.5 percent), its growth was primarily concentrated in Deschutes County.

Both working-age and retirement-age migrants poured into Bend during the past several decades, leading Deschutes County to the highest population growth of any county in the state at 36.7 percent. Population growth was less pronounced in Crook and Jefferson counties, which grew by 9.4 percent and 14.3 percent, respectively.

At 3.7 percent, Eastern Oregon had the slowest population growth of any region in the state during the 2000s. The fastest-growing county in this region was Hood River County; the combination of an increasing number of residents commuting to Portland, retirement migration, a growing agricultural employment base, and amenity-based migration in the Columbia River Gorge led to an increase of almost 2,000 county residents during the decade.

Gains in Umatilla (7.6 percent), Lake (6.4 percent), and Wasco (6.0 percent) counties represent the next biggest relative gains in population for the region. Of the 15 counties in this region, more than half (8) experienced a population decline during the decade. Many of these counties are not only losing population through net out-migration, but they are also losing population because of natural decrease (deaths exceeding births).

With the highest absolute growth of any region in Oregon, the Portland metro region added almost 200,000 residents during the 2000s (13.6 percent growth). Washington, Multnomah, and Clackamas counties added approximately 85,000, 75,000, and 38,000 persons, respectively, representing three of the top four absolute increases of population in Oregon.

Following the Portland metro region, counties in the Willamette Valley recorded the second-highest absolute growth by adding 108,000 persons during the decade (11.5 percent growth). With population growth of 20.9 percent, Polk County achieved the second-highest relative growth in the state behind Deschutes County (36.7 percent). Marion, the other county in the Salem metro region, had the largest absolute growth (30,500) of any Valley county.

Population growth in Northwest Oregon, 6.6 percent, was half of the state average. However, while Clatsop, Lincoln, and Tillamook counties experienced near 4.0 percent growth, the proximity of Columbia County to Portland largely resulted in the highest growth in the region at 13.3 percent.

Growth in Southern Oregon was highly uneven. With considerable population growth in Medford and Ashland, Jackson County was the fastest-growing county in the region at 12.1 percent. Grants Pass also recorded an increase in its population, which led Josephine County to the second-highest growth in Southern Oregon (9.2 percent). Douglas and Curry counties also had modest population increases (7.2 percent and 5.8 percent, respectively), but Coos County’s increase of 264 persons represented the smallest gain of any county in the region— a 0.4 percent increase over its 2000 figure.

Table 2: Population by Oregon County

Population change is the combination of three components: births, deaths, and migration. The excess of births over deaths leads to a natural increase and the excess of deaths over births produces a natural decrease of population. The third component, migration, either adds or subtracts to population based on whether there is a net positive exchange of migrants (net in-migration) or a net negative exchange (net out-migration).

Between 2000 and 2010, Oregon’s population increased by almost 410,000 persons. Underlying this growth is net in-migration of 250,000 persons combined with a natural increase of approximately 150,000 — meaning that net in-migration accounted for 60 percent of the state’s increase in population.
Washington, Deschutes and Multnomah counties had the largest absolute levels of net in-migration in Oregon — each county added approximately 35,000 persons due to net migration.

While net migration was a significant component of population growth in Washington and Multnomah counties, the majority of population growth was actually due to natural increase. In Deschutes County, however, natural increase only accounted for less than 20 percent population change (Figure 3).

Figure 3: Population Change In Oregon

Other counties where population increase was largely due to net migration include: Lane, Jackson, Polk, and Linn counties. As in the case of Deschutes County, natural increase in these counties only accounted for 10-20 percent of population growth, making net migration the primary component of population change.

Net migration explains population growth in a plurality of Oregon counties. In Marion, Umatilla, Hood River, Morrow, and Malheur counties, however, population increased largely due to natural increase. For these counties, natural increase is attributable in part to their growing share of to Latino in-migrants who are generally younger and have higher birth rates compared to their neighbors.

In Southern Oregon, an aging population in Coos, Lincoln, Curry, and Josephine counties led to a natural decrease in population, combined with small levels of net in-migration.

As Table 3 illustrates, Josephine County had a net in-migration of more than 9,000 persons during 2000-2010, but the county’s population grew by just 7,000 residents because of a natural decrease in population (almost 2,500 persons). For Coos County, its net inflow of 2,400 persons was virtually offset with a loss of 2,200 persons due to natural decrease.

Table 3: Net Migration vs. Natural Increase

The Portland Metropolitan Statistical Area (MSA) consists of five Oregon counties and two counties in Washington State, a more inclusive area than the three-county Metro region reported in the tables above. Between 1980 and 2010, the MSA added approximately 885,000 residents leading to 66 percent growth during the past three decades (Table 4).

The fastest-growing counties in the metro area were Clark and Washington counties. Explosive growth in Clark County (121.3 percent) and Washington County (115.5 percent) resulted in each county adding more than 200,000 residents during the period.
The next-highest absolute gains in population were in Clackamas and Multnomah counties, which added 134,000 and 173,000 residents, respectively, during the past three decades.

Table 4: Oregon Population, 1980-2010

Slower relative growth in Multnomah County (30.7 percent) during the period resulted in population becoming less concentrated in Multnomah County and more evenly dispersed across the seven-county region. In 1980, almost 42 percent of MSA residents lived in Multnomah County, followed by Washington County (18.3 percent). However, in 2010, just 33 percent of metropolitan Portland residents lived in Multnomah County compared to 24 percent and 19 percent living in Washington and Clark counties, respectively.

While the Portland MSA recorded the highest absolute (884,459) and relative (65.9 percent) population growth from 1980 to 2010, other metropolitan regions in Oregon also recorded impressive growth (Table 5). Largely buoyed by growth in Marion County, the Salem metropolitan area recorded the second-highest growth rate (56.4 percent) in Oregon, followed by Medford (53.4 percent).

The Bend metropolitan area is not included in the table below because in 1980, the U.S. Census Bureau did not include Bend as a metropolitan area. Growth in Deschutes County, however, was the highest of any county over the thirty-year period at 153.8 percent.

Table 5: Oregon MSA Population Change, 1980-2010

Institute for Portland Metropolitan Studies graduate research assistant Michael Burnham and Population Research Institute researchers Charles Rynerson and Risa Proehl contributed to this report.


College-educated flock to Central Oregon, metropolitan Portland

Wednesday, February 2nd, 2011

The number of college-educated Oregonians grew steadily during the past two decades — especially in Central Oregon — but there were significant regional disparities across the state, census data show.

The proportion of Oregon residents age 25 and older with at least a bachelor’s degree grew from 20.6 percent in 1990 to 25.1 percent in 2000. The figure climbed to 28.3 percent during the 2005-2009 period, according to newly released American Community Survey (ACS) estimates from the U.S. Census Bureau. The margin of error for the five-year period was plus or minus 0.3 percent.

Average educational attainment in the Portland metropolitan area, which includes Multnomah, Clackamas and Washington counties, was consistently higher than the state average during the past two decades. What’s more, the proportion of college-educated people in the three counties increased more precipitously than any other part of Oregon.

In Multnomah, Clackamas and Washington counties combined, 25.2 percent of residents had at least a bachelor’s degree in 1990. The figure was 31.3 percent in 2000 and 36 percent (+/- 0.3 percent) during the 2005-2009 period. Here’s how the counties changed over time:

  • College educational attainment in Washington and Clackamas counties increased by more than 4 percent, with a margin of error of plus or minus 0.3 percent, following Census 2000.
  • Multnomah County experienced one of the state’s largest increases in educational attainment during the period, at 6.2 percent (+/-0.6 percent). Portland was a major factor: 25 percent of the city’s residents age 25 or older had at least a bachelor’s degree in 1990; the figure climbed to 43 percent during the 2005-2009 period.

In addition to general increases in educational attainment for residents already residing in the Portland metropolitan area, relatively young college-educated individuals moving to the metroplex contributed to the growth.

So, how did other parts of the state stack up?

Central Oregon, including Crook, Deschutes and Jefferson counties, was second to only the Portland metropolitan region in terms of educational attainment. Along with the Portland metropolitan area, Central Oregon had one of the state’s largest increases in educational attainment during the past 20 years (Figure 1, below).

In 1990, 16.9 percent of residents in Central Oregon had at least a bachelor’s degree. In 2000 and during the 2005-2009 period, the figure increased to 22.1 percent and 26 percent (+/- 0.9 percent), respectively. From 2000 to the 2005-2009 period, the region’s largest increases in educational attainment were in Deschutes and Crook counties, at 3.9 percent (+/- 1.1 percent) and 3.2 percent (+/- 2.2 percent), respectively. Population in Deschutes and Crook grew at 48 percent and 42 percent, respectively, during the period — the fastest relative population growth in the state. Ample recreational opportunities, real estate and rural amenities helped lure well-educated migrants.

The Upper Willamette Valley, including Benton, Lane, Linn, Marion, Polk and Yamhill counties, followed Central Oregon. In 1990, 20.6 percent of residents in Upper Willamette Valley counties had at least a bachelor’s degree. The proportion increased to 23.7 percent in 2000 and 24.8 percent (+/- 0.4 percent) in 2005-2009.

In 1990 and 2000, these counties exceeded or kept pace with Oregon’s average educational attainment levels. During the 2005-2009 period, however, buoyed by considerable increases in educational attainment in the Portland metro area and Central Oregon, levels dipped below the state average.

While the Willamette Valley region is the home of several major educational institutions, including the University of Oregon (Lane County), Oregon State University (Benton County) and Willamette University (Marion County), many college-educated individuals seeking employment after completing their degree leave the region, the data show.

Increases in educational attainment after 2000 were greatest in Yamhill and Linn counties, at 2.4 percent (+/- 1.2 percent) and 2.2 percent (+/- 1 percent), respectively. Benton County, with 47.7 percent (+/-1.8 percent) of residents possessing at least a bachelor’s degree, had the highest educational attainment of any county in Oregon.

Benton stood in stark contrast with the Northwest, Southwest, and Eastern counties, which had the lowest levels of educational attainment in Oregon. On average, 14 percent of residents in these counties possessed a bachelor’s degree or higher in 1990; the percentage increased to 17 percent in 2000 and 19.5 percent in 2005-2009. Here’s how the regions compared:

Northwest Oregon, including Clatsop, Columbia, Lincoln and Tillamook counties, experienced a modest increase in educational attainment, from 14.5 percent in 1990 to 20.5 percent (+/- 0.8 percent) in 2005-2009. The largest increases were in Clatsop and Columbia counties, both averaging a 3 percent (+/- 1.5 percent) increase in educational attainment.

Southwest Oregon, which includes Douglas, Jackson, Josephine, Coos and Curry counties, had a modest increase in educational attainment allowing the region to keep pace with Northwest Oregon, albeit at slightly lower levels.,Largely boosted by Coos, Jackson and Josephine counties, 14.1 percent of Southwest Oregon residents had at least a bachelor’s degree in 1990, 17.4 percent in 2000, and 19.7 percent (+/- 0.5 percent) in 2005-2009.

Sparsely populated Eastern Oregon was last among regions in terms of educational attainment. Fourteen percent of the region’s residents had at least a bachelor’s degree in 1990; the figure climbed to 17.9 percent (+/- 0.6 percent) during the 2005-2009 period.

While counties east of the Cascades — excluding Central Oregon — had the lowest levels of educational attainment in Oregon in the latest ACS period, educational attainment rose significantly in some Columbia River counties. Since 2000, educational attainment increased 4.1 percent (+/- 2.7 percent) and 5.5 percent (+/-2 percent) in Hood River and Wasco counties, respectively. In addition to increased commuting from Hood River County to the Portland metropolitan area, recreation, tourism, retirement migration, and technical jobs contributed to increases in this area.

Figure 1: Educational Attainment By Region

Source: US Census Bureau, American Community Survey. 2005-2009.

Interactive Map: Use zoom and pan to customize view, click on counties to highlight numbers in table. Click in table to highlight map entity.


Census data show regional disparities in educational attainment

Friday, January 7th, 2011

We live in the Silicon Forest, but the landscape of educational attainment in the Portland region varies greatly from east to west and north to south.

Consider Orenco Station, a transit-oriented development midway between downtown Beaverton and downtown Hillsboro. According to newly released 2005-2009 American Community Survey (ACS) estimates from the U.S. Census Bureau, about 39 percent of residents of the census tract that includes Orenco Station had at least a bachelor’s degree. Not bad — when you consider that just 27.5 percent of the U.S. population and 32.9 percent of the metropolitan area had a bachelor’s or better — but this corner of Washington County is Intel Corp. country, after all.

So where are the metroscape’s best and brightest? Go east of Hillsboro, but not too far.

Census tracts with the highest educational attainment — where upward of 75 percent of residents age 25 and older had a bachelor’s degree or higher — were exclusively on the City of Portland’s west side. This belt includes the West Hills neighborhoods, stretching from Forest Park to Hillsdale, as well as the southern edge of downtown near Riverplace/South Auditorium, and the Northwest District, west of NW 23rd Avenue.

Other census tracts with relatively high educational attainment — where 65 to 75 percent of residents had a bachelor’s degree or higher — were found in Southwest and Northwest Portland, including the Pearl District. Similar percentages were found amid the Raleigh Hills/West Slope area of Washington County, Lake Oswego, and several Portland neighborhoods within one-to-three miles east of the Willamette River.

In Clark County, census tracts with the highest educational attainment were east of Interstate 205 in Fishers Landing and Camas. Between 50 and 55 percent of residents here had a bachelor’s or better, according to ACS population and housing data collected between Jan. 1, 2005, and Dec. 31, 2009. Keep in mind that these survey data are estimates and carry margins of error (MOEs) that vary by census tract, with most MOEs within the range of 4 to 8 percent.

Washington County was a land of sharp contrasts. In the tract south of the Max line that passes Orenco Station in Hillsboro, just 11.9 percent of residents had a bachelor’s degree or higher. North of Orenco, the percentage increased to 51.7. Head a few miles west of Hillsboro to Forest Grove, and the number dipped to 10.2 percent.

Clickable Map of Census Tracts

Source: US Census Bureau, American Community Survey. 2005-2009.

The census data also show major change over time in some tracts.

Several census tracts with the largest increases of educational attainment are in North Portland, including Central St. Johns, where the share of residents with a bachelor’s degree or higher increased from 5 percent in 1990, to 15 percent in 2000, to 36 percent within the five-year ACS period. In four contiguous tracts along I-5 and the Interstate Avenue MAX line in the Overlook, Arbor Lodge and Kenton neighborhoods, the population with a bachelor’s degree or higher did not exceed 13 percent in 1990 and 19 percent in 2000. But according to 2005-2009 ACS estimates, the ranks of the college-educated living within this area is now about 40 percent.

Though not as dramatic as the growth in North Portland, several census tracts in Southeast Portland — areas between 39th and 82nd Avenues that once had relatively low levels of educational attainment — have recently made significant gains. Amid the Mt. Scott-Arleta, Foster-Powell, and Creston-Kenilworth neighborhood tracts, between 8 and 12 percent of residents age 25 and older had a bachelor’s degree or higher in 1990. The figure surpassed 30 percent during the ACS period.

Large increases in educational attainment also occurred amid census tracts that include Portland’s Pearl District and Vancouver’s Esther Short Park. Both of these areas have benefited from high-density residential development since the 2000 census.

Most census tracts with the lowest levels of educational attainment — where the share of residents age 25 and older with a bachelor’s degree or higher was 12 percent or less — were clustered in four distinct areas: a crescent-shaped area in outer Southeast Portland, including portions of Portland’s Brentwood-Darlington, Lents and Powellhurst-Gilbert neighborhoods, as well as Clackamas County’s unincorporated Southgate community; a roughly four-square-mile-area east of 162nd Avenue that encompasses Gresham’s Rockwood and North Gresham neighborhoods and portions of the Centennial neighborhoods along the Portland-Gresham border; the Central Vancouver neighborhoods of Harney Heights and Bagley Downs; and portions of East Vancouver and Orchards near Fourth Plain Road east of I-205. The share of residents in each of these areas with a bachelor degree or higher has changed very little since the 1990 and 2000 censuses.

Other census tracts with similarly low educational attainment — where the share of residents age 25 and older with a bachelor’s degree or higher was 12 percent or less — include portions of Battle Ground (Clark County), Cornelius and Hillsboro (Washington County), St. Helens and Goble (Columbia County), Molalla (Clackamas County), Willamina/Sheridan (Yamhill County), Wood Village (Multnomah County), and in a downtown Portland census tract where a majority of “residents” are inmates of the Multnomah County Detention Center.

Educational attainment correlates with income, and it’s interesting to view the relationships between educational attainment and poverty. To view the latest census data on poverty rates for the region, refer to the related article here.


New Census Data Show Portland’s High-poverty Pockets

Tuesday, December 14th, 2010

Poverty is not only the province of Portland — Oregon’s largest city and cultural capital.

An estimated 30 percent or more of the population lives at or below the federal poverty level in 20 metropolitan Portland census tracts, including some amid outlying suburbs, according to recently published U.S. Census Bureau data.

Several of the tracts are clustered in downtown Portland, as well as North and Northeast Portland neighborhoods with comparatively high minority populations. Perhaps less predictably, the cities of Forest Grove and McMinnville, as well as North Portland’s University Park neighborhood, include tracts with similarly high poverty rates. These tracts include concentrations of college students, who typically have low incomes.

The American Community Survey (ACS) population and housing data were collected by the U.S. Census Bureau between Jan. 1, 2005, and Dec. 31, 2009. The estimated poverty rate for the Portland metro area — which includes Washington, Multnomah, Yamhill, Clackamas and Columbia counties in Oregon and Clark and Skamania counties in Washington — was 11.7 percent, with a margin of error of plus or minus 0.3 percent. For these 20 high-poverty tracts, the margins of error ranged from 5 to 15 percentage points.

The federal poverty level for a family of four is income of $22,050 annually for all states, except Alaska and Hawaii, according to U.S. Department of Health and Human Services guidelines. The federal poverty rate for an individual is $10,830 annually.

Tracts 33.01 and 34.01, which overlay parts of Portland’s Humboldt and King neighborhoods, marked a notable concentration of poverty. More than a third of individuals within these tracts lived at or below the poverty line. Non-whites constituted about half of the population, including persons identifying as African-American, who represented about one third of the population of each tract; roughly half of the households in each tract were renters.

Tract 76, which is part of Northeast Portland’s Cully neighborhood, was another notable poverty pocket. More than 38 percent of individuals here lived at or below the federal poverty level. Nearly half of the tract’s residents were non-white; about 40 percent of the tract’s residents were renters. The data underscore that poverty is not just an urban problem. Indeed, more than a third of individuals lived at or below the poverty line in four census tracts clustered around Portland’s eastern border with Gresham. These tracts also had a comparatively high percentage of renters.

Census tract 40.02 in North Portland’s University Park neighborhood, which includes the University of Portland, also had a high poverty rate compared to other parts of the metropolitan area. Nearly 34 percent of individuals lived at or below the federal poverty level. The tract had slightly higher shares of white residents and homeowners than the metro area overall, but about 41 percent of its residents were college students.

The outlying suburbs of McMinnville and Forest Grove, which include higher-education institutions, also contained census tracts with comparatively high poverty rates. Nearly 42 percent of individuals in Yamhill County tract 308.02, which includes McMinnville’s Linfield College, lived at or below the poverty line. Thirty-five percent of the tract’s residents were students.

In Washington County’s census tract 332, the home of Pacific University in Forest Grove, more than 32 percent of individuals lived at or below the poverty line. The tract is notable for its 31 percent Latino population share and more than 1,000 college students, 17 percent of all residents. Seventy-two percent of households are renters.

Clickable Map of Census Tracts

Source: US Census Bureau, American Community Survey. 2005-2009.


Population Characteristics within the Portland-Vancouver MSA

Tuesday, May 18th, 2010

Figure 1. Map of Portland MSA PUMAs and Cities

Source: US Census Bureau, American Community Survey.

Within the Portland region, certain population characteristics such as age, race, ethnicity, education, income, and language vary from area to area. Broad region and city level statistics do not capture these differences, and because the Census occurs only every 10 years, the data we do have at smaller geographies quickly becomes outdated.

In this article, we will explore population characteristics in different parts of the Portland MSA using Census Public Use Microsample (PUMS) data from 2005-2007. For the spatial component, we will use a Census-defined small area geography called Public Use Microsample Area (PUMA), designed to follow existing county boundaries and contain around 100,000 people.

We will sometimes focus on a couple of example PUMAs to show the interesting differences within the region. See Table 1 for a description of each PUMA, and Figures 1 and 2 for a map of the PUMAs.

Highlights

  • High rates of fertility in certain areas of the region have led to a natural increase in population and a lower median age. Consequently, there are stark differences in age structures between different parts of the region.
  • Portland has a larger proportion of the population between the ages of 25 and 59 than the United States as a whole, but a lower percentage of the population over 70 years old.
  • Household composition varies throughout the Portland MSA, with urban neighborhoods having lower household sizes and suburban areas having higher household sizes.
  • Over 50% of the total black population is concentrated in just three PUMAs, whereas the Hispanic population is more dispersed.
  • In all Portland MSA PUMAs, at least 10% of households speak a language other than English in the home. In some PUMAs, over 25% of the population speaks a language other than English at home.
  • Varying age structures within the region may drive some income distribution variation: younger college-educated people who have not yet entered their prime earning years might contribute to lower incomes in some parts of Portland.
  • However, some PUMAs have a lower percentage of the population with Bachelor’s degrees, which may contribute to lower incomes in these PUMAs.

Figure 2. Map of Portland MSA PUMAs

Source: US Census Bureau, American Community Survey.

Table 1. Table of PUMAs with Descriptions

PUMA Description
1301 North/Northeast Portland
1302 Outer East Portland
1303 Southeast Portland
1304 West Portland
1305 Central East Portland
1306 Gresham/East Multnomah County
1307 East Clackamas County
1308 Northwest Clackamas County
1309 West Clackamas County
1310 Tigard/Tualatin/Wilsonville
1311 Hillsboro/Western Washington County
1312 Aloha/West Beaverton
1313 East and Central Beaverton
2101 North Clark County
2102 East Clark County
2200 Vancouver

1. Age Composition

In the Portland MSA, fertility and migration have been the main factors contributing to the regional differences in age structure. High rates of fertility in certain areas of the region have led to a natural increase in population and a lower median age. Mortality is generally low and stable in the Portland MSA and contributes little to the differences between age pyramids. The age structure of a population affects demand for schools, health care, recreation, entertainment, and shopping. It also affects taxable income and the supply of labor.

In contrast to the influence of fertility on age composition, migration is more complex because most migrants move during key life transitions such as in their twenties and early thirties or after retirement. Young migrants contribute to an overall younger age structure in the short term, but without new migrants, in the long term they age with the rest of the population and contribute to a higher median age.

Figure 3 and Table 2 display the age composition of the United States and the Portland MSA. Portland has a larger proportion of the population between the ages of 25 and 59 than the United States as a whole, but a lower percentage of the population over 70 years old. Since the Portland MSA has not experienced high levels of retiree in-migration, older migrants have not had a large effect on the age structure in this region.

Figure 3. Age of Population in the Portland MSA and USA


Source: US Census Bureau, American Community Survey 2005-2007.

Table 2. Age of Population in the Portland MSA and USA

United States Portland MSA
0-4 6.9% 6.7%
5-9 6.6% 6.9%
10-14 6.9% 6.7%
15-19 3.7% 3.4%
20-24 3.6% 3.1%
25-29 6.8% 7.5%
30-34 6.6% 7.4%
35-39 7.1% 7.9%
40-44 7.5% 7.4%
45-49 7.6% 7.8%
50-54 6.9% 7.5%
55-59 6.0% 6.7%
60-64 2.2% 2.2%
65-69 1.6% 1.5%
70-74 2.9% 2.3%
75-79 2.5% 1.9%
80-84 1.9% 1.5%
85+ 1.7% 1.6%

Source: US Census Bureau, American Community Survey 2005-2007.

There are significant variations in age structures within the Portland MSA. This variation is due to different parts of the Portland MSA having relatively large concentrations of certain age groups. Figures 5-7 display age pyramids for three PUMAs with contrasting age structures in the Portland MSA.

  • West Portland (1304) has many older adults, because it is a wealthier and older population, probably with a lot of empty nesters and older singles. (Figure 4)
  • Southeast Portland (1305) has many young adults and young children living in more established neighborhoods. (Figure 5)
  • Tigard/Tualatin/Wilsonville (1310) has many young and middle-aged families with children living in suburban neighborhoods because of the bulges at parent and child ages. (Figure 6)

Figure 4. Age Pyramid for West Portland (1304) (click to enlarge)

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Figure 6. Age Pyramid for Tigard/Tualatin/Wilsonville (1310) (click to enlarge)

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Figure 5. Age Pyramid for Southeast Portland (1305) (click to enlarge)

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Figure 7. Median Age by PUMA in the Portland MSA (click to enlarge)

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

This data can have important policy implications. For example, in Hillsboro/Western Washington County (1311), school-aged children represent 28% of the total population, so school services may be very important to the local population. School services may be less important in West Portland (1304) or Southeast Portland (1305), where only 17% and 19% of the population respectively is school-aged.

The median age for the Portland MSA is 38, compared to a median age of 41 for Oregon. We can also see that no single area in the Portland MSA predominates as a destination for people over 65. Median age can shift either due to the presence of older people or due to the absence of younger people. Figure 7 shows the distribution of median age around the region. Table 3 in the appendix provides detailed information about the median age and the percent in each age category in the Portland MSA and in each PUMA.

2. Household Composition

Household composition varies throughout the Portland MSA, with urban neighborhoods having lower household sizes and suburban areas having higher household sizes. The average household size is higher in areas with lots of large families and lower in areas with smaller families and more single people. Smaller households are typically comprised of people in their twenties or older than their forties when the children have left. Additionally, more educated people tend to have fewer children and smaller households overall.

Household composition has huge ramifications for the region as a whole. Households provide the setting for the raising of new members of society, their socialization, psychological development, and education. They also often function as the basic economic unit, in that households typically pool expenses and resources. In areas with small household sizes, more housing units are required to house the same population.

As an example of the difference in household composition between PUMAs, consider that West Portland (1304) has an older population with fewer children. In this PUMA, about 43% of the households have only one person per household and average household size is 1.85 people. In suburban Hillsboro/Western Washington County (1311), the number of single-person households is only 21% and the average household size is 2.67 people. Figure 8 shows the distribution of household size in the region by PUMA. Table 4 in the appendix shows the percentage of households in various sizes.

Figure 8. Persons per Household (click to enlarge)

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

3. Race and Hispanic origin

Race and ethnicity also varies somewhat throughout the Portland MSA. Table 4 shows race by PUMA. Figure 9 shows the distribution of the black population, figure 10 shows the distribution of the Asian population, and figure 11 shows the regional distribution of the Hispanic population. Tables 5-7 in the appendix gives detailed information about population distribution of different racial and ethnic groups in the Portland MSA.

The following are findings from the demographic analysis of PUMS data:

  • Over 50% of the total Portland MSA black population is concentrated in just three PUMAs – North/Northeast Portland (1301), Outer East Portland (1302), and Central East Portland (1305).
  • The Hispanic/Latino population is distributed throughout the Portland MSA, with especially high concentrations North/Northeast Portland (1301), Outer East Portland (1302), Gresham/East Multnomah County (1306), Tigard/Tualatin/Wilsonville (1310), Hillsboro/Western Washington County (1311), and East and Central Beaverton (1313).
  • Aloha/West Beaverton (1312) and Outer East Portland (1302) both have a large Asian population.
    • In particular, Aloha/West Beaverton (1312) has a large Korean population.
    • Outer East Portland (1302) has a large Vietnamese and Chinese population.
    • North/Northeast Portland (1301) has a relatively large population of people claiming two or more races.

Figure 9. Percent Black by PUMA (click to enlarge)

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Figure 10. Percent Hispanic by PUMA (click to enlarge)

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Figure 11. Percent Asian by PUMA (click to enlarge)

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

4. Language

In all Portland MSA PUMAs, at least 10% of households speak a language other than English in the home. Hillsboro/Western Washington (1311) and Aloha/Outer East Beaverton have the highest number of non-English speaking households, 21.5% and 25.6% respectively. East Clackamas County has just 9.3% of households speak a language other than English. In Outer East Portland (1302) and Aloha/West Beaverton (1312), there are many Asian language speakers, and many Spanish speakers in the East Portland PUMAs as well as outer Clackamas and Washington counties. Table 8 in the appendix provides detailed data on household language by PUMA.

Figure 12. Percent of Non-English Language Households in the Portland MSA, by Language and PUMA

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

5. Income

Income is distributed unevenly among PUMAs in the Portland MSA. Figure 13 shows median household income (MHI) by PUMA. West Clackamas County (1309) has the highest median household income in the Portland MSA, $73,218. Southeast Portland (1305) and Outer East Portland (1309) have lower median household income of $42,844 and $43,500 respectively. Different age structures in different PUMAs may drive some income distribution variation: younger college-educated people who have not yet entered their prime earning years might contribute to lower incomes in North/Northeast Portland, Southeast Portland, and Outer East Portland. Table 9 in the appendix provides median household income data for each PUMA.

Figure 13. Median Household Income by PUMA (click to enlarge)

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

6. Education

Education varies within the Portland MSA, since some PUMAs have over double the number of bachelor’s degrees as a percent of the population. The percentage of Portland MSA residents with a bachelor’s degree is 32%. West Portland (1304) stands out as a particularly highly educated PUMA, at almost twice the regional ratio of bachelor’s degrees. Even though median household incomes are low, Central East Portland (1305) has high education rates, which may be due to the influx of educated young adults who have not yet advanced far in their careers. Not surprisingly, wealthier areas of Clackamas and Washington Counties (1309, 1312, 1313) have high educational levels as well. Figure 14 shows the percent of the population with at least a bachelor’s degree in the Portland MSA by PUMA. Table 10 in the appendix gives educational attainment levels by PUMA.

Figure 14. Percent BA+ by PUMA (click to enlarge)

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Conclusion

This article aimed to describe basic demographic features that make living in certain parts of the Portland MSA unique, but which may not be apparent unless we zoom into the smaller geographies. Furthermore, more nuanced knowledge of regional demographics is crucial to efforts to improve livability in the region, from addressing spatial inequalities in income and education, to planning for age- and lifestyle-specific services like schools or retirement centers, and for understanding the impact of economic development on employment, population, and housing.

Data Sources

For subregional analysis, we use the Public Use Microdata Sample (PUMS) releases of the American Community Survey (ACS), a subset of individual and household survey responses collected during the administration of the ACS. Because it shows proportions of large populations, it should be accurate.

We base our geographical analysis on Public Use Microsample Areas (PUMA) geographies, which are census-designated areas that each contain a population of about 100,000 people and do not overlap. PUMAs give more fine-grained information on population characteristics than city or county level geographies.

Glossary

Age Structure. “Age structure” refers to how the population is distributed over the various ages. In a population with an older age structure, there might be more 65 to 70 year olds than there are 5 to 10 year olds; this structure would be found in areas with high numbers of retirees. If a region is experiencing high fertility it will usually have a younger age structure, with larger numbers of 5 to 10 year olds than 65 to 70 year olds. Population pyramids provide a visualization of age structure.

PUMA. A PUMA (Public Use Microdata Area) is a region designed to contain about 100,000 people at the 2000 Census, and is the level of geography specified in the one and three year pooled PUMS data. The Census Bureau withholds finer grained detail regarding location in order to protect the confidentiality of the survey respondents; otherwise, an analyst might be able to learn private details about a person and find that person through the PUMS data.

PUMS Data. PUMS (Public Use Microdata Sample) data are a copy of about half of the individual responses to the ACS questionnaire, along with some other variables added by the Census Bureau. These data allow us to create custom analyses, rather than rely on tabulations made by the Census Bureau.

Rate. A “rate” is a measure of how often an even happens for each unit of “exposure.” Exposure, in turn, refers to how many people are alive for a year. In order to calculate the mortality rate in 2006, for example, we would divide the number of deaths in the year by the number of people alive in the same year. We can calculate rates for many different events, including migration, fertility, marriage, etc.

Acknowledgments

We would like to thank Vivian Siu, Nancy Hales, Charles Rynerson, Sarah Iannarone, Emily Renfrow, and Lisa Yarbrough for their many helpful comments. Any errors are the responsibility of the authors.

References

Hough, George C. 2006. “An evaluation of the American Community Survey: results from the Oregon test site”. Population research and policy review (0167-5923), 25 (3), p. 257.

Institute of Metropolitan Studies, Portland State University. 2007. “The Metropolitan Briefing Book.”

Office of Economic Analysis, Department of Administrative Services, State of Oregon. 2009. “Oregon Economic and Revenue Forecast.”

Oregon Department of Health Services. 2006. “Oregon Vital Statistics Annual Report.” http://www.dhs.state.or.us/dhs/ph/chs/data/annrep.shtml (accessed October 1, 2009).

Oregon Employment Department. 2008. “Oregon Labor Market Information Service (OLMIS).” http://www.qualityinfo.org/olmisj/OlmisZine (accessed October 1, 2009).

Population Research Center, Portland State University. 2008. “Oregon Population Report.” http://www.pdx.edu/sites/www.pdx.edu.prc/files/media_assets/PopRpt08c2.pdf (accessed October 1, 2009).

US Census Bureau. 2008. “American Community Survey.” http://www.census.gov/acs/www/ (accessed October 1, 2009).

Warren, Robert. 2009. “Provisional unpublished estimates provided by Robert Warren, July 2009.”

Washington Office of Financial Management. 2009. “April 1, 2009 Population Estimates.”

Appendix

Table 3. Percentage Population by Age and PUMA in the Portland-Vancouver MSA (Jump back)

PUMA Name 0-6 7-18 19-25 26-35 36-50 51-65 66+ Median
Age
1301 North/Northeast Portland 10.5% 13.0% 9.6% 18.6% 24.6% 15.7% 8.0% 36
1302 Outer East Portland 11.1% 17.2% 7.6% 13.2% 22.6% 16.5% 11.9% 39
1303 Southeast Portland 9.8% 13.7% 9.2% 17.3% 24.0% 17.7% 8.3% 36
1304 West Portland 5.7% 11.1% 10.2% 14.8% 24.0% 23.4% 11.0% 42
1305 Central East Portland 8.9% 10.8% 6.6% 19.8% 25.3% 18.4% 10.2% 38
1306 Gresham/East Multnomah County 10.8% 18.9% 7.9% 14.4% 21.0% 17.6% 9.4% 36
1307 East Clackamas County 8.9% 16.4% 7.1% 11.7% 23.3% 22.8% 9.9% 42
1308 Northwest Clackamas County 8.4% 15.9% 10.1% 13.8% 21.9% 18.7% 11.2% 41
1309 West Clackamas County 8.4% 17.0% 8.3% 11.4% 22.9% 21.5% 10.6% 41
1310 Tigard/Tualatin/Wilsonville 10.2% 15.1% 8.3% 15.8% 23.1% 17.1% 10.5% 38
1311 Hillsboro/Western Washington County 11.2% 16.4% 9.3% 16.9% 23.0% 15.3% 8.0% 35
1312 Aloha/West Beaverton 11.4% 18.9% 7.6% 15.7% 25.3% 14.8% 6.4% 35
1313 East and Central Beaverton 8.2% 15.3% 8.1% 16.3% 21.4% 20.5% 10.1% 39
2101 North Clark County 10.2% 17.9% 7.8% 15.6% 21.5% 17.4% 9.6% 37
2102 East Clark County 9.9% 20.7% 8.5% 13.0% 23.9% 16.3% 7.6% 37
2200 Vancouver 9.8% 15.3% 10.1% 16.3% 20.7% 16.9% 11.0% 37
Portland MSA 9.7% 16.0% 8.6% 15.2% 23.0% 18.0% 9.6% 38

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Table 4. Percentage Households by Size and PUMA in the Portland-Vancouver MSA (Jump back)

PUMA Name Vacant Housing Unit 1 Person 2 People 3 People 4 People 5+ People Average Household Size
1301 North/Northeast Portland 6.4% 30.0% 34.0% 14.5% 9.1% 6.1% 2.25
1302 Outer East Portland 6.5% 28.4% 27.4% 16.6% 10.7% 10.4% 2.49
1303 Southeast Portland 5.4% 32.2% 32.0% 12.9% 11.0% 6.6% 2.28
1304 West Portland 7.6% 43.7% 29.2% 9.8% 6.9% 2.8% 1.85
1305 Central East Portland 6.7% 38.5% 31.0% 12.6% 8.1% 3.1% 2.02
1306 Gresham/East Multnomah County 6.1% 23.3% 32.4% 14.9% 12.8% 10.6% 2.61
1307 East Clackamas County 8.1% 17.6% 37.0% 14.6% 14.0% 8.6% 2.60
1308 Northwest Clackamas County 6.2% 27.0% 30.7% 16.7% 12.5% 6.9% 2.45
1309 West Clackamas County 6.5% 22.7% 34.4% 14.5% 13.5% 8.5% 2.52
1310 Tigard/Tualatin/Wilsonville 4.3% 26.2% 33.8% 13.8% 14.5% 7.4% 2.48
1311 Hillsboro/Western Washington County 6.1% 20.9% 33.1% 15.3% 13.7% 11.0% 2.67
1312 Aloha/West Beaverton 6.3% 21.6% 28.4% 16.2% 16.2% 11.4% 2.65
1313 East and Central Beaverton 7.0% 30.5% 32.1% 12.4% 11.7% 6.2% 2.28
2101 North Clark County 4.8% 19.7% 33.7% 16.7% 14.8% 10.4% 2.67
2102 East Clark County 5.3% 14.4% 32.3% 16.5% 17.9% 13.6% 2.96
2200 Vancouver 6.0% 30.8% 31.1% 13.9% 10.9% 7.3% 2.37
ALL PDX 6.2% 27.1% 31.9% 14.4% 12.3% 8.1% 2.44

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Table 5. Percentage of Population by Race and PUMA in the Portland-Vancouver MSA (Jump back)

PUMA Name White Black American Indian Asian Pacific Islander Other race 2+ races
1301 North/Northeast Portland 70.5% 14.8% 1.6% 3.1% 0.4% 3.4% 6.1%
1302 Outer East Portland 70.8% 8.4% 3.2% 9.8% 0.5% 3.4% 4.0%
1303 Southeast Portland 81.8% 2.2% 1.0% 7.5% 0.8% 2.7% 3.9%
1304 West Portland 88.6% 2.4% 0.6% 5.0% 0.0% 1.6% 1.9%
1305 Central East Portland 83.2% 5.4% 0.4% 5.7% 0.3% 1.8% 3.1%
1306 Gresham/East Multnomah County 80.8% 3.9% 3.3% 5.6% 0.3% 3.5% 2.6%
1307 East Clackamas County 92.3% 0.6% 0.3% 1.2% 0.1% 1.8% 3.7%
1308 Northwest Clackamas County 89.9% 0.8% 0.6% 3.8% 0.1% 1.3% 3.6%
1309 West Clackamas County 88.9% 1.2% 1.0% 4.4% 0.1% 1.4% 3.0%
1310 Tigard/Tualatin/Wilsonville 87.2% 1.0% 0.6% 4.3% 0.5% 3.7% 2.7%
1311 Hillsboro/Western Washington County 79.2% 1.4% 2.9% 5.8% 0.2% 7.7% 2.8%
1312 Aloha/West Beaverton 73.9% 2.1% 0.7% 15.0% 0.5% 2.8% 4.9%
1313 East and Central Beaverton 80.5% 1.5% 1.6% 7.2% 0.3% 5.5% 3.4%
2101 North Clark County 87.5% 1.4% 0.5% 4.8% 0.6% 2.3% 3.0%
2102 East Clark County 92.9% 0.7% 0.4% 2.4% 0.3% 1.2% 2.1%
2200 Vancouver 81.5% 2.7% 1.2% 4.8% 0.3% 4.1% 5.5%
ALL PDX 83.2% 2.9% 1.3% 5.7% 0.3% 3.1% 3.5%

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Table 6. Percentage Population by “Hispanic” and PUMA in the Portland-Vancouver MSA (Jump back)

PUMA Name Non-Hispanic Hispanic
1301 North/Northeast Portland 85.4% 14.6%
1302 Outer East Portland 88.4% 11.6%
1303 Southeast Portland 91.1% 8.9%
1304 West Portland 96.3% 3.7%
1305 Central East Portland 94.5% 5.5%
1306 Gresham/East Multnomah County 84.1% 15.9%
1307 East Clackamas County 95.0% 5.0%
1308 Northwest Clackamas County 91.9% 8.1%
1309 West Clackamas County 93.5% 6.5%
1310 Tigard/Tualatin/Wilsonville 87.9% 12.1%
1311 Hillsboro/Western Washington County 79.9% 20.1%
1312 Aloha/West Beaverton 90.9% 9.1%
1313 East and Central Beaverton 87.9% 12.1%
2101 North Clark County 95.0% 5.0%
2102 East Clark County 96.7% 3.3%
2200 Vancouver 90.8% 9.2%
ALL PDX 90.4% 9.7%

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Table 7. Distribution of Racial Populations in the Portland-Vancouver MSA (Jump back)

PUMA Name White Black Native American Asian Pacific Islander Other Race Two or More Races
1301 North/Northeast Portland 4.2% 25.1% 6.2% 2.7% 6.2% 5.4% 8.7%
1302 Outer East Portland 4.8% 16.1% 14.1% 9.7% 8.5% 6.1% 6.5%
1303 Southeast Portland 5.1% 4.0% 4.2% 6.9% 12.9% 4.5% 5.8%
1304 West Portland 6.1% 4.7% 2.8% 5.0% 0.3% 2.9% 3.1%
1305 Central East Portland 5.4% 10.0% 1.6% 5.5% 5.5% 3.1% 4.8%
1306 Gresham/East Multnomah County 6.6% 8.9% 17.7% 6.7% 6.6% 7.7% 4.9%
1307 East Clackamas County 6.3% 1.2% 1.3% 1.2% 2.1% 3.3% 6.0%
1308 Northwest Clackamas County 7.2% 1.9% 3.3% 4.5% 1.1% 2.7% 6.8%
1309 West Clackamas County 6.7% 2.5% 4.9% 4.8% 2.7% 2.9% 5.4%
1310 Tigard/Tualatin/Wilsonville 7.0% 2.3% 3.1% 5.0% 10.3% 7.9% 5.1%
1311 Hillsboro/Western Washington County 7.9% 3.9% 18.5% 8.4% 5.6% 20.6% 6.7%
1312 Aloha/West Beaverton 6.0% 4.9% 3.7% 18.0% 10.4% 6.1% 9.6%
1313 East and Central Beaverton 5.2% 2.8% 6.7% 6.8% 4.9% 9.5% 5.2%
2101 North Clark County 6.3% 2.9% 2.4% 5.1% 10.1% 4.4% 5.1%
2102 East Clark County 7.5% 1.6% 2.2% 2.8% 5.2% 2.6% 4.0%
2200 Vancouver 7.8% 7.3% 7.4% 6.8% 7.6% 10.4% 12.5%
SUM 100% 100% 100% 100% 100% 100% 100%

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Table 8. Percent of Persons Speaking Various Languages in the Portland-Vancouver MSA (Jump back)

PUMA Name English Spanish Other
Indo-
European
language
Asian or
Pacific
Islander
Other
1301 North/Northeast Portland 80.8% 11.7% 4.3% 1.9% 1.3%
1302 Outer East Portland 76.8% 8.8% 7.0% 7.0% 0.4%
1303 Southeast Portland 80.6% 7.1% 5.5% 5.9% 0.9%
1304 West Portland 85.5% 4.5% 5.4% 3.4% 1.1%
1305 Central East Portland 85.3% 4.5% 5.4% 3.6% 1.3%
1306 Gresham/East Multnomah County 80.7% 10.2% 4.0% 4.2% 1.0%
1307 East Clackamas County 90.7% 4.8% 3.1% 1.4% 0.1%
1308 Northwest Clackamas County 86.0% 6.7% 3.7% 3.2% 0.4%
1309 West Clackamas County 86.8% 5.5% 4.2% 3.3% 0.3%
1310 Tigard/Tualatin/Wilsonville 82.9% 8.8% 4.1% 3.3% 1.0%
1311 Hillsboro/Western Washington County 78.5% 14.6% 2.2% 4.4% 0.3%
1312 Aloha/West Beaverton 74.4% 6.5% 7.3% 10.6% 1.3%
1313 East and Central Beaverton 81.1% 8.3% 4.4% 5.7% 0.6%
2101 North Clark County 84.4% 4.4% 6.5% 4.2% 0.5%
2102 East Clark County 89.6% 2.6% 4.8% 2.4% 0.6%
2200 Vancouver 84.3% 6.4% 5.6% 3.4% 0.3%
All PDX 83.0% 7.3% 4.8% 4.2% 0.7%

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Table 9. Median Household Income by PUMA (Jump back)

PUMA Name Median Household Income
1301 North/Northeast Portland $46,825
1302 Outer East Portland $43,500
1303 Southeast Portland $42,844
1304 West Portland $58,886
1305 Central East Portland $49,613
1306 Gresham/East Multnomah County $48,412
1307 East Clackamas County $62,669
1308 Northwest Clackamas County $53,791
1309 West Clackamas County $73,218
1310 Tigard/Tualatin/Wilsonville $65,494
1311 Hillsboro/Western Washington County $60,623
1312 Aloha/West Beaverton $66,442
1313 East and Central Beaverton $61,159
2101 North Clark County $61,100
2102 East Clark County $62,964
2200 Vancouver $46,790
All PDX $56,288

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Table 10. Percent Age 25+ with BA+ (Jump back)

PUMA Name Percent Age 25+ with BA+
1301 North/Northeast Portland 32.1%
1302 Outer East Portland 16.3%
1303 Southeast Portland 33.1%
1304 West Portland 60.4%
1305 Central East Portland 47.7%
1306 Gresham/East Multnomah County 19.3%
1307 East Clackamas County 20.6%
1308 Northwest Clackamas County 23.2%
1309 West Clackamas County 45.7%
1310 Tigard/Tualatin/Wilsonville 37.0%
1311 Hillsboro/Western Washington County 28.1%
1312 Aloha/West Beaverton 42.3%
1313 East and Central Beaverton 44.8%
2101 North Clark County 24.4%
2102 East Clark County 24.9%
2200 Vancouver 25.1%
All PDX 32.0%

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Population Dynamics of the Portland-Vancouver MSA

Wednesday, May 5th, 2010

This article offers a descriptive overview of population dynamics in the Portland-Vancouver Metropolitan Statistical Area (MSA). The MSA includes five of Oregon’s 36 counties–Clackamas, Columbia, Multnomah, Washington, and Yamhill, as well as Clark and Skamania counties in the state of Washington (see Figure 1).

The article describes current trends for population growth; the effect of births, deaths, and migration on population growth; and how the age, sex, and ethnic composition of the population are changing. We concentrate on describing population trends rather than speculating on the causes of population change or making population predictions. An understanding of population dynamics can inform policy-making, and we hope we can provide a solid basis of understanding for decision-makers and community members in the Portland region.

Highlights

  • The Portland-Vancouver MSA has grown at least as fast as the United States since 1930, sometimes growing at double the speed of the nation.
  • During the 1990s, Clark and Washington counties experienced the greatest population increase among the region’s counties, at 45% and 43% respectively—considerably greater than the MSA population growth of 23%. These two counties continued to outpace the rest of the Portland-Vancouver MSA from 2000 to 2008.
  • Domestic migration plays an important role in demographic change in the entire region. It has been a major driver of population growth in Clark, Clackamas, and Columbia counties.
  • By contrast, natural increase—the surplus of births of over deaths—has driven recent growth in Multnomah and Washington counties.
  • International migration plays a significant role in Multnomah and Washington counties. In Multnomah County, international migration offsets the net loss of residents who migrated to other counties in the United States.
  • Population levels are sensitive to fluctuations in the economy. When the economy falters in the Portland-Vancouver MSA, there is a decrease in in-migration and a shift to natural increase
  • The overall minority population in the Portland-Vancouver MSA grew by 40.7% between 2000 and 2008, more than seven times the percentage increase for the overall metropolitan region population growth (5.4%) during the same period.

1. Population Growth over Time

Metropolitan Portland-Vancouver has grown at least as fast as the United States since 1930, sometimes growing at double the fspeed of the nation. Since the 19figth century, Oregon, like much of the West Coast, has been a destination for migrants seeking economic opportunity and lifestyle amenities. The Portland region’s growth rates tend to follow the state of Oregon’s growth rates, partly because the region is home to a large share of the state population. Figure 2 compares the rate of growth of the Portland-Vancouver region, the state of Oregon, and the USA. Figure 3 present the decade-by-decade population individual counties within the Portland-Vancouver MSA since 1930. Table 1 in the appendix gives numerical detail by county.

Figure 2. Population Change in Portland-Vancouver MSA, Oregon, and the USA 1930-2008

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

Figure 3. Population in the Portland-Vancouver MSA by County

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

In the 1980s, the economic downturn affected the state of Oregon’s population, which grew at a slower pace over the decade (7.9%) than the population of the USA as a whole (10.4%). However, the Portland-Vancouver region’s population still grew faster than the overall US population during the 1980s.

Between 1990 and 2000, Oregon’s population grew by 20% and the Portland-Vancouver region’s population grew by 27%, which greatly outpaced US population growth of 13% over the same decade. During the 1990s, Clark and Washington counties experienced the greatest population increase among the regional counties, at 45% and 43% respectively, outpacing the region dramatically.

Clark and Washington counties continued to outpace the rest of the Portland-Vancouver region from 2000 to 2008. Since 2000, population growth has slowed in all of metropolitan Portland-Vancouver to 1.6% per year from 2000 to 2008, in contrast to the annualized rate of 2.1% per year from 1990 to 2000. One of the most important drivers of migration for adults is job availability. Thus, given the current economic climate in Oregon, population growth is not likely to increase before the next census in 2010. Population will likely continue to grow, but at a lower rate per year. Official State of Oregon population forecasts reflect the new assumptions about a decline in migration due to lower employment.

The share of population growth in the Portland-Vancouver MSA has shifted to different counties over the course of the region’s history. The population within the Portland-Vancouver MSA has spread from the urban core. Figure 4 shows each county’s proportion of the total Portland-Vancouver regional population. Suburban counties within the Portland-Vancouver MSA have taken a greater proportion of the entire population. Table 2 in the appendix gives more detail about population growth rates by county.

Figure 4. Proportion of Population in the Portland-Vancouver MSA by County, 1930-2008

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

A large percentage of the Portland-Vancouver MSA’s population has gradually shifted from Multnomah County to the outlying counties in the past 80 years. In 2008, only about 33% of the population lived in Multnomah County, down from 59% in 1960. Washington County has experienced dramatic growth over the past few decades, growing from 10% of the region’s population in 1960 to 24% of the population of the Portland-Vancouver MSA in 2008.

2. Components of Population Growth

Population growth includes two components: natural increase (births minus deaths), and net migration (in-migration minus out-migration). In Oregon and the Portland-Vancouver region, migration has been at least as important as natural increase through births since the region’s settlement in the 19th century. However, natural increase can become more important than migration whenever the economy experiences a downturn, since fewer people are inclined to migrate to a destination with high unemployment. Oregon’s economy faltered in the 1980s, leading to a corresponding decrease in total growth and a shift to natural increase. In the 1990s, the Portland region experienced an economic boom, attracting new residents through migration. In the 2000s, a middle ground emerged between these two extremes as the economy slowed in the early part of the decade and then subsequently recovered.

Mortality and life expectancy levels have remained steady in the metropolitan Portland-Vancouver area for the past two decades. The crude death rate, the number of deaths per 1,000 residents for a single year, has remained at about 8 per 1,000 people since 1980. In 2005, Life expectancy at birth in Oregon was 75.7 years for men and 80.2 years for women, which is slightly higher than the U.S. average.

Fertility in the Portland-Vancouver MSA is relatively constant, though less stable than mortality. In 2006, Oregon had a total fertility rate (TFR) of 1.98 children per woman over a lifetime—a little bit lower than the “replacement rate” of about 2.1. If women have children at current rates in the long term, the population will decrease slowly unless it is augmented by in-migration. In the long term, only regions with low in-migration rates feel the effects of increases in the total fertility rate over the long term. The crude birth rate varies by county partly due to varying social characteristics such as education levels and age structure.

Table 4 uses these data to calculate demographic rates (in terms of events per 1000 persons per year). As an example of natural increase and migration dynamics, consider Clark and Washington counties, both counties with high population growth rates. In Clark County, migration greatly effects population change, since 17.9 people move in each year for every 1000 people already living in Clark County, versus 8.9 moving into Washington County. In Washington County, natural increase contributes more to population growth than migration, with 10.4 net births per 1000 in Washington County compared with 7.8 net births per 1000 in Clark County. The data show that more established communities have a higher proportion of natural increase because they typically have less room for new housing and new migrants. Figure 4 compares the crude rate of natural increase and the crude migration rate by county. Table 3 in the appendix gives more detail about crude births, deaths, natural increase, and migration for each county between 2000-2008. Table 4 in the appendix provides numerical detail for the factors driving migration by county between 2000 and 2008.

Figure 5. Crude Rates of Natural Increase and Migration in Portland-Vancouver MSA by County, per 1000 People, 2000-2008

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

Although migration plays an important role throughout the metropolitan region, its importance varies by county. Natural increase drives growth in Multnomah and Washington counties whereas migration primarily drives growth in Clark, Clackamas, and Columbia counties. Migration is more complex than natural increase, because it is driven by political, cultural, and economic factors. Typically, rates of natural increase and their components change slowly, while migration rates are more volatile. Figure 6 shows the percent of population growth between 2000 and 2008 from natural increase and net migration.

Figure 6: Percent of Population Growth Due to Natural Increase vs. Net Migration by County, 2000 to 2008

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

The percent of population growth driven by net migration has fluctuated dramatically in the Portland-Vancouver MSA and Oregon as a whole since 1980, as shown in Figure 7. In the appendix, Tables 5 and 6 provide the detailed population dynamic data for the decade from 1990 to 1999, and Tables 7 and 8 provide data for the decade from 1980 to 1989.

Figure 7. Natural Increase vs. Net Migration in Portland-Vancouver MSA, Oregon, and Washington State, 1980-2008

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

3. Influence of International and Domestic Immigration

Some Portland-Vancouver counties have large numbers of people moving to the county from within the United States (“domestic migration”), while some counties have large numbers of people settling in the county after relocating from outside the USA (“international migration”). Multnomah County lost population due to domestic migration—people moving from Multnomah to other counties—while it gained international population. Washington County has large numbers of international migrants, while most of the people moving into Clackamas County were moving from somewhere in the USA. Table 9 in the appendix and Figure 8 summarize the migration dynamics in the seven-county region from 2000 to 2009.

Figure 8. International and Domestic Migration in the Portland-Vancouver MSA by County, 2000-2008

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data.

Foreign-born residents represent a significant portion of the Portland-Vancouver MSA’s population. As shown in Table 20, the 2005-2007 data from the ACS show that foreign-born residents represent about 13.6% of the population of the region, compared to 10.5% of the population of Oregon. Within Oregon, approximately 105,000 were unauthorized, with over 95% of the undocumented coming from Mexico and other Central and South American countries (Warren, 2009).

The majority of people living in the Portland-Vancouver MSA were not born in Oregon. Table 10 shows estimates of migration from various states and countries, at least for the PUMAs that are within the Portland-Vancouver region. For example, 40% of all the residents of the region were born in Oregon, while 11% were born in Washington State.). Notably, 1.2% of the region’s residents were born in Minnesota, nearly the same percentage as were born in New York, a much more populous state.

Table 10. Top 20 Places of Birth for Residents of the Portland-Vancouver MSA 2005-2007

Place of Birth Percent
All USA 86.39%
… OR 39.82%
… WA 10.82%
… CA 10.71%
… IL 1.56%
… NY 1.55%
… TX 1.51%
… ID 1.19%
… MN 1.16%
… MI 1.00%
… CO 0.94%
… All other USA and Territories 16.13%
All Foreign Born 13.62%
… Mexico 3.83%
… Vietnam 0.85%
… Korea 0.67%
… Ukraine 0.67%
… Canada 0.64%
… China 0.54%
… Philippines 0.50%
… India 0.46%
… Germany 0.44%
… Russia 0.39%
… All other non-USA 4.63%
Total 100% (86.39% + 13.62%)

Source: US Census Bureau, American Community Survey. 2005-2007 PUMS data

4. Effects of Employment on Population Change

Prolonged periods of high unemployment have driven regional population growth rates. Figure 10 shows unemployment in the USA, Oregon, and the Portland-Vancouver MSA. There are three spikes in unemployment—around 1982, 1993, and 2002. The years with highest unemployment correspond to the decade with the lowest population growth—the 1980s. The 1990s have the lowest unemployment overall, reflected in rapid population growth. Oregon, and especially the seven-county region, felt the effects of the dot-com bust in 2002 and 2003 more strongly than the 1991 recession. The moderate population growth from 2000 to 2008 reflects the recession of the early part of the decade. We can see a slight uptick in unemployment in 2008, and the unemployment for 2009 soars to 1983 levels, so we can expect there to be correspondingly much slower population growth in the next few years. However, the seven-county region remains a destination for many migrants for its many amenities, dampening the effect of the local economy on population change.

Figure 9. U.S., Oregon, and Metropolitan Portland-Vancouver Unemployment Rates

Source: State of Oregon, Oregon Employment Department.

5. Racial and Ethnic Composition of the Portland-Vancouver MSA

The metropolitan Portland-Vancouver area population has a less ethnically diverse population than many other major metropolitan areas in the United States. However, the minority population has increased in every county in the Portland-Vancouver MSA in the last 30 years. The overall minority population increased from 360,000 people in 2000 to 507,202 people in 2008, an increase of 40.7%. This figure includes Asian Americans, Hawaiians and Pacific Islanders, Hispanics, African Americans, American Indians, and persons reporting two or more races. During this period, minority populations grew more than seven times faster than the overall population of the Portland-Vancouver MSA, which grew by 5.4% during the same period.

The minority population in the Portland-Vancouver MSA is quite heterogeneous. Almost all the African American and American Indian residents in metropolitan Portland-Vancouver were born within the United States. Many Asian American and Hispanic residents, however, are foreign-born. Table 11 in the appendix shows the racial composition of the Portland-Vancouver MSA.

Latinos are the fastest growing minority population because of domestic and international migration, as well as fertility levels above the Oregon state average. The Hispanic population grew by 10.9% between 1990 and 2000 and 6.0% between 2000 and 2008. Figure 10 shows the population growth rates of different race and ethnic groups between 1990, 2000 and 2008. Asian Americans are the second-largest minority population in the metropolitan area. The region receives immigrants from Vietnam, Hong Kong, Taiwan, Korea, Philippines, and Japan as well as Asian Americans who move here from other states. American Indians have remained a small but important minority in the Portland-Vancouver region. African Americans are the third largest minority population in the metropolitan area, numbering 53,892 in 2000, increasing from 42,785 in 1990.

Prior to the 2000 Census, there were no accurate estimates for the number of Oregonians who identify with two or more racial or ethnic groups. In the 2000 Census, 80% of residents in Portland and Oregon reported themselves as white. However, 3.3% of the population, or 53,480 people in the metropolitan Portland-Vancouver area, identified themselves as having two or more races in the 2000 census.

Figure 10. Percent Non-White by Year in the Portland-Vancouver MSA, 1990-2008

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

Due to the recent economic downturn, the State of Oregon is currently revising the official population forecast and forecasts are currently unavailable at the regional level. Preliminary results project that Oregon as a whole will grow 1.0% in 2010, 1.2% in 2011, and then stabilize at a yearly rate of about 1.2% per year until 2015. If we assume that the Portland-Vancouver Metro region will have similar growth levels, we can forecast a total population of 2,369,578 in 2015 for the region.

Data Sources

In this report, we use official state population estimates from Washington and Oregon and U.S. Census data from the decennial Census and the yearly county estimates program. This article does not cover Yamhill, Columbia, or Skamania counties, because these small-population counties belong to PUMAs that also include large areas outside of the Portland-Vancouver region.

Glossary

Annualized Growth. “Annualized growth” is the percentage growth that occurs each year during a period, calculated from two points which are more than a single year apart using the geometric average. For example, above we see that the annualized growth for the region between 1980 and 1990 was 1.3% – this means that in each year during that decade, the region added 1.3% more people than the previous year. Obviously, growth rates change from year to year, with some years higher and some lower; these are averaged together in “annualized growth” numbers.

Natural Increase. “Natural increase” is the amount by which the population changes that is NOT due to migration (people entering the population after they are born somewhere else). It is calculated by subtracting the number of deaths in a year from the number of births in the same year.

PUMA. A PUMA (Public Use Microdata Area) is a region designed to contain about 100,000 people at the 2000 Census, and is the level of geography specified in the one and three year pooled PUMS data. The Census Bureau withholds finer grained detail regarding location in order to protect the confidentiality of the survey respondents; otherwise, an analyst might be able to learn private details about a person and find that person through the PUMS data.

PUMS Data. PUMS (Public Use Microdata Sample) data are a copy of about half of the individual responses to the ACS questionnaire, along with some other variables added by the Census Bureau. These data allow us to create custom analyses, rather than rely on tabulations made by the Census Bureau.

Rate. A “rate” is a measure of how often an even happens for each unit of “exposure.” Exposure, in turn, refers to how many people are alive for a year. In order to calculate the mortality rate in 2006, for example, we would divide the number of deaths in the year by the number of people alive in the same year. We can calculate rates for many different events, including migration, fertility, marriage, etc.

Acknowledgments

We would like to thank Vivian Siu, Nancy Hales, Charles Rynerson, Sarah Iannarone, Emily Renfrow, and Lisa Yarbrough for their many helpful comments. Any errors are the responsibility of the author.

Appendix

Table 1. Population in the Portland-Vancouver MSA by County, 1930-2008 (Jump Back)

Year Portland-Vancouver MSA OR USA Skamania Columbia Yamhill Clackamas Clark Washington Multnomah
1930 500,011 953,786 123,100,000 2,891 20,047 22,036 46,205 40,316 30,275 338,241
1940 553,215 1,089,684 131,669,275 4,633 20,971 26,336 57,130 49,852 39,194 355,099
1950 766,068 1,521,341 150,697,361 4,788 22,967 33,484 86,716 85,307 61,269 471,537
1960 881,961 1,768,687 178,464,236 5,207 22,379 32,478 113,038 93,809 92,237 522,813
1970 1,081,978 2,091,533 203,302,031 5,845 28,790 40,213 166,088 128,454 157,920 554,668
1980 1,341,550 2,633,156 226,545,805 7,919 35,646 55,332 241,919 192,227 245,860 562,647
1990 1,523,741 2,842,337 250,132,000 8,289 37,557 65,551 278,850 238,053 311,554 583,887
2000 1,927,836 3,421,399 281,424,000 9,827 43,560 84,992 338,391 345,238 445,342 660,486
2008 2,191,785 3,791,075 304,059,000 10,700 48,095 94,325 376,660 424,200 519,925 717,880

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

Table 2. Population Change per Decade in Portland-Vancouver MSA, Oregon, USA and Portland-Vancouver MSA counties, 1930-2008 (Jump Back)

Decade Portland-Vancouver MSA Annualized
growth (% per year)
Oregon USA Skamania Columbia Yamhill Clackamas Clark Washington Multnomah
1930 – 1940 10.6% 1.0% 14.3% 7.0% 60.3% 4.6% 19.5% 23.6% 23.7% 29.5% 5.0%
1940 – 1950 38.5% 3.3% 39.6% 14.5% 3.4% 9.5% 27.4% 51.8% 71.1% 56.3% 32.8%
1950 – 1960 15.1% 1.4% 16.3% 18.4% 8.8% -2.6% -3.0% 30.4% 10.0% 50.5% 10.9%
1960 – 1970 22.7% 2.1% 18.2% 13.9% 12.3% 28.7% 23.8% 46.9% 36.9% 71.2% 6.1%
1970 – 1980 24.0% 2.2% 25.9% 11.4% 35.5% 23.8% 37.6% 45.7% 0.5% 55.7% 1.4%
1980 – 1990 13.9% 1.3% 7.9% 0.1% 4.7% 5.4% 18.5% 15.3% 0.2% 26.7% 3.8%
1990 – 2000 26.5% 2.4% 20.4% 10.4% 18.6% 16.0% 29.7% 21.4% 0.5% 42.9% 13.1%
2000 – 2008 13.7% 1.6% 10.8% 8.0% 8.9% 10.4% 11.0% 11.3% 22.9% 16.8% 8.6%

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

Table 3. Crude Rates in Portland-Vancouver MSA by County (Events per 1000 per Year), 2000-2008 (Jump Back)

Crude Birth Rate Crude Death Rate Crude Rate of Natural Increase Crude Migration Rate Crude
Growth Rate
Median age Annualized growth
(% per year)
Clackamas 11.7 8.0 3.7 9.6 13.4 38.9 1.3%
Columbia 11.5 8.8 2.7 9.6 12.4 39.5 1.2%
Multnomah 14.5 8.4 6.1 4.3 10.4 36.9 1.0%
Washington 16.3 5.9 10.4 8.9 19.3 35.0 1.9%
Yamhill 14.0 8.4 5.6 7.4 13.0 34.9 1.3%
Clark 14.4 6.7 7.8 17.9 25.7 35.1 2.5%
Skamania 10.3 7.3 3.0 7.0 10.1 n/a 1.0%
Portland-Vancouver MSA 14.3 7.4 6.9 9.1 16.0 n/a 1.6%
Oregon 13.3 8.8 4.6 8.2 12.8 38.0 1.3%
Washington 14.1 7.8 6.3 8.4 14.7 36.8 1.4%

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

Table 4. Components of Population Change, 2000-2008 (Jump Back)

July 1, 2008 Population Estimate April 1, 2000 Census Population Population Change 2000-08 Percent Change 2000-08 Births 2000-08 Deaths 2000-08 Natural Increase 2000-08 Net Migration 2000-08 Percent Migration
Clackamas 376,660 338,391 38,269 11.3% 33,459 22,766 10,693 27,576 72.1%
Columbia 48,095 43,560 4,535 10.4% 4,213 3,212 1,001 3,534 77.9%
Multnomah 717,880 660,486 57,394 8.7% 79,875 46,178 33,697 23,697 41.3%
Washington 519,925 445,342 74,583 16.7% 62,774 22,667 40,107 34,476 46.2%
Yamhill 94,325 84,992 9,333 11.0% 10,039 6,005 4,034 5,299 56.8%
Clark 424,200 345,238 78,962 22.9% 44,370 20,491 23,879 55,083 69.8%
Skamania 10,700 9,872 828 8.4% 847 597 250 578 69.8%
Portland-Vancouver MSA 2,191,785 1,927,881 263,904 13.7% 235,577 12,1916 113,661 150,243 56.9%
Oregon 3,791,075 3,421,399 369,676 10.8% 384,725 252,545 132,180 237,496 64.2%
Washington 6,587,600 5,894,143 693,457 11.8% 662,802 365,571 297,231 396,226 57.1%

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

Table 5. Components of Population Change, 1990-1999 (Jump Back)

April 1, 2000 Census Population April 1, 1990 Census Population Population Change 1990-2000 Percent Change 1990-2000 Births 1990-2000 Deaths 1990-2000 Natural Increase 1990-2000 Net Migration 1990-2000 Percent Migration
Clackamas 338,391 278,850 59,541 21.4% 40,009 23,244 16,765 42,776 71.8%
Columbia 43,560 37,557 6,003 16.0% 4,857 3,154 1,703 4,300 71.6%
Multnomah 660,486 583,887 76,599 13.1% 91,434 57,331 34,103 42,496 55.5%
Washington 445,342 311,554 133,788 42.9% 6,1163 23,141 38,022 95,766 71.6%
Yamhill 84,992 65,551 19,441 29.7% 10,514 5,902 4,612 14,829 76.3%
Clark 345,238 238,053 107,185 45.0% 46,752 20,199 26,553 80,632 75.2%
Skamania 9,872 8,289 1,583 19.1% 919 623 296 1,287 81.3%
Portland-Vancouver MSA 1,927,881 1,523,741 404,140 26.5% 255,648 133,594 122,054 282,086 69.8%
Oregon 3,421,399 2,842,321 579,078 20.4% 430,949 273,323 157,626 421,452 72.8%
Washington 5,894,121 4,866,669 1,027,452 21.1% 810,028 414,404 395,623 631,829 61.5%

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

Table 6. Components of Population Change, 1980-1989

April 1, 1990 Census Population April 1, 1980 Census Population Population Change 1980-1990 Percent Change 1980-1990 Births 1980-1990 Deaths 1980-1990 Natural Increase 1980-1990 Net Migration 1980-1990 Percent Migration
Clackamas 278,850 241,911 36,939 15.3% 34,328 18,598 15,730 21,209 57.5%
Columbia 37,557 35,646 1,911 5.4% 5,179 3,042 2,137 -226 n/a
Multnomah 583,887 562,647 21,240 3.8% 88,129 56,705 31,424 -10,184 n/a
Washington 311,554 245,860 65,694 26.7% 43,651 16,380 27,271 38,423 58.5%
Yamhill 65,551 55,332 10,219 18.5% 9,410 5,023 4,387 5,832 57.1%
Clark 238,053 192,227 45,826 23.8% 33,169 14,547 18,622 27,204 59.4%
Skamania 8,289 7,919 370 4.7% 1,142 469 673 -303 n/a
Portland-Vancouver MSA 1,523,741 1,341,542 182,199 13.6% 215,008 114,764 100,244 81,955 45.0%
Oregon 2,842,321 2,633,156 209,165 7.9% 404,185 231,987 172,198 36,967 17.7%
Washington 4,866,692 4,132,353 734,339 17.8% 704,532 339,797 364,735 369,604 50.3%

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

Table 7. Crude rates by County 1990-1999 (Jump Back)

Crude Birth Rate Crude Death Rate Crude Rate of Natural Increase Crude Migration Rate Crude Growth Rate Annualized growth
Clackamas 16.2 9.4 6.8 17.3 24. 2.0%
Columbia 15.0 9.7 5.3 13.3 18.5 1.5%
Multnomah 18.4 11.5 6.9 8.5 15.4 1.2%
Washington 20.2 7.6 12.6 31.6 44.2 3.6%
Yamhill 17.5 9.8 7.7 24.6 32.3 2.6%
Clark 20.0 8.7 11.4 34.6 45.9 3.8%
Skamania 12.7 8.6 4.1 17.7 21.8 1.8%
Portland-Vancouver MSA 18.5 9.7 8.8 20.4 29.3 2.4%
Oregon 17.2 10.9 6.3 16.8 23.1 1.9%
Washington 20.8 10.6 10.2 16.2 26.4 1.9%

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

Table 8. Crude rates by County 1980-1989

Crude Birth Rate Crude Death Rate Crude Rate of Natural Increase Crude Migration Rate Crude Growth Rate Annualized growth
Clackamas 16.5 8.9 7.6 10.2 17.7 1.4%
Columbia 17.7 10.4 7.3 -0.8 6.5 0.5%
Multnomah 19.2 12.4 6.9 -2.2 4.6 0.4%
Washington 19.6 7.4 12.2 17.2 29.5 2.4%
Yamhill 19.5 10.4 9.1 12.1 21.1 1.7%
Clark 19.3 8.5 10.8 15.8 26.6 2.2%
Skamania 17.6 7.2 10.4 -4.7 5.7 0.5%
PDX Region 18.8 10.0 8.8 7.2 15.9 1.3%
Oregon State 18.5 10.6 7.9 1.7 9.6 0.8%
Washington State 19.6 9.4 10.1 10.3 20.4 1.7%

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

Table 9. International and Domestic Migration in the Portland-Vancouver MSA by County, 2000-2008 (Jump Back)

Total Net migration 2000-2008 International migration Domestic migration Percent domestic migration
Oregon 251,213 92,394 158,819 63%
… Clackamas County 32,998 6,737 26,261 80%
… Columbia County 4,844 86 4,758 98%
… Multnomah County 24,150 29,396 -5,246 n/a
… Washington County 45,603 22,456 23,147 51%
… Yamhill County 9,558 2,288 7,270 76%
Washington 365,045 166,335 198,710 54%
… Clark County 56,996 10,449 46,547 82%
… Skamania County 739 31 708 96%
PDX Region 174,888 71,443 103,445 54%

Source: US Census Bureau.

Table 11. Racial Composition of the Portland-Vancouver MSA (Jump Back)

White Black American Indian Asian and Pacific Islander Other races + 2 or more Non-Hispanic Hispanic
Portland-Vancouver MSA 1990 1,414,922 42,328 14,971 52,916 N/A 1,474,348 50,789
Portland-Vancouver MSA 2000 1,714,306 53,716 18,265 96,147 51,504 1,785,039 142,842
Portland-Vancouver MSA 2008 1,931,418 68,330 21,725 127,752 58,237 1,976,304 231,158
Annualized % 1990-2000 2.8% 2.3% 2.0% 6.1% N/A 1.9% 10.9%
Annualized % 2000-2008 0.4% 3.0% 2.1% 3.5% 3.0% 1.3% 6.0%
Portland-Vancouver MSA 1990 92.7% 2.8% 1.0% 3.5% N/A 96.6% 3.4%
Portland-Vancouver MSA 2000 89.7% 2.6% 0.9% 4.6% 2.2% 93.1% 6.9%
Portland-Vancouver MSA 2008 87.5% 3.1% 1.0% 5.8% 2.6% 89.5% 10.5%

Source: Portland State Population Research Center, US Census Bureau, and Washington State Office of Financial Management.

Foreclosure Activity in the Portland-Vancouver MSA

Tuesday, March 9th, 2010

Foreclosure activity is an important indicator of community and neighborhood health and the economic viability of households. In the Portland region, foreclosure activity is comparable to many areas of the United States, with significant segments of the population struggling to make their mortgage payments. This article explores zip code level foreclosure activity in Clackamas, Clark, Multnomah, Washington, and Yamhill counties from May 2007 through October 2009.

Table of Contents

Summary

The foreclosure crisis continues to unfold in the United States. In 2009, RealtyTrac reported 3.9 million foreclosure filings on 2.8 million properties in the U.S., up 21 percent from the previous year.  Foreclosure filings include default notices, scheduled foreclosure auctions and bank reversions. About two percent of all U.S. housing units received at least one foreclosure notice in 2009. California, Florida, Arizona and Illinois accounted for more than 50 percent of the 2009 foreclosure filings. In 2009, Oregon had the 11th highest rate of foreclosures, with one foreclosure filing for every 47 housing units. Between 2008 and 2009, Oregon filings increased 89 percent. Compared with 2007, foreclosure filings in 2009 increased by 303 percent.

While still high, monthly counts of pre-foreclosure notices in the Portland Metropolitan Statistical Area (MSA) have been steadily declining since late 2008. However, according to RealtyTrac data, counts of bank reversions in the Portland MSA continue to climb and reached near peak levels in October 2009 as default grace periods elapsed.

This briefing sheet is designed to stimulate discussion and invite feedback regarding the usefulness of the information for understanding the extent of the foreclosure problem, identifying neighborhoods at risk of widespread problems due to foreclosures, understanding neighborhood change, and targeting intervention.

Foreclosure Process

Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on mortgage payments and the lender files a public default notice, called a Notice of Default or Lis Pendens.

The foreclosure process can end one of four ways:

  1. The borrower pays off the defaulted amount during a pre-foreclosure period determined by state law and reinstates the loan.
  2. The borrower sells the property to a third party during the pre-foreclosure period (a “short sale”). The sale allows the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.
  3. A third party buys the property at a public auction at the end of the pre-foreclosure period.
  4. The lender takes ownership of the property, usually with the intent to re-sell it on the open market. Properties repossessed by the lender are also known as bank-owned or REO properties. In this article they are called “bank reversions.”

In Oregon, foreclosures are normally carried out in 150-180 days.

Causes of the Foreclosure Crisis

The initial foreclosure crisis stemmed from a long period of risky lending activity. Lenders and borrowers alike were willing to enter into loans on the assumption that home prices would continue to rise and credit would continue to flow. Both assumptions are no longer valid. Although Oregon’s housing market lags behind national trends, it continues to have more sellers than buyers and credit remains tight as financial institutions search for the new “normal” after the financial crisis.

Now that the foreclosure crisis has established itself, homeowners at risk for new foreclosures include:

  1. those with risky high interest, sub-prime,  Alternative A-paper (Alt-A), and adjustable rate (ARM) mortgages, and
  2. homeowners who have mortgages that are “under-water,” which means that they owe more on their mortgage than the home is worth.

Risky Mortgages

Data from the Home Mortgage Disclosure Act (HMDA) helps quantify how many risky loans have originated in the Portland MSA in the past few years. Risky loans in this dataset fall into two categories, “high cost” and “subprime” loans (these terms are often used interchangeably). Nearly one out of five conventional loans originated in the metropolitan region from 2004 through 2007 were “high cost loans,” which carried interest rates over three percent higher than the U.S. Treasury rate at the time of origination. Subprime loans were offered to people who did not qualify for a conventional loan for various reasons: because they had low income, a high loan-to-value ratio, or poor credit history. Lenders specializing in sub-prime loans provided over eleven percent of conventional loans from 2004 through 2006 in the Portland MSA. Subprime lending was concentrated in certain census tracts, which suggests some degree of discriminatory lending. Table 1 shows risky lending activity in the Portland MSA.

Table 1:  Conventional Loan Originations
in the Portland MSA
Year Originations High Cost By Subprime Lenders
2004 113,374 11.70% 17.90%
2005 143,447 23.50% 15.10%
2006 124,551 24.80% 9.40%
2007 95,850 14.30%
Total 477,222 19.20% 11.30%

Source: Home Mortgage Disclosure Act (HMDA)

Alt-A mortgages, another type of loan, are difficult to tease out of the HMDA data but also increasingly a concern in the foreclosure crisis. Alt-A loans frequently have interest rates slightly above conventional loans and include features to lower monthly payments for the first few years. They are aimed at people who have better credit than subprime borrowers but who have credit scores that make them ineligible for the best loans with low rates. Alt-A mortgages are also considered more flexible because they allow for high debt-to-income ratios and undocumented incomes. These types of mortgages seemed appealing to many borrowers while home prices were still rising and homes could be sold before payments on principal would be required.

As of October 2008, the Portland MSA had 26,222 Alt-A mortgages with nearly eight percent behind in payments by two months or more.  Statistics for Oregon in December 2009, generally representative of Portland trends, indicated that 25% of Alt-A mortgages were not current and a third of those not current were more than ninety days behind. Alt-A mortgages are projected to continue to deteriorate as higher-principal payments come due. With a soft housing market and tighter lending standards, those with Alt-A loans will struggle to refinance or sell their homes, forcing homeowners into negative equity or under-water positions and eventual default.

“Underwater” Mortgages

There is growing national concern about the increased percentage of “under-water” mortgages. As housing prices stabilize, more homeowners are finding they owe substantially more on their mortgage than the home is worth. If life transitions require mobility, such as a new job or divorce, these negative-equity mortgage holders are at risk of not paying the mortgage and simply leaving the house to foreclosure by the bank.

Defaulting on a mortgage may also represent a fresh start to homeowners residing in neighborhoods where housing prices are significantly suppressed below housing-bubble highs and are predicted to remain suppressed for many years. This situation is particularly vexing for homeowners who have mortgages with high interest rates, since negative equity excludes many refinancing options. As of the third quarter of 2009, 14.8% of mortgages within Portland MSA could be classified as “negative equity” mortgages, with 20.3% classified as “near negative equity.”

In most cases, foreclosures lag behind rising unemployment. The increase in the United States Gross Domestic Product (GDP) in the third quarter of 2009 signaled the end of the recession. Yet other economic indicators—particularly sustained high levels of unemployment—suggest that foreclosure activity may continue to increase. For instance, even though unemployment peaked in mid-2009, unemployment in Oregon (11%) and the Portland MSA (10.6%) remain higher than national rates (9.7%) as of December 2009. High unemployment rates in the Portland MSA will likely result in additional mortgage defaults, compounding the foreclosure crisis.

Data

Our primary data source for foreclosures is the monthly count of pre-foreclosure filings (notice of default that includes auction date) and bank reversions from RealtyTrac, aggregated by zip code. Because this data is released in a timely fashion, it allows IMS to track the crisis as it unfolds.

RealtyTrac arrives at the number of final auctions by counting the number of houses that revert to the bank. Since most housing auctions do not end with a sale to the public (because the bid price is too low), this proxy is fairly accurate in the Portland-Vancouver region.

There are several drawbacks to the RealtyTrac data:

  • Zipcode-level data obscures fine-grain geographic variation in foreclosure activity. Tract- or parcel-level data would be more useful.
  • This data specifically tracks bank reversions but does not capture all property transfers.
  • There may be inaccuracies in reporting, and we cannot verify any discrepancies because we only receive aggregate data.

Our data on current housing stock is derived from housing unit estimates from Environmental Systems Research Institute (ESRI) for 2009 at the zip code level.

Data from the Home Mortgage Disclosure Act (HMDA) allows us to analyze the relationship between sub-prime lending and foreclosures. This dataset provides context for our analysis, but we do not use it in depth since it does not provide zip code level data.

Portland-Vancouver MSA

The Portland-Vancouver region is still experiencing above-normal foreclosure activity. Monthly counts of foreclosure notices have declined from the late 2008 highs to mid 2008 levels. However, the RealtyTrac data show that counts of bank reversions continue to climb and reached near peak levels in October as default grace periods elapse.

The foreclosure crisis has put significant downward pressure on housing prices. Declines in Portland housing prices lagged behind most metropolitan regions by about a year, beginning in late-2007, early-2008. Current data suggests that housing prices are stabilizing. However, above-normal foreclosure activity combined with anticipated increases in the Federal Reserve rates suggest caution in assuming that (1) foreclosure rates are peaking and (2) housing prices will rebound anytime soon.

Foreclosure Rates

Foreclosure activity in the Portland area is comparable to many areas of the United States, with significant segments of the population struggling to make their mortgage payments. In January 2010, the Portland-Vancouver MSA ranked 61st in foreclosure activity out of 206 MSAs with populations greater than 200,000. With a foreclosure rate that is less than a quarter of Las Vegas’, the Portland region has been relatively unaffected by the crisis. The sun-belt cities in Nevada, Arizona, California, and Florida have become emblematic of the foreclosure crisis (see Table 2 for a listing of the top ten).

Still, foreclosure rates in Oregon and Portland remain high. January 2010 data from RealtyTrac showed that on average in the United States, 1 in every 409 housing units received a foreclosure notice. The same data indicated that the Portland MSA has a slightly lower rate of foreclosures than Oregon as a whole: 1 in 377 households in the Portland-Vancouver MSA, and 1 in 338 in Oregon, was in some state of foreclosure. Within the MSA, Yamhill (1 in 292) and Columbia counties (1 in 283) experienced the highest rates of foreclosure. Clark County had fewer foreclosure filings in January 2010. Foreclosure rates for each county within the MSA Portland are shown in Table 3.

Table 2.  Top Foreclosure Rates, January 2010
MSA Rank MSA Rate
1 Las Vegas, NV 1:82
2 Phoenix, AZ 1:102
3 Modesto, CA 1:107
4 Stockton, CA 1:107
5 Riverside-San Bernadino-Ontario, CA 1:109
6 Merced, CA 1:109
7 Vallejo-Fairfield, CA 1:112
8 Bakersfield, CA 1:118
9 Cape Coral – Fort Myers, FL 1:121
10 Orlando-Kissimmee, FL 1:143
61 Portland-Vancouver, OR 1:377
Oregon 1:338
USA 1:409

Note: MSAs include Metropolitan Areas with populations
greater than 200,000 *rank in states.
Source: RealtyTrac, January 2010

Table 3.  Foreclosure Rates by County,
January 2010
MSA Rank MSA Rate
Portland-Vancouver MSA 1:377
1 Columbia 1:283
2 Yamhill 1:292
3 Clackamas 1:314
4 Washington 1:377
5 Multnomah 1:378
6 Clark 1:511
7 Skamania 1:5196

Source: RealtyTrac, January 2010

Figures 1 and 2 show time series rates for pre-foreclosure filings and bank reversions for each county covered in this report. The data show that while the counties with the highest rates of pre-foreclosure filings have changed over time, Clark and Clackamas counties have had the highest rates of bank reversions in the Portland MSA.


Figure 1. Rates of Pre-Foreclosure Filings in Portland-Vancouver MSA,
by County, May 2007-October 2009

Source: RealtyTrac


Figure 2. Rates of Bank Reversions in Portland-Vancouver MSA,
by County, May 2007-October 2009

Source: RealtyTrac

In order to clearly see trends in foreclosure rates, we use a three month moving average that averages each month with the two prior months. Figure 3 shows raw totals and moving averages of pre-foreclosure filings and bank reversions in the Portland MSA between May 2007 and October 2009. The orange pre-foreclosure and bank reversion lines show the raw totals.


Figure 3. Rates of Pre-Foreclosure Filings in
Portland-Vancouver MSA, May 2007-October 2009

Source: RealtyTrac

Households in the first phase of foreclosure (Notice of Defaults with auction date), labeled as pre-foreclosures, have begun to decline. In October 2009, 1,049 houses or 1.37% of the single family housing stock was in the pre-foreclosure stage. This was down from late 2008 highs of over 2.5%.

It is unclear if bank reversions—the final stage of foreclosure—have peaked. In October 2009, 674 houses or 0.88% of the housing stock in the region reverted to bank ownership. The continued increase in bank reversions in spite of pre-foreclosure declines likely reflects a lag due to grace periods and auction date requirements (see Foreclosure Process in Oregon section).

Figures 4 and 5 on pages 8-9 show a map view of total foreclosures per 1000 housing units between May 2007 and October 2009 for the Portland MSA.


Figure 4. Pre-Foreclosure Filings by Zip Code,
May 2007-October 2009 in the Portland MSA
per 1,000 Housing Units (2009 est.)

Source: Realty Trac, ESRI 2009 Housing Estimates


Figure 5. Bank Conversions by Zip Code,
May 2007-October 2009 in the Portland MSA
per 1,000 Housing Units (2009 est.)

Source: Realty Trac, ESRI 2009 Housing Estimates

Housing Prices

Depressed housing prices in the current crisis are both an indication of foreclosure pressures and a cause for continued foreclosure concerns. Like many metropolitan regions, housing prices in Portland began to fall as those struggling to meet mortgage payments —with the desire to sell short—flooded the market. Short sales and bank-owned foreclosed properties continue to dampen the market. Long-term depressed housing prices often coincide with negative equity positions for many households. Negative equity creates an incentive for owners to walk away from a mortgage to facilitate life changes or even make a fresh equity start.

Portland housing price trends lag behind the nation; one-year changes in housing prices as indexed by S&P Case-Schiller™ began dropping in the Portland MSA in January of 2008—about a year after the average city in the U.S. As of November 2009, Case-Schiller™ showed a 7.5% year-over-year drop in Portland MSA, the eighth worst one-year change in housing prices of the twenty cities followed. In comparison, the Case-Schiller™ 20-city Composite reported a 5.3% drop. The largest decreases occurred in Las Vegas (24.5%), Phoenix (14.2%), Tampa (13.2%), Detroit (13.0%), and Miami (12.1%); Seattle showed a 10.6% one-year drop.

While one-year changes in housing prices remain negative in Portland and the US, month-to-month changes in the Case-Schiller™ Index may indicate some optimism for a handful of cities. Unlike Charlotte, Las Vegas, Seattle and Tampa—which have yet to signal a bottom—housing prices in the Portland MSA seem to be stabilizing. With the exception of September, Portland has seen extremely modest month-to-month gains since May 2009 (0.1% increase in October , 0.3% increase in November).

Still, many experts suggest caution against counting on a continued strength in the market, since housing prices have likely been boosted by temporary federal policies such as the home purchase tax credit and low Federal Reserve rates. Further, spatial concentrations of foreclosures as discussed in the sections below suggest housing price stabilization will be spatially uneven.

Clackamas County

Clackamas County is located in the southeast part of the Portland-Vancouver region, with a population of 380,576 in 2008. Its county seat is Oregon City. Both pre-foreclosure filings and bank reversions (per 1000 housing units) have been consistently higher in Clackamas County than in Multnomah and Washington counties, but lower than Clark County foreclosure filing levels.


Figure 6. Foreclosure Activity in Clackamas County, May 2007 – October 2009

Source: Realty Trac, ESRI 2009 Housing Estimates


Figure 7. Pre-Foreclosure
Filings by Zip Code
in Clackamas County
for 2007, 2008, 2009
per 1,000 Housing Units
(2009 est.)

Figure 8. Bank Conversions
by Zip Code
in Clackamas County
for 2007, 2008, 2009
per 1,000 Housing Units
(2009 est.)


Note: “2007” includes data from May through December 2007, “2008” includes data from January through December 2008, and “2009” includes data from January through October 2009. Source: Realty Trac, ESRI 2009 Housing Estimates.

Clackamas County has experienced high housing growth rates—a possible risk factor for foreclosures—in the last twenty years. The housing stock in Clackamas County is characterized by a larger share of newer homes. As a result, the average loan balance is likely to be significantly higher in Clackamas County than in Multnomah County, which—in relative terms—has seen slower housing growth in recent years. In a declining market, a high loan balance frequently serves as a catalyst for housing distress as the value of the property drops below the amount owed. With little or no equity left, the homeowner’s incentive to keep making mortgage payments is reduced substantially—particularly in times of trouble.

Many of these newer homes have “risky” mortgages. The percentage of risky loans for Clackamas County is similar or slightly lower than Multnomah County and the overall region. Still, at the height of subprime lending in 2004, seventeen percent of conventional (non-FHA, non-VA) loans originated were provided by lenders specializing in subprime lending. Over one in five loans originated in 2005 and 2006 were considered high-cost loans, where the interest rate was over three percent higher than US Treasury rates at time of origination (see Appendix B: Subprime and High Interest Rate Lending).

Figures 6 and 7 shows pre-foreclosure filing and bank reversion rates for Clackamas County. The hardest-hit zip code is 97086, which corresponds roughly to the city of Happy Valley on the border with Multnomah County. In 2006 a record number of newly-constructed, high-end homes were purchased in the area. As home values fell, Happy Valley was left with 675 empty lots and 35 half-finished homes. Price points soon started to tumble, affecting nearby neighborhoods and eventually leading to one of the highest foreclosure rates for any county in the state of Oregon.

The RealtyTrac data show that towards the end of 2009, pre-foreclosure and bank reversion rates for Clackamas County have remained higher than in any other county in the MSA except for Clark County. Compared to the previous year, the pre-foreclosure rate is up by almost 100% and bank reversions in particular have skyrocketed. In 2009 roughly one in every five homes sold was bank-owned.

For a detailed table, see Appendix A.

Clark County

Clark County was among the first counties surveyed in this report to show signs of housing distress. By the time the bubble burst in late 2007, pre-foreclosure rates were already significantly higher than in most other counties. Clark County’s head-start on pre-foreclosure filings and a more swift foreclosure process under Washington law resulted in a greater share of bank reversions than that experienced by other counties in subsequent months.


Figure 9. Foreclosure Activity in Clark County, May 2007 – October 2009

Source: Realty Trac, ESRI 2009 Housing Estimates

With twice as many bank reversions per housing unit as Multnomah County over the last 2.5 years, Clark County has the highest bank reversion rates in the MSA. Although pre-foreclosure filings remain high, Clark County’s relative position appears to be improving. In 2009 Clark County ranked fourth highest in terms of the pre-foreclosure rate, with fewer pre-foreclosure filings per 1,000 households than Columbia or Clackamas County, but still ahead of Multnomah and Washington.


Figure 10. Pre-Foreclosure
Filings by Zip Code
in Clark County
for 2007, 2008, 2009
per 1,000 Housing Units
(2009 est.)

Figure 11. Bank Conversions
by Zip Code
in Clark County
for 2007, 2008, 2009
per 1,000 Housing Units
(2009 est.)

Note: “2007” includes data from May through December 2007, “2008” includes data from January through December 2008, and “2009” includes data from January through October 2009. Source: Realty Trac, ESRI 2009 Housing Estimates.

Figures 9-11 show pre-foreclosure filing and bank reversion rates for Clark County between May 2007 and October 2009. Areas east of Vancouver in zip codes such as 98607 (Washougal) and 98671 (Camas) have been hardest hit within the county, rivaling some of the region’s foreclosure hotspots such as Happy Valley in terms of filings per 1,000 households. In recent times, Clark County’s Northwood Park, Springbrook Ridge and The Village at Round Lake subdivisions have been among the leading suppliers of bank-owned inventory.

Much like Clackamas County, Clark County has experienced high growth in recent years, which has likely contributed to the county’s overall housing vulnerability. Clark County’s lower median household income (compared to Washington and Clackamas counties) would furthermore seem to suggest that residents were exposed to a greater extent to subprime lending practices, particularly prevalent among lower income, high-risk borrowers.
For instance, at the height of the subprime lending in 2004, twenty percent of conventional (non-FHA, non-VA) loans were originated by subprime lenders, whereas the regional percentage was eighteen. Furthermore, subprime lending decreased at a slower rate in Clark County than any other county in the region. Additionally, Clark County had a higher percentage of high-cost loans than Multnomah, Washington, and Clackamas counties. Over one in four loans originated in 2005 and 2006 originated with interest rates three or more percent higher than the current US Treasury rate. See For a detailed table, see Appendix B for more detailed information regarding risky lending.

The early onset of housing distress in Clark County lends additional support to the subprime hypothesis, given the consensus among housing experts that the initial wave of housing distress nationwide was largely the result of subprime lending, rather than prime lending or Alt-A mortgages.

For a detailed table, see Appendix A.

Multnomah County

Multnomah County is the most populous county in the Portland region, with a population of 714,567 in 2008. It encompasses the cities of Portland, Gresham and Troutdale. Given its high population, Multnomah County has—not surprisingly—recorded the largest number of foreclosures filings of all the counties covered in this report. On a per household basis, however, Multnomah County remains one of the strongest performing housing submarkets in the MSA. This is particularly true for the bank reversion rate, which was roughly 50% below the rate for Clark County in 2008 and 2009.


Figure 12. Foreclosure Activity in Multnomah County, May 2007 – October 2009

Source: Realty Trac, ESRI 2009 Housing Estimates


Figure 13. Pre-Foreclosure
Filings by Zip Code
in Multnomah County
for 2007, 2008, 2009
per 1,000 Housing Units
(2009 est.)

Figure 14. Bank Conversions
by Zip Code
in Multnomah County
for 2007, 2008, 2009
per 1,000 Housing Units
(2009 est.)

Note: “2007” includes data from May through December 2007, “2008” includes data from January through December 2008, and “2009” includes data from January through October 2009. Source: Realty Trac, ESRI 2009 Housing Estimates.

Large income disparities, the age of housing stock, and substantial ethnic concentrations have impacted the extent to which neighborhoods in Multnomah County have been affected by the foreclosure crisis.

Figures 12-14 show pre-foreclosure filing and bank reversion rates for Multnomah County between May 2007 and October 2009. Established neighborhoods in Inner Southeast and Northeast Portland neighborhoods, for instance, have remained largely unscathed by the foreclosure crisis, whereas areas along the I-205 corridor and in Gresham have had high foreclosure rates that are comparable with other hard-hit areas in the MSA. Zip codes hardest hit by the foreclosure crisis include 97266 (East Portland), 97236 (East Portland), and 97060 (Troutdale).

The percentage of loans originated by subprime specialists in Multnomah County was two percentage points higher than Washington County in 2004 and 2005 and remained one percentage point higher in 2006. Multnomah County also had higher percentages of high cost loans (greater than three percent over Treasury rates at time of origination) than Clackamas and Washington County.

For a detailed table, see Appendix A.

Washington County

Washington County is the second most populous county in the Portland region, with a population of 519,925 in 2008. A substantial share of the largest employers within the MSA is located within Washington County, providing employment and income stability to its residents, notably in Hillsboro and Beaverton. With many established neighborhoods, fewer large new developments built during the housing bubble, and a higher median income, Washington County had the lowest rates of subprime and high cost lending in the region in the years leading up to the foreclosure crisis.


Figure 15. Foreclosure Activity in Washington County, May 2007 – October 2009

Source: Realty Trac, ESRI 2009 Housing Estimates


Figure 16. Pre-Foreclosure
Filings by Zip Code
in Washington County
for 2007, 2008, 2009
per 1,000 Housing Units
(2009 est.)

Figure 17. Bank Conversions
by Zip Code
in Washington County
for 2007, 2008, 2009
per 1,000 Housing Units
(2009 est.)

Note: “2007” includes data from May through December 2007, “2008” includes data from January through December 2008, and “2009” includes data from January through October 2009. Source: Realty Trac, ESRI 2009 Housing Estimates.

These factors have likely contributed to greater resilience as the foreclosure crisis has unfolded, as shown by the near absence of bank reversions in 2007 and 2008. Figures 15-17 show pre-foreclosure filing and bank reversion rates for Washington County between May 2007 and October 2009. Pre-Foreclosure rates have also consistently remained lower than in any other county surveyed in this report. Sections located along the county’s major transit corridors (Hwy 26 and 217) have seen little foreclosure activity, roughly similar to foreclosure filing rates in inner southeast and northeast Portland neighborhoods.

However, RealtyTrac data for 2009 suggests that Washington County is seeing increasing foreclosure activity. For the first time since the housing market has been in decline, the county has posted a greater bank reversion rate than Multnomah County. Repossessions have been increasingly prevalent in parts of Washington County that have witnessed substantial housing development in recent years, such as Sherwood, Cornelius and Hillsboro (on the southern border of the county). Similarly, several subdivisions and master-planned communities developed on land that was recently added to the urban growth boundary (UGB) on the north side of NW Springville Road are also showing signs of weakness. The evidence of housing distress in areas with large additions of housing inventory provides evidence in favor of Portland’s urban growth boundary, which is a means of protecting the city against more widespread supply-demand imbalances.

For a detailed table, see Appendix A.

Yamhill County

Yamhill County is a rural, agriculturally-based county with several small towns along the Highway 99 corridor, including McMinnville and Newberg. Residents commute to both Salem and Portland for work. Yamhill County saw higher than regional average rates of lending by subprime lenders (20% in 2004, 15% in 2005, and 10% in 2006) and of high cost loans (15% in 2004, 26% in 2005, 27% in 2006, 18% in 2007, and 10% in 2008). These risky loans make Yamhill County particularly vulnerable to crisis.


Figure 18. Foreclosure Activity in Yamhill County, May 2007 – October 2009

Source: Realty Trac, ESRI 2009 Housing Estimates

In terms of the pre-foreclosure rate, Yamhill County has been the most severely affected county within the MSA. Much like Clark County, Yamhill County was also an early victim of the foreclosure crisis, leading the pack in 2007 and most of 2008 as far as the pre-foreclosure rate is concerned. In contrast to Clark County, however, bank reversions have been less swift and are roughly in-line with the rate for Clackamas County.


Figure 19. Pre-Foreclosure
Filings by Zip Code
in Yamhill County
for 2007, 2008, 2009
per 1,000 Housing Units
(2009 est.)

Figure 20. Bank Conversions
by Zip Code
in Yamhill County
for 2007, 2008, 2009
per 1,000 Housing Units
(2009 est.)

Note: “2007” includes data from May through December 2007, “2008” includes data from January through December 2008, and “2009” includes data from January through October 2009. Source: Realty Trac, ESRI 2009 Housing Estimates.

Figures 18-20 show pre-foreclosure filing and bank reversion rates for Washington County between May 2007 and October 2009. The highest concentration of foreclosure activity in Yamhill County is in and around the towns of Lafayette, McMinnville and Willamina.

For a detailed table, see Appendix A.

Conclusion

The Portland MSA has seen less foreclosure activity than other MSAs that grew rapidly during the housing boom. However, areas of the Portland MSA with extensive new developments and relatively high amounts of risky lending during early to mid 2000s, have experienced a higher rate of foreclosure activity. This article has provided insight into local-level trends that have not previously been published. Foreclosure rates are compounded by other economic factors, including unemployment rates. In fact, foreclosure rates may continue to rise even as the economy recovers, particularly if high unemployment persists. In the future, counties should work to provide timely tracking of foreclosure data to policymakers and the public in order to shed light on real estate trends.

Preferred Citation

IMS encourages the redistribution and discussion of this brief, as long as it is referenced. Please cite it as:

“Foreclosure Activity in the Portland-Vancouver Region. March 2010. Institute of Portland Metropolitan Studies. Webb Sprague, Emily Picha, Nicole Iroz Elardo, Tom Heinicke,”

Acknowledgments

We would like to thank RealtyTrac for its cooperation in sharing local foreclosure counts. We would also like to thank the National Neighborhood Indicators Partnership for its continued support.

In addition, we would like to thank Tom Heinicke for his editorial contributions to this article. Tom runs Agent 503, a resource for prospective home buyers in the Portland region.

Appendices

Appendix A: Detailed County Data & Appendix B: Subprime and High Interest Rate Lending (PDF, 84K)