Cost of Living in Oregon: Average Rent, Groceries, Utilities, and More

Oregon offers a mix of natural beauty, vibrant city life, and small-town charm—but how much does it really cost to live here? With a diverse housing market and expenses that vary across the state, the cost of living in Oregon can be an important factor for potential newcomers. While some areas come with a higher price tag, others provide more affordable options, particularly for housing. Whether you’re drawn to Portland’s energy, Eugene’s college town appeal, or the scenic tranquility of Bend, this guide breaks down what you can expect when it comes to the average rent in Oregon, along with other essentials that shape the cost of living across the state.

Housing costs: Median home prices and average rent in Oregon

Housing costs play a major role in the cost of living in Oregon, with the average rent in Oregon at $1,540—slightly below the national average rent of $1,645. However, affordability depends on where you settle. Rent prices in Portland and its suburbs are typically higher, driven by strong demand and vibrant city life, while cities like Salem and Eugene offer slightly lower rents. Homebuyers face similar trends, with median home prices in popular areas like Bend significantly above state averages. Despite this, the diverse options across the state make it possible to find a place that fits various budgets and lifestyles.

Oregon housing costs: Average rents and median home sale prices

Housing costs in popular cities in Oregon

Bend 

From skiing at Mount Bachelor in the winter to hiking and river sports in the summer, Bend’s natural surroundings are a major draw. As a result, housing costs in Bend are notably higher than the state average. The average rent in Bend for a two-bedroom apartment is around $1,820, significantly surpassing the average rent in Oregon of $1,540, and the national average rent of $1,645. With a median sale price of $700,000, homes for sale in Bend are also pricier than many other parts of the state, reflecting its appeal as a desirable destination for both residents and vacationers.

Eugene

As home to the University of Oregon, Eugene combines a vibrant, youthful culture with the comforts of a smaller city. Housing here, with one-bedroom rents averaging $1,590 and two-bedrooms at $1,850, lands slightly above the average rent in Oregon, $1,540. However, it still provides a relatively affordable option compared to more expensive areas like Portland or Bend. Eugene’s real estate market is competitive, partly due to demand from students and faculty. For those looking to move to Oregon, Eugene offers a well-balanced option, combining affordable housing with a lively, intellectual atmosphere that makes it a strong choice for a range of residents.

Medford

Medford, located in Southern Oregon, offers some of the state’s most affordable housing. With one-bedroom apartments around $1,145 and two-bedroom rentals averaging $1,375, Medford’s rental prices are noticeably lower than both the state and national averages. The city’s median home price of $400,000 also falls below the national median, making it an attractive option for homebuyers. Known for its agriculture, wine production, and scenic landscapes, Medford combines affordability with a slower pace of life, offering a comfortable cost of living in Oregon without sacrificing access to amenities and natural beauty.

Portland

Portland offers a dynamic urban living experience, but comes with higher housing costs. The average rent in Portland for a one-bedroom apartment is $1,570, while two-bedroom apartments average $2,160, both sitting well above Oregon’s overall average rent of $1,540. The city’s median home price is approximately $500,000, reflecting strong demand in this cultural and economic hub. Portland’s appeal lies in its unique blend of city amenities, outdoor access, and vibrant neighborhoods, though prospective residents should be prepared for higher-than-average living costs. For those who prioritize access to cultural events, dining, and a walkable environment, Portland remains a desirable choice in Oregon.

Salem

As the state capital, Salem offers a blend of government influence and a small-town feel. It provides a more affordable alternative compared to Portland, with average rents of $1,360 for a one-bedroom and $1,520 for a two-bedroom. This is slightly below the Oregon average rent of $1,540, making Salem a reasonable option for renters seeking lower housing costs while remaining within commuting distance to larger metropolitan areas. The housing market in Salem is diverse, offering a range of options from historic homes to new developments, making it a compelling choice for those looking to balance the cost of living in Oregon with a quieter lifestyle.

Utility costs contribute to a manageable cost of living in Oregon

When it comes to the cost of utilities in Oregon, residents can expect monthly expenses that are fairly typical for the Pacific Northwest but may vary depending on location and season. For a standard apartment, utility bills—which include electricity, heating, cooling, water, and garbage—tend to hover around $200 to $250 per month. In Oregon, energy costs are often influenced by the state’s climate, with colder winters in places like Bend requiring more heating, while temperate coastal areas like Portland might have lower heating needs but slightly higher water usage. Internet costs in Oregon typically range from $60 to $80 per month, adding to overall monthly expenses. While these costs are comparable to national averages, they can factor significantly into the overall cost of living in Oregon, especially when combined with housing expenses.

Utility bill comparisons: Oregon cities vs. nationwide average

Groceries cost slightly more in Oregon compared to national averages

Grocery costs in Oregon are about 6% higher than the national average, reflecting the state’s focus on fresh, local produce and high-quality food options. For instance, a loaf of bread costs around $4.39 in Portland and $4.37 in Eugene, compared to the national average of $3.97. Similarly, a gallon of milk will set you back $4.95 in Portland and $4.90 in Eugene, slightly above the national average of $4.69. Whether you’re shopping at a local market in Portland or a chain grocery store in Salem, you might notice this slight uptick in prices. While you may pay a bit more for your weekly shopping, many residents find the quality and variety of food available well worth the extra cost, making it a key consideration in the overall cost of living in Oregon.

Gas prices are above the national average in Oregon

Transportation costs in Oregon run a bit higher than the national average, largely due to elevated fuel prices. At an average of $3.58 per gallon, gas in Oregon surpasses the U.S. average of $3.08, adding up for frequent drivers. For those who rely on public transit, cities like Portland offer robust options, including the MAX light rail and extensive bus routes, which can help residents save on fuel and parking. However, outside major metro areas, residents may find themselves more dependent on personal vehicles, leading to additional expenses in vehicle maintenance, insurance, and registration. For prospective residents, understanding these transportation costs is key to getting a full picture of the cost of living in Oregon.

Healthcare costs vary in Oregon but tend to lean on the higher-end

Healthcare costs in Oregon can vary widely based on individual needs, insurance coverage, and the type of care required. For basic visits, like seeing a dentist or general practitioner, the costs are generally comparable to national averages, though there are some notable differences. For example, a dental visit in Eugene typically costs around $119.50, slightly above the national average of $116.86, while Portland’s average is just below that at $115.50. However, visiting a doctor shows a starker difference: in Eugene, the cost aligns with the national average of $142.74, but in Portland, it can reach up to $216.68. These variations highlight the importance of factoring healthcare expenses into the overall cost of living in Oregon, especially for those who may require regular medical care.

No sales tax in Oregon eases the burden of day-to-day purchases 

Oregon’s tax landscape has some unique aspects that impact the overall cost of living in the state. Notably, Oregon has no state sales tax, which means residents don’t pay extra on most retail purchases—an advantage that helps offset costs for everyday goods and services. However, Oregon’s individual income tax is on the higher side, with a top rate of 9.9% for high earners, making it one of the highest in the nation. Property tax in Oregon is 0.77% of the home’s assessed value, which is moderate compared to other states. These tax policies shape Oregon’s cost of living by reducing some expenses, like retail purchases, but increasing others, such as income taxes, which can be a significant factor for high-income households.

How much do I need to earn to live in Oregon?

To live comfortably in Oregon, it’s essential to understand the “30% rule,” which suggests that you should spend no more than 30% of your monthly income on housing costs. With the average rent in Oregon around $1,540, a renter following this guideline would need to earn at least $5,133 per month, or roughly $61,600 annually. Keep in mind, however, that costs can fluctuate significantly depending on location. For example, in Portland, where rents can be as high as $2,160 for a two-bedroom, meeting the 30% rule would require a higher income, while cities like Medford, with lower rents, may be more budget-friendly. Understanding the cost of living in Oregon, from housing to daily expenses, can help residents make informed decisions based on income needs and preferred lifestyle.

Methodology

Average 1-bedroom and 2-bedroom rent sourced from Rent. Median home sale price, state average monthly rent, national rent prices, and cost of living data sourced from Redfin.