Oregon is at the forefront of tackling one of the nation's most pressing challenges: housing affordability. With escalating home prices and rising interest rates creating significant barriers, particularly for first-time and moderate-income buyers, the state is rolling out a multi-pronged strategy designed to increase housing supply and provide crucial financial assistance. The goal? To make the dream of homeownership a reality for more Oregonians.

Bridging the Gap: Direct Buyer Assistance

One of the most immediate ways Oregon is empowering buyers is through robust financial support, primarily managed by Oregon Housing and Community Services (OHCS). Their suite of programs aims to reduce the upfront costs that often sideline prospective homeowners.

Expanded Down Payment Assistance (DPA) is a cornerstone of this effort. OHCS offers programs that can cover up to 100% of a buyer's cash required at closing, often pairing a fixed-rate first mortgage with a second mortgage in the form of a grant or forgivable loan [Source 1]. This creative financing helps with the down payment, closing costs, and prepaid items. A portion of these DPA funds is reserved specifically for Oregon veterans and first-time/first-generation homebuyers earning up to 100% of the Area Median Income (AMI) [Source 1].

Beyond immediate assistance, Oregon also champions First-Time Home Buyer Savings Accounts. This tax-advantaged program allows eligible Oregon residents to subtract annual contributions and earnings from their state taxable income. For the 2025 tax year, account holders may subtract up to the first $6,125 in contributions or earnings per year, or $12,245 for those filing a joint tax return [Source 2]. This creates a powerful incentive to accelerate savings accumulation for homebuying costs.

Looking ahead, Governor Kotek's 2025–2027 recommended budget proposes over $100 million in new bond authority specifically for new homeownership units and homebuyer assistance [Source 3].

Building Our Way Out: Increasing Housing Supply 🏗️

Oregon’s leaders understand that simply subsidizing demand won't solve the problem if there aren't enough homes to go around. A significant focus is therefore placed on boosting housing supply and reducing the cost of development.

Key to this strategy is the emphasis on "middle housing." Landmark legislation, including House Bill 2138 and previous mandates, has legalized and incentivized the construction of diverse housing types,, duplexes, triplexes, quadplexes, and cottage clusters, in areas traditionally zoned for single-family homes [Source 4]. This initiative diversifies housing options and provides more naturally affordable choices.

The state is also aggressively streamlining permitting and zoning processes to accelerate development. Efforts are underway to reduce "red tape," speed up land use reviews, and simplify the construction approval process, thus lowering a major non-construction cost for builders [Source 4].

To unlock new development land, the recommended budget includes a significant $100 million to establish a new housing infrastructure program [Source 3]. This funding will finance critical infrastructure, water, sewer, and transportation, needed to prepare land for thousands of new affordable and market-rate units, directly mitigating one of the most substantial expenses in development.

Oregon's comprehensive approach, tackling both financial access for buyers and systemic supply challenges, offers a promising blueprint for fostering a more affordable and equitable housing market.

Are you an Oregonian looking to buy your first home or explore available resources? Reach out, I can help you find the resources you're looking for and work with you on how you can take the next step towards homeownership!

Sources:

1. Oregon Housing and Community Services. "Down Payment Assistance" and "Flex Lending" Program details. (Referenced for DPA structure, funding sources, and veteran/AMI targets.)
2. Oregon Department of Revenue. "First-time Home Buyer Savings Accounts" Tax Information. (Referenced for 2025 tax subtraction limits and FTHBSA program details.)
3. Office of the Governor, Tina Kotek. "Governor Kotek Releases 2025-2027 Budget, Urges Building on Progress." (Referenced for new bond authority and the housing infrastructure program funding.)
4. Oregon Legislative Information System & 1000 Friends of Oregon. "House Bill 2138" Summary and related housing supply reforms. (Referenced for middle housing expansion and streamlining development barriers.)

eXp Realty in Oregon and its technology provider, Inside Real Estate, fully support the principles of the Fair Housing Act (Title VIII of the Civil Rights Act of 1968), as amended, which generally prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents of legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). As an adjunct to the foregoing commitment, both eXp Realty in Oregon and Inside Real Estate actively promote, and are committed to, creating and fostering an environment of diversity throughout their respective organizations and franchise systems, and each views such a concept as a critical component to the on-going success of their business operations. The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice and does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Opinions are my own and are not guarantees nor are they the views of eXp Realty.