Portland-area poverty rate falls as economic recovery spreads

Right 2 Dream Too doors

Doors that block the Right 2 Dream Too camp in Northwest Portland have mostly been decorated with themes that speak to homelessness and poverty.

(Benjamin Brink/File/2012)

The Portland-area poverty rate took a steep dive in 2015, reflecting a broader economic recovery.

Some 26,000 residents -- including the families of 12,000 children -- rose above the poverty line. The metro poverty rate dropped from 13.6 percent in 2014 to 12.2 percent last year, according to recently released numbers from the U.S. Census Bureau.

The new numbers suggest the economic recovery has caught on even among the most disadvantaged segments of the economy.

"It took a while for the expansion to get going," said Josh Lehner, an economist with the Oregon Office of Economic Analysis. "Now we're into our third year of really good job growth, and we're seeing good wage growth, too."

While the poverty rate still hasn't recovered to its pre-recession level of 11.1 percent, incomes are on the rise. The median household income in the Portland area rose to $63,850 in 2015 from $60,272 a year earlier.

Lehner's office found that Oregon's lowest earners -- those making less than $23,000 a year -- saw the biggest gains in income growth last year, but they also have the most ground to make up since the Great Recession. (The highest earners in Oregon, making more than $106,000 in 2015, are the only income group to have fully recovered from the recession.)

Their progress this year likely reflects a strengthening recovery that's largely wage-driven, Lehner said. The lowest earners likely aren't seeing the benefits of stock market performance or other investments, but rather are benefitting from climbing wages and more jobs.

Non-white residents, in particular, made gains against poverty. The rate for Portland-area residents of color fell to 17.6 percent, a decline of 4.6 percentage points in one year. The poverty rate for white Portland-area residents was 11.1 percent.

The federal poverty rate is standardized across the country, and it doesn't account for geographical differences in cost of living. It's set at just $11,880 for an individual and $24,300 for a family of four.

So those emerging from poverty might not feel any more economically secure, particularly against Portland's backdrop of climbing housing costs.

The Portland-based nonprofit 211 Info, a hotline for social service aid, said its seen no drop in requests for assistance. People who live below the poverty line make up the vast majority of the agency's call volume, and housing-related costs top the list.

Even clients who have secured housing are stretching -- or failing -- to meet other basic needs. Susan Salisbury, 211 Info's grant and health policy specialist, said 22 percent of recent callers have needed assistance paying utility bills.

"If you're trying to put money into housing, that's an extra that doesn't get met," Salisbury said. "So many personal resources are put into housing costs, and that's resulting in less money for other kinds of needs."

-- Elliot Njus

enjus@oregonian.com
503-294-5034
@enjus

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