SALEM — Oregonians statewide say they are facing mounting financial challenges as rates of income inequality, bankruptcy and debt are on the rise, according to a report from the Oregon State Treasurer and the Oregon Values and Beliefs Center, an independent and nonpartisan research center based in Portland.

The center, together with the Oregon State Treasury, used state and federal data to help understand the financial challenges faced by residents across Oregon.

Nearly half of all survey respondents indicated they have difficulty in covering their monthly expenses and bills, and around one in three people reported that they would have trouble accessing an additional $2,000 in the event of an emergency, the survey showed. Those that reported having difficulty in finding extra funds were more likely to be renters, have a high school diploma or less and be between the ages of 18 to 29.

Between 2017 and 2021, there was a decline in the number of households living in poverty, and more individuals reported an uptick in their income. Still, those higher incomes may not be enough to keep up with the rising cost of living, said Amaury Vogel, the associate executive director of the values and beliefs center.

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“We’re seeing falling inflation, we’re seeing increased wages and we’re seeing low unemployment. But the cost of living is still so high,” Vogel said.

“While especially larger businesses are doing well, and the stock market looks great — that’s not the experience that everyday people are having. Most people don’t have access to the stock market. They don’t see that same benefit that shareholders are seeing from increased profits.”

According to the report, more than one in three residents in Oregon allocate over 30% of their income toward rent or mortgage — a phenomena known as being rent-burdened.

The report was supplemented by an online survey that included the perspectives of 1,489 participants from across the state, aged 18 and over. The survey was done from Oct 18-26 and has a margin of error of plus or minus 2.54%.

Debt on the rise

Debt is rising among Oregon households, too. More than half a million Oregon residents are burdened with student loan debt. On average, each borrower carries a student debt of around $38,000.

In 2022, the average per capita household debt reached $66,950 — which is around $10,000 higher than the national average. There’s an upward trend in credit card debt as well, with the average balance in Oregon increasing by around $600 from 2021 to 2022.

Following several years of steady decline, there was an increase in bankruptcy filings in 2023. Statewide, Oregon saw an overall increase of around 37% in bankruptcy filings. In Oregon, that number rose to 66.5%. The number of Oregonians with a credit rating below 660, also known as a subprime credit rating, rose by over 15%.

Between 2015 and 2020, the number of Oregon residents receiving public assistance or food stamps decreased by 3%. However, the data does not clearly indicate whether this decline is due to reduced financial need or increased difficulty in accessing these resources.

“Times are tough and we are still depressed from the pandemic. It will be some time before things get back to normal again,” wrote one man from Clackamas County on the survey.

Wage gap grows wider

Meanwhile, income inequality is on the rise as the gap between highest and lowest paid workers widens, according to the report.

In 2022, slightly more than half of Oregon’s total wealth went to the highest-earning 20% of wage earners. During the same period, the top 5% of Oregon residents received around 22% of all household income. Simply put, the wealthiest fifth of households earned over half of all the combined income across Oregon.

So while the average median household income rose ($71,742 in Central Oregon) it’s likely that the exceptionally high salaries of Oregon’s top earners distort economic metrics that rely on medians to assess financial wellbeing of residents across the state.

“On paper, especially if you’re looking at the overall statewide average, income has risen,” Vogel said. “But when you start to break down data — beyond just what the averages are — you can see increases in signs of stress, fragility and financial struggles.”