Southern Oregon’s Housing Crunch: A Growing Threat to Our Workforce and Local Economy
Southern Oregon’s Housing Crunch: A Growing Threat to Our Workforce and Local Economy
In Southern Oregon, a healthy housing market is critical to sustaining our communities, supporting local businesses, and attracting a stable workforce. But as rental and homeownership costs soar across the state, Southern Oregon is not immune. The region is experiencing a tightening housing crisis that threatens to price out the very workers our local economy relies on—teachers, healthcare staff, skilled tradespeople, and service industry employees.
Rising Costs and Shrinking Options
Across Oregon, nearly half of all renters are cost-burdened, spending more than 30% of their income on housing. In 2023, the median rent reached $1,500 statewide, and while Southern Oregon’s averages may be slightly lower, the gap between wages and housing costs is just as wide—if not worse—in rural and small-town communities.
The situation isn’t much better for aspiring homeowners. Since 2019, Oregon’s average home prices have jumped over 34%, and even modest homes in places like Medford, Grants Pass, and Ashland are often out of reach for middle-income buyers. Homeownership in Jackson County, once seen as a stepping stone to financial stability, is becoming increasingly unattainable.
The Missing Middle: A Workforce Without Housing
In Southern Oregon, businesses are already feeling the pinch of the housing shortage. Workforce housing—affordable homes for middle-income earners—has become one of the region’s most urgent and under-addressed needs. These are homes meant for people who don’t qualify for subsidized housing but still can’t afford current market rates.
Hospital administrators report difficulty hiring nurses and support staff. School districts are struggling to attract new teachers. Construction firms, restaurants, and retail businesses are all experiencing hiring challenges, not for lack of interest—but because workers can’t find housing within commuting distance.
Longer commutes and relocation to outlying areas mean reduced worker reliability, higher turnover, and increased operating costs for local employers.
A Community-Wide Impact
The consequences ripple far beyond individual households. Without adequate workforce housing:
- Businesses struggle to grow due to labor shortages.
- Young families are priced out, leading to declining school enrollments.
- Local tax bases shrink, putting pressure on public services.
- Entrepreneurs face barriers, especially when housing costs eat into startup capital or drive away talent.
In many ways, the housing crisis is now a business crisis—especially in smaller communities where a few key employers are the backbone of the local economy.
Opportunities and Urgency
Southern Oregon has a chance to respond creatively. Some communities are exploring zoning reforms to allow for more duplexes, townhomes, and mixed-use developments. Others are investing in public-private partnerships and incentives for builders to create workforce-targeted housing.
But the pace is slow. Meanwhile, Oregon continues to fall behind: the state needs to build nearly 30,000 homes annually to meet current demand, yet only 14,270 permits were issued in 2024—a troubling 19% drop from the year prior.
Without faster action, Southern Oregon risks becoming a place where people work—but can no longer afford to live.
A Call to Action
For business leaders, policymakers, and economic developers in Southern Oregon, housing must become a top priority. That means:
- Supporting regional housing initiatives focused on workforce needs
- Investing in infrastructure that enables higher-density housing
- Collaborating across sectors to align development with employment trends
- Advocating for state and federal support to increase housing supply and affordability
We often talk about economic development in terms of jobs, infrastructure, and innovation. But all of that is built on a foundation of people—and people need homes. To build a resilient, thriving economy in Southern Oregon, we must ensure our workforce has a place to call home.
Additional Housing Insight from Jake Procino, Workforce Analyst, Oregon Employment Department
Characteristics of Home Ownership and Renting in Oregon
I was born and raised in the rogue valley. After college I left the state because I will never afford housing where I grew up.