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If it sounds too good to be true, it probably is. However, in Oregon, 0% loans are a reality. The governor’s office recently announced that the state is issuing loans without interest for developers to build middle-income housing. The incentive, designed to kick-start construction, will have a knock-on effect on homebuyers.
“The Moderate Income Revolving Loan aims to empower cities and counties by providing loans to local governments, which can support developers to ensure housing prices are within reach to individuals and families who struggle to secure enough traditional credit or financing,” Gov. Tina Kotek said in a statement.
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State lawmakers have approved $75 million for MIRL — a key component of Kotek’s housing package, which passed the 2024 legislative session.
“When Oregonians making a good wage can’t afford to live where they work, our businesses and communities can’t thrive. We have to work to make sure all Oregon families can afford a home with the urgency they deserve,” Kotek continued.
According to Redfin, Oregon is one of the most expensive states to buy a home, with a median sales price of $508,000. High prices have slowed down homebuilding, which has a shortfall of 29,500 new homes per year, according to Carl Riccadona, the state’s chief economist. “When we look at this nationally, housing affordability is as poor as it has been going all the way back to the 1980s when we had double-digit mortgage rates,” he said.
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“We need everything,” Tillamook County Commissioner Erin Skaar told Oregon Public Broadcasting. “We have a huge need for affordable housing. We have a huge need for workforce housing. The hospitality industry is employing so many, and some of those folks make a little too much to be in affordable housing, but couldn’t afford market rate.”