The situation of poverty in Portland is unique in some respects but also demonstrative of national policy changes. For instance The Personal Responsibility and Work Opportunity Reconciliation Act (1996) made drastic cuts to the national welfare program. Labor unions are also significantly weaker today than they were in the past. The national economy has transitioned from manufacturing to low-wage service work. There is a disproportion of investment incomes coupled with non-progressive tax and welfare policies. These changes also coincide with globalization and the outsourcing of jobs (Butz, 2012, p. 359-360). In accordance with national changes, Portland has similarities to United States economy. Portland’s unemployment rate was equal with that of the U.S in 2011, standing at 8.4%. The median income was also close to equal Portland showing $50,979 compared to the national median income of $52,979. The poverty rate in Portland, 14.4%, is just one percent higher than the U.S poverty rate (Bls.gov).
What seems to be different about the Portland is the rapid rate of gentrification that occurred between 1990 and 2000. Figure 1 shows how the turnover between households has was rapid in 1995. The greatest areas of turnover are shown in the suburbs, many of which show an 80% rate of change (Brookings Institution, 2003). The change of households also indicates where concentrations of poverty lie. Following the 1990-2000 period of gentrification the census tracts showing the highest levels of poverty are located in the urban core and edge suburbs. In 2000, the inner city and its periphery show proportions of population above 30% that are high poverty. Outlying neighborhoods in the north and northeast show populations proportions between 20-30% that are in high poverty (See Figure 2). This also may be a result of the high concentration of poverty in Vancouver, WA to the north.
What seems to be different about the Portland is the rapid rate of gentrification that occurred between 1990 and 2000. Figure 1 shows how the turnover between households has was rapid in 1995. The greatest areas of turnover are shown in the suburbs, many of which show an 80% rate of change (Brookings Institution, 2003). The change of households also indicates where concentrations of poverty lie. Following the 1990-2000 period of gentrification the census tracts showing the highest levels of poverty are located in the urban core and edge suburbs. In 2000, the inner city and its periphery show proportions of population above 30% that are high poverty. Outlying neighborhoods in the north and northeast show populations proportions between 20-30% that are in high poverty (See Figure 2). This also may be a result of the high concentration of poverty in Vancouver, WA to the north.
Metro, the Portland planning commission has been taking steps to increase property values in the urban core, via an urban growth boundary designed for infill development. However these actions have resulted in displacement. As of 2011, poverty has moved drastically from the urban core to southeastern suburbs. Concentrations of poverty have developed in Multnomah County, specifically Rockwood as well as Hilsboro and Beaverton. (Butz, 2012, p. 369). The shift in poverty is also evident by the map in figure 3 provided by the city of Portland. The dispersal of low-income areas is observed in several of Portland’s outlying regions. What is most cogent about Portland’s socio-economic situation is that homelessness is more concentrated than poverty. The reason may be the disparity between rising home prices and incomes that are not keeping pace. Between 1990 and 2000, Portland had the fastest increase in rent prices at 18.9% (Brookings Institution, 2003). Due to this rapid increase in property value, the very bottom income bracket has plummeted into homelessness. Portland has responded with the Interagency Council on Homelessness House- Home First program, which reportedly deals with 16,000-18,000 homeless people annually (Butz, 2012, p.360). Portland also has a 10-year plan for ending homelessness, which focuses efforts in the city and Multnomah County. Since 2004, the plan has made homes for 12,500 families (Home Again).