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Staff: More than a third of Forest Grove renters faced severe rent burden in recent ACS estimate
Summary
At a state-mandated work session, senior planner Dan Ren cited American Community Survey estimates showing 33.3% of renter households were severely rent-burdened in 2022; staff and commissioners discussed drivers, existing local policies and the need for a housing production strategy tied to forthcoming state targets.
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Dan Ren, senior planner with the Community Development Department, told the Planning Commission that, by the legislative definition tied to House Bill 406, a community has "severe rent burden" when more than 25% of renter households pay over 50% of their income on housing-related costs. Using U.S. Census American Community Survey figures, Ren said 33.3% of Forest Grove renter households met that threshold in 2022. He reported a sampling-driven dip to about 29.9% in 2023 and a rise to 35.1% in 2024, with the number of affected households estimated to have increased from about 980 to 1,167 between 2023 and 2024.
Ren identified factors driving the trend: rising rents as the city grows, a local building boom in apartments (including several hundred new units over five years), pressures tied to demand from students attending Pacific University, and allowable annual rent increases that some landlords have used. He described the consequences of severe rent burden as reduced household spending on essentials, constrained housing choices and displacement risks.
On barriers and options, Ren said the city does not directly receive federal housing-entitlement funds and must compete for limited resources; it also lacks dedicated housing production staff. He reviewed local actions already in place: middle-housing code changes (townhouses, duplexes, triplexes, quadplexes, cottage clusters), density bonuses for regulated affordable units, reduced ADU fees and requirements following Senate Bill 1055, a nonprofit property-tax exemption for affordable housing providers, and an SDC deferral program to help cash flow for affordable projects.
Commissioners asked about the timing of the state'issued housing production targets and the next Housing Capacity Analysis; Ren said target numbers will be issued after the new year and the city is scheduled to begin an updated HCA in about two years. He noted the city will need to adopt a housing production strategy and other measures to meet state targets once they are published.
Why it matters: The presentation satisfies a state mandate to discuss the causes, consequences and potential solutions for severe rent burden. The data and forthcoming state production targets will shape planning and land-use actions in the near term.
What happens next: Staff will monitor state data releases and follow through with the Housing Capacity Analysis and a housing production strategy to be reviewed by the commission and adopted by City Council.

