Portland Meteo v Seattle Metro real cost calculator (Beaverton, Lake Oswego: sales, real estate)

[Scorpion3510]

Hi all,

I was wondering if anyone had a COL calculator for the Seattle v Portland metro. I've found numerous online but they either don't take into account taxes or their housing information is skewed. For example one shows housing only 10% cheaper in Portland which is not correct.

Looking for an apt comparison for suburbs v suburbs (I assume Bellevue would be roughly equivalent to Lake Oswego? Or Shoreline v Beaverton maybe?

Thank you all in advance!

[pnwguy2]

This is tough because both metros have areas that are expensive and “less expensive”. By no means do I think either metro is cheap. But there are areas that are more affordable. In Seattle explore Kent, Auburn and even Shoreline to the north. In Portland, most anything east of 205 will be more affordable. It is a challenge but you can still find somewhat affordable areas in both metros.

[Scorpion3510]

Originally Posted by pnwguy2

This is tough because both metros have areas that are expensive and “less expensive”. By no means do I think either metro is cheap. But there are areas that are more affordable. In Seattle explore Kent, Auburn and even Shoreline to the north. In Portland, most anything east of 205 will be more affordable. It is a challenge but you can still find somewhat affordable areas in both metros.

They are both expensive but Seattle significantly more so. Shoreline a 4/2 2000 sq ft house from the 80s will sell for $950k. The median SFH home in Bellevue sells for $2.25 million. Perhaps Kent is less expensive but still likely to be at least $800k.

The equivalent of Bellevue would be Lake Oswego or West Linn perhaps. I looked in both those places and it looks like equivalent houses go for $700 -750k.

What I'm trying to calculate is if the lack of income tax in Washington is less than the savings on housing. However, as I said in the original message, is that COL calculators don't take into account taxes when comparing the two metros. I was wondering if anyone has a link to a good calculator that perhaps accomplishes this.

Thanks!

[pnwguy2]

The great debate over income tax vs sales tax (Oregon vs Washington) is interesting and somewhat complicated. Oregon has no sales tax, so they win if you are retired. But any income will be taxed.

If you live in Washington you will still pay sales tax but no income tax. Kind of a wash. I’m pretty sure there us not a huge difference.

[Scorpion3510]

Originally Posted by pnwguy2

The great debate over income tax vs sales tax (Oregon vs Washington) is interesting and somewhat complicated. Oregon has no sales tax, so they win if you are retired. But any income will be taxed.

If you live in Washington you will still pay sales tax but no income tax. Kind of a wash. I’m pretty sure there us not a huge difference.

Well I don't know if it's a great debate. The benefit of no income tax is far greater than no sales tax. If, say, you make $100k a year it's $4136 for the first $50k then 8.75% on the next $50k. Comes to $8511 in income tax. Unless you buy a car every year, I think no income tax wins.

However, does OR have deductions for state tax? Like having a dependent, 529 contributions, real estate taxes?

The other question is, and this is shot in the dark, how much is day care in the Portland metro?

[Pomelo]

Originally Posted by Scorpion3510

The other question is, and this is shot in the dark, how much is day care in the Portland metro?

Any reputable, licensed facility will be $1.5k+/month per child.

[Scorpion3510]

Originally Posted by Pomelo

Any reputable, licensed facility will be $1.5k+/month per child.

Thanks! I'm assuming that is full time (5 day / week) prices? Doesn't seem much of a discount compared to Seattle prices. Child care is like a mortgage payment!

I guess Portland is not quite the cheaper city I imagined it was. Except for housing, everything else seems roughly equal and the state income tax closes that gap.

I really do love the layout of the city and how it's setup compared to Seattle though. Beautiful city, we will be coming for a visit soon!

[pnwguy2]

Portland has become more manageable than Seattle due to a few things they got right before Seattle did. First a public transit rail system was built way ahead of Seattle. Second, they have a far more effective highway/freeway grid, (but a lot of that is due to geography.). Third, the city is not trying to be a major metropolis. This is the opposite of Seattle, a city that wants to be big and important. The mindset is quite different between the two.

[Pomelo]

Originally Posted by Scorpion3510

Thanks! I'm assuming that is full time (5 day / week) prices?

Yes.

[MtnSurfer]

Originally Posted by Scorpion3510

Thanks! I'm assuming that is full time (5 day / week) prices? Doesn't seem much of a discount compared to Seattle prices. Child care is like a mortgage payment!

I guess Portland is not quite the cheaper city I imagined it was. Except for housing, everything else seems roughly equal and the state income tax closes that gap.

I really do love the layout of the city and how it's setup compared to Seattle though. Beautiful city, we will be coming for a visit soon!

One of the most important factors not mentioned that makes a huge difference is your work. For example, if you work remotely, you could live in the greater Portland metro and still actually live on the WA side like many of us do. Then, you get all the benefits of Portland access including shopping tax free while not having to pay state income tax. It's the best of both worlds in many regards. Plus, many Vancouver neighborhoods are as close or closer to Portland amenities like the airport and downtown compared to other neighborhoods further south or east.

However, if you must work in Portland, then your income will likely drop compared to Seattle as a general rule. Companies simply pay less here by and large. So, if your income drops while having to pay income tax, it can be a relative wash financially. Or, it could even wind up costing you more considering the pay cut. So, a lot depends on your job(s) and where they will be located. Will you have to commute further and spend more on gas getting to and from work? Those things all need to be taken into consideration to answer the financial question more accurately.

Since I work remotely, I would have to get a 'really good' offer in Portland to even break even financially. That would include having to start paying OR income tax and gas for daily driving into PDX not to mention added time in rush hour traffic. And most companies don't want to pay a 'relatively' decent wage in line with the current COL while keeping up with inflation. Portland lags behind other mid size to larger cities in terms of pay especially when considering the rise in housing costs over the past few years here. Remember, overall COL is relative to local paying wages unless one imports their job. And that is becoming a more common theme especially post Covid.

Derek