10 Reasons A Retiree Might Regret Moving To Oregon

Oregon doesn't share many of the characteristics popularly associated with retirement destinations, such as year-round warm weather, sunny days throughout the season, and white sand beaches. However, the Beaver State offers a unique suite of tax advantages, experiences, and natural surroundings that attract seniors who know precisely what they're looking for in their golden years. More specifically, the state's lack of sales tax prevents retirees from getting nickel-and-dimed on every purchase. Coupled with no income tax on Social Security benefits, seniors keep more of their hard-earned dollars. Although lacking in the sunny and warm appeal, compared to classic retirement hotspots like Florida, Oregon offers stunning natural beauty from mystical mountains and rocky beaches to dense forests and teeming shores. With these perks, it's not surprising that some retirees break from the trend of snowbird retirement in the Southern United States to land in the Pacific Northwest.

Still, this overview of what Oregon has to offer risks overlooking some of the nuances that make some retirees second-guess their move. Similar to other states in the region, the cost of living in the Beaver State can stress even the most diligently crafted nest eggs. According to the Bureau of Economic Analysis (BEA), the cost of living in Oregon is 4.7% higher than the national average, but estimates vary. For instance, RentCafe puts the disparity at 8%. Despite the discrepancy in estimates, the fiscal burden is evidently higher in Oregon than in the rest of the country. This disproportionate cost of living is one of the many reasons retirees regret moving to the Beaver State. Becoming aware of these considerations before making the transition can save you a lot of time, money, and headache in your golden years.

Similar to other states in the Pacific Northwest, Oregon's housing stock has experienced a significant surge in value over the past few years. For example, the average home price in the Beaver State exploded from nearly $350,000 in 2019 to just shy of $490,000 in 2026, according to historical data tracked by Zillow. That's a 40% run up in value over the course of seven years. For reference, the average property in the U.S. is around $360,000, meaning retirees in Oregon face home prices about 36% higher than the national average.

These exorbitant housing prices can bring up the renting vs. owning decision for retirees looking to reside in Oregon. Surprisingly, the rental market hasn't followed quite the same trend as the broader housing market. The average rent in the Beaver State is $1,795, as reported by Zillow, 10% lower than the national average of $1,995.

Regardless, older Oregonians experience housing uncertainty at increasingly higher rates. The total number of residents experiencing homelessness surged by 13.6% between 2022 and 2023, per the Department of Housing and Urban Development. Oregon Public Broadcasting reports that the share of the unhoused population older than 65 surged by 12% in 2024 alone. Furthermore, about 25% of those suffering from housing uncertainty are older than 55, higher than the national norm. These stark numbers demonstrate how rising real estate costs disproportionately affect older individuals with limited budgets who often rely on fixed income throughout their golden years.

Another common area of financial concern for retirees in Oregon is property taxes. On its face, the Beaver State's rate doesn't seem too burdensome. The state's effective property tax rate of 0.78% is ranked 24th in the country, right in line with the average. However, the flat percentage rate can obscure what residents actually pay on an annual basis. Property tax rates are only fully understood when taking the value of the property into account. Given Oregon's pricey real estate market, people end up spending a high amount on their yearly property taxes. Based on the state's average home price of $487,843, per Zillow, the 0.78% effective property tax rate results in a $3,805.18 annual tax bill. For reference, the average American pays $1,889 in property taxes, according to the Tax Foundation.

Even though Oregon is far from being one of the states with the highest absolute property taxes, the lofty value of its real estate market ups the annual bills for homeowners. Unfortunately, the rates are only going up. As long as home values continue rising, so will the amount of people pay for accompanying taxes. However, the state's base property tax rates are also on the rise, up 0.05% since 2022. On an annual basis, that small percentage makes a difference of hundreds of dollars. As a vital funding source for the local government, property taxes are unlikely to subside in the future. According to the Oregon Department of Revenue, this tax generated $9.54 billion for state and local governments, the second largest income source, only behind income tax.

Homeowners association (HOA) fees are another reason retirees regret moving to Oregon. Along with home prices, property taxes, insurance premiums, and utility costs, these maintenance and upkeep expenses are another example of real estate-related costs of living in the Beaver State. According to New Home Source, Oregon has the third-highest HOA fees in the country. On average, residents pay roughly $402 per month to these residential organizations, often tasked with general maintenance in shared spaces and enforcing community rules. That means the typical retiree faces an extra $4,824 in annual living costs solely because their property falls within an HOA zone. It's estimated that a whopping 228,000 homes in Oregon are subject to these fees.

These dues usually spike in popular cities, putting more stress on retirees' fixed budgets. For instance, Portland's average HOA fee is a staggering $490 per month, according to an eXp Realty assessment of RMSL data. When drawn out over a year, that's an extra budget expense of $5,880. Beyond the raw value, property owners are struck by the rapid ascent of these prices. Over a recent three-year period, HOA fees rose by 30% in Portland alone.

The increase in HOAs affects homeowners in many ways. The price hikes are largely out of their control, and they corrode available budgets. When added to Oregon's already staggering home-related costs, HOA fees may be enough to make retirees reconsider. If you decide to move to the Beaver State, make sure you determine if the neighborhood, living community, or even nursing home comes with fixed HOA costs.

Oregon isn't one of the states that have the highest electricity bills in America, but that doesn't mean residents can breathe a sigh of economic relief in this area. The Beaver State doesn't appear to have unreasonable electricity costs, especially compared to the national average. According to the Energy Information Administration, the average residential price of electricity for Oregon hovered around 15.39 cents per kilowatt-hour in as measured year-over-year from November 2025, the latest data available. For comparison, the national average was 17.31 cents per kilowatt-hour for the same time period. Thus, Oregonians are saving more than 11% on their monthly electrical bills. With major utility expenses far below what residents pay elsewhere, why does this deserve a mention among reasons a retiree may regret moving to Oregon?

Well, the Beaver State's electricity costs are rising at a faster rate than the rest of the country. Between 2015 and 2025, average retail electricity prices rose from 12.65 to 17.31 cents per kilowatt-hour, marking a 36.8% increase over those 10 years. Within the same decade, the average Oregonian retail price for electricity surged from 10.66 to 15.39 cents per kilowatt-hour — more than a 44% spike. Therefore, electricity prices in the Beaver State have outpaced those of the country by about 8%.

According to the Oregon Department of Energy, these escalating costs are unlikely to slow as electricity expenses are pinched by the coal industry clampdown and booming electricity demand. Over the next decade, electrical consumption in the state is expected to explode by 30%, pushing prices higher. There are some tips and tricks to save money on electrical bills, but retirees may not be able to outpace the growth of those utility costs in Oregon.

Budget-conscious homeowners should always be on the lookout for sneaky reasons property insurance rates go up, especially when the price hike comes from moving to a different state. According to the National Association of Insurance Commissioners, yearly premium revenue across statewide insurers for property and casualty insurance exploded from $7,300,956 in 2020 to $10,443,078 in 2024. That represents a 43% increase in premiums over just five years. The Oregon Capital Chronicle notes that this steep rise in home insurance costs was largely accelerated by the state's increased frequency of severe weather events. The heightened damage to property that comes with these natural disasters makes it riskier for insurance companies to provide coverage, leading to a spike in coverage costs. Experts attribute much of the elevated hazards to climate change, in addition to the places where residents are constructing property.

The statewide rise in property insurance has also been padded by an increase in vehicle insurance. Experian indicates that the average policyholder will pay about $179 monthly or $2,143 annually for car insurance in the Beaver State. An Axios report on Insurify data sheds light on this figure, showing how the advance in Oregon's car insurance rates has outpaced the national average. Within a year, premiums have grown by 23%, far exceeding the U.S. average increase of 15%. A nationwide analysis by The Zebra highlighted Oregon as the state expected to see the largest spike in car insurance premiums in 2026. In the first half of the year, coverage costs are anticipated to rise by between 23% and 34%. If you decide to move to Oregon for retirement despite these exorbitant insurance prices, make sure to check out the car insurance discounts you might qualify for.

In 2026, health insurance premiums will rise for 20 million Americans, due to the expiration of Affordable Care Act (ACA) subsidies. Although residents of every state are affected by this revocation of credits, every regional health insurance market implements its own changes. In Oregon, those changes are acute. In 2025, the Oregon Division of Financial Regulation determined how much the state's health premiums would increase in the wake of the federal subsidy termination. A consolidated group of five statewide insurers concluded that rates would need to increase by 9.7% on average. However, some insurers spiked their premiums by a wallet-crunching 12.9%. Unfortunately, this hefty bump in healthcare coverage costs isn't unique to Oregon. In fact, the same group decided to kick up prices by 9.3% between 2024 and 2025, suggesting these changes are routine rather than solely a reaction to the ending of federal tax incentives.

Zooming out a few years shows that the trend of rising healthcare premiums extends much further back. The National Association of Insurance Commissioners reports that the total accident and health premiums in Oregon rose from $14,064,427 in 2020 to $21,975,139 in 2024, the last year for which data is available. Within only five years, premium costs have risen by a costly 56.3%, applying more pressure in an area already eating up a solid chunk of a senior's spending. Another common healthcare affordability struggle among Oregonians involves prescription drugs. A Healthcare Value Hub survey found that more than half of residents are concerned to some degree about their ability to cover the rising cost of prescription medicine. Notably, these concerns were heavily concentrated among those Oregonians earning between $75,000 and $100,000, suggesting that even those with far above-average income struggle cover drug prices.

Healthcare is one of the most crucial expenses for any American to manage, but it's especially impactful for seniors who experience unique health considerations. The health spending per person in Oregon is actually on par with the national average. Typically, Americans spend about $10,191 annually on healthcare, and Oregonians usually see a yearly bill of $10,071, according to the Centers for Medicare & Medicaid Services. However, the real healthcare cost surprises sneak up on you in retirement, and long-term care is among the priciest of these hidden expenses. Medicare — including Original Parts A and B, C, Advantage Plans, and Drug Coverage — doesn't tend to cover long-term healthcare costs, placing most of the financial burden on retirees. This is where cost differences by state can really make a difference. Unfortunately, Oregon extends far beyond the national norm.

For example, an in-home health aide costs $6,483 per month on average in the U.S., according to CareScout. Living in an assisted community is slightly lower at $5,900 monthly. The most involved and expensive type of long-term care is a private room in a nursing home, which usually costs about $10,646 per month. In contrast, a health aid charges $7,627 per month on average in Oregon. A room within an assisted living community isn't far behind at $7,313. These two vital long-term medical care services are 17.6% and 24% more expensive than the national average, respectively. The steepest price difference is seen in a nursing home, where a private room is $17,094 per month — 70% higher than the countrywide standard.

The amount of money you need to retire rich is relative based on the living expenses where you retire. As we've firmly established, the living costs in Oregon far outpace the national average, especially in specific areas, such as housing or transportation. Yet, seniors regretting their move to the Beaver State aren't only put off by how much they need to spend. Don't let Oregon's lack of sales tax fool you. The tax burden is simply shifted onto other areas. You've seen how property taxes can add up. Many are surprised by how much of their hard-earned nest egg is taken by the state government. Even if you're not in the workforce, you're subject to income tax, since Oregon treats many forms of retirement disbursements and payouts as normal income. More specifically, the state taxes retirement plan withdrawals, such as from employer-sponsored 401(k)s or individual retirement accounts, along with pensions and annuities.

These unforeseen taxes can considerably destabilize retirement planning, especially when residing in a more expensive area. To make matters worse, Oregon implements one of the country's most punitive progressive income tax systems, taking more away from residents than many other state governments. The tax rates kick in at 4.75% and top out at 9.9%. Kiplinger estimates that the average retirement income for seniors in Oregon is $28,565. This puts most seniors in the 8.75% income bracket. Keep in mind that this doesn't take federal taxes into account, representing a decent chunk of retirement income. Fortunately, Oregon has an exception for Social Security disbursements.

On top of higher-than-average state taxes and burdensome property taxes, Oregon also levies a hefty estate tax. In contrast to an inheritance tax, where the recipients are shouldered with the tax burden, an estate tax places a surcharge on the owners of the estate. This specialty tax is uniquely impactful for retirees who plan on transitioning their net worth to their family. Oregon is only one of 12 states that employ this specific surcharge on what's commonly dubbed a "death tax." What's notable about the Beaver State's tax on estate transference is the relatively low trigger. Each state with an estate tax places a threshold under which no taxes are paid. In Oregon, that floor is only $1 million — the lowest in the country. For perspective, the next two lowest exemptions for the estate tax are Rhode Island's roughly $1.8 million threshold and Massachusetts' $2 million limit.

Another penalizing characteristic of Oregon's estate tax is the actual tax rate. In addition to imposing the country's lowest exemption amount, the Beaver State has set one of the most extreme ranges. Depending on how much their estate is worth, Oregon seniors face estate taxes between 10% and 16%. At a minimum, retirees who have built a net worth of $1 million over their lifetime would owe six figures. Before moving anywhere for retirement, seniors should ask if they or their loved ones will be paying taxes on inheritance. It might not be the focus early on in retirement, but it can result in a seismic shift in the amount you plan to bequeath when not accounted for properly. Keep in mind that the overwhelming majority of states don't implement an estate tax at all.

Understandably, some of the biggest moving regrets people have in retirement relate to the largest expenditures involved in the process, such as housing costs, upfront moving expenses, and tax implications. However, even the seemingly small differences can make a long-term financial impact following a retirement transition. In Oregon, one of these sneaky financial burdens is the state's elevated gas prices. According to AAA, a gallon of gas in the Beaver State is $3.55. That means residents are spending about 22.4% more every time they fill up their tank than the nationwide average, which hovers around $2.90. These premiums stretch higher for higher-quality fuels. For instance, premium grade fuel is $4.04 per gallon, and diesel is $4.11.

According to the U.S. Department of Transportation's Federal Highway Administration, the average senior older than 65 drives about 7,646 miles per year. Furthermore, the U.S. Department of Energy posits that the average car in the U.S. has a fuel efficiency of 24.4 miles per gallon. Given those averages, an Oregonian senior spends about $204 more per year than their average counterpart in the U.S. Adding financial insult to costly injury, the state government levies the 12th-highest gas sales tax in the country. Every gallon purchase is slapped with a punitive $0.40.

For perspective, a standard 16-gallon tank size — Edmund's suggestion for the average fuel capacity — would come with an extra gas sales tax of $6.40. That may not seem extreme as a one-time fee, but covering this surcharge every time you fill up your vehicle adds up quickly. Using the average annual mileage for seniors, Oregonian retirees would be paying about $125.36 in gas taxes alone.