Coastal Investors find reasonable operating costs in Oregon

[AJ Wong]

Of all the coastal States (Cali, Florida, Oregon) I've lived and invested in, by far the lowest carrying costs are in the latter. 

On average property insurance costs alone have risen around 25% since 2020, depending on the specific risks to the area, premiums could have climbed much, much higher. 

I've written extensively about climate refuge and the concerns of climate change that are favoring into home buying and real estate investment, but what about economic refuge? It's no surprise that the most popular relocation destinations are in some of the lower cost of living areas. 

The Top Ten lowest cost States for living in the US are:

1. Arkansas

2. Mississippi

3. Kansas

4. Indiana

5. Oklahoma

6. Iowa

7. Alabama

8. Tennessee 

9. Michigan

10. Iowa

The trend is towards the south or interior of the country, but what about those looking for Ocean friendly investment States and communities?

I've been actively searching for investable areas, with a long term view of reliable operating costs and proximity to the ocean or beach. My conclusion is that Oregon offers some of the most investor friendly coastal property operating expenses and value in the country. 

We recently put an offer in on a Riverfront cottage. It's a 1/1 with two car garage on a half acre composed of two Tax lots. The value is +/- $350k and the total flood and property insurance for the year is $490 + $1100 respectively. Using NOAA sea level rise forecast tool, even with a 10 foot increase (over 80 years) the property would be high and dry. Wildfire risk is also nearly non-existent close to the coast, and haven't yet heard of hurricanes or tornadoes, but you will notice a tsunami sign or two..

Electricity, water and general operating costs are surprisingly 'affordable.' For a 3/2 $1.25M oceanfront STR the most recent flood quote was around $3k per year..

How have returns been effected by housing inflationary pressures?