Portland business interests are increasingly concerned that low- and middle-wage workers can't afford to live near their jobs.

The Portland Business Alliance on Tuesday released a report detailing the declining share of middle-wage jobs across the region. In Portland and most other metro areas, low- and high-paying jobs are growing relatively quickly -- while jobs in the middle struggle to gain traction.

And income is less disparate in Portland than in similarly sized cities like Cincinnati, Sacramento and St. Louis. But the relatively higher cost of living here -- driven primarily by the cost of housing -- means middle-class families here have less buying power.

Particularly in the city of Portland, that's pushed workers to the fringes and away from the enclaves of middle-wage jobs, many of which cluster along the Columbia and Willamette rivers.

"Middle income jobs in Portland are declining at the same time as housing is become more expensive," said Sandra McDonough, president of the Portland Business Alliance. "Where are the workers going to be? At some point, there has to be real thoughtfulness about workforce housing."

The report was compiled by the Portland economic consulting firm ECONorthwest on behalf of the Portland Business Alliance and a handful of other industry groups.

They found that few areas of close-in Portland are accessible to households making less than $70,000 a year, and most of the metro area has grown less affordable over the last decade. Rising interest rates would put those homes even further out of reach.

"Wages are flat and the region's costs are growing," said John Topanga, president of ECONorthwest.

That's a concern for existing businesses trying to attract and retain workers, McDonough said, as well as out-of-town companies considering whether to bring some of their workforce to the Portland area.

"Employers really do think about these kinds of things for their employees," McDonough said. "They look at the housing stock here."

Part of the answer, the Portland Business Alliance says, is to promote new job creation. The group said it would also advocate for incentives to build workforce housing.

It also says policymakers should avoid making decisions that could increase the cost of housing. McDonough cited proposed increases in development fees and regulatory restrictions on development.

"It's not all about trying to constrain housing prices. I don't know how you do that," McDonough said. "But really being thoughtful about job creation in the middle, and creating that pathway for people to move from lower- and middle-income jobs to higher-income jobs."

-- Elliot Njus

enjus@oregonian.com

503-294-5034

@enjus

This post has been updated with additional comment from the Portland Business Alliance.