In Multnomah County, a third of households struggle to afford their basic needs. The county’s rate of poverty has increased faster than its population. And when the county’s poverty level is examined through the lens of race, the disparities are even worse, a report by a volunteer panel of low-income people, elected officials and community leaders found.

The report, released Tuesday, painted a dire picture of local families’ ability to afford housing, food, transportation and healthcare. And it highlighted stark differences in the experiences of people with low versus high incomes during Portland’s recent economic growth.

In 2017, Portland had the 10th highest median household income of any major U.S. city, up from 17th in 2010, and it experienced the fourth-fastest increase in household income over that period, according to the report. But while wealthier Multnomah County residents -- those making $100,000 per year or more -- have experienced the greatest rise in income, others have seen little increase, according to the report.

Portland’s economic boom has had little positive influence on the harsh economic realities that 34% of families living in the area now face, according to the report. And the racial disparities are striking: There is a clear overrepresentation of people of color among the impoverished.

Some members of the panel that wrote the report, the Multnomah County Commission for Economic Dignity, addressed the Multnomah County Commission Tuesday.

“The demographics of poverty in Multnomah County reveal deep disparities,” Kris Smock, principal consultant on the report, told the commissioners. “These inequalities undermine the social fabric of our community and threaten the county’s long-term economic stability.”

The commission decided to make only sparing use of the standard federal poverty line -- an income of just over $25,000 for a family of four -- to examine wealth distribution. To qualify for support programs for low-income families, a family typically must make 185% of the federal poverty level or less, about $47,000 dollars for a four-person family. But Smock said that is often an inaccurate way to measure poverty, Smock said.

“It's an outdated measure that significantly undercounts the number of people experiencing poverty,” Smock said. “Many people with incomes above this threshold are still unable to meet their basic needs.”

Instead of considering just the federal poverty level, the commission also used something called a self-sufficiency standard. That standard is based on in-depth analysis of household expenses, adjusted by geography and family type, Smock said.

Measured that way, a Multnomah County household of four -- two adults, a toddler and an infant -- needs an income of a little more than $89,000 to meet its basic needs, Smock said.

By that standard, an estimated 261,793 people -- 34% of the county -- are living in poverty, according to the report.

Using data from the American Community Survey collected in 2013 to 2017, the report also found that:

About 238,000 county residents -- 31% -- live below 185% of the federal poverty line, qualifying for the county’s key anti-poverty safety net programs.

About 16%, 127,000 people, meet the federal definition of poverty with incomes below the federal poverty line.

About 8%, or 59,000 people, are living in what is called deep poverty, with incomes at half the federal poverty line. That number has grown by 85 percent in the last 19 years, according to the report.

Smock said that more disconcerting than the large number of struggling families is how many of them are families of color. Just about 30% of the county’s residents are people of color, yet they comprise almost half -- 47% -- of the 260,000 people experiencing poverty. The county’s black families experience poverty at a rate of more than twice the rate of the county’s white families.

The report also shows a clear movement of impoverished families to the outskirts of Portland, with the highest percentage of low-income families living east of Interstate 205, Smock said.

Commissioner Lori Stegmann remarked on the displacement of communities of color from their historic neighborhoods, including black families being pushed out of North Portland amid an influx of wealth and skyrocketing rents.

But Commissioner Susheela Jayapal said that while many have been displaced, it’s also clear that people of color still live throughout the city and that the county should look for ways to prevent further displacement. “If we ignore the fact that they're still there, if we treat that process of displacement as done, then I think we end up -- it just becomes a self fulfilling prophecy,” she said. Keeping communities of color where they are “is a big part of building community stability,” she said.

“This is about community stability,” Jayapal said. “It is not about some of us helping others of us, it is about doing what's necessary for the whole community to survive and thrive and be stable.”

About 31% of the county's children of color are in poverty, compared with 11% of white children.

National research shows growing up in poverty can permanently affect children's cognitive development, educational attainment and long-term physical and mental health, Smock said.

“30% of our youth 18 to 24 are in poverty and thinking about what that means for the future I think is really sobering,” Jayapal said.

Steve Weiss, member of the panel that wrote the report, said the county is not alone in its poverty crisis -- poverty rates are increasing around the U.S. But he pointed to a clear need for affordable housing in Multnomah County. About 40% of the county’s households and 54% of renters are “housing cost burdened,” meaning they spend more than 30% of their income on housing, according to the report.

“For those who are on the edge -- they are being pushed over the edge,” Commissioner Sharon Meieran said. “And for those who are already over the edge, they’re being ground into the dirt. And we need to take action.”

-- Emily Goodykoontz; 503-221-6652; egoodykoontz@oregonian.com