Oregon may be known for its forests, coastline, farm country, outdoor beauty, and fiercely local small businesses, but a new national business ranking paints a much less flattering picture of the state’s economic climate.

In CNBC’s 2026 “America’s Top States for Business” study, Oregon ranked 42nd out of 50 states overall, placing it in the bottom ten nationwide.

That category matters because a state can have great scenery, a strong lifestyle brand, and a skilled workforce, but if workers cannot afford to live there, it becomes harder for businesses to recruit and retain employees.

For many Oregon families, this is not abstract. Rent and home prices have been a major pressure point for years, especially in Portland, Bend, Eugene, Salem, Hood River, Ashland, and many coastal communities. Even in smaller towns, the cost of living has climbed sharply enough that longtime residents often feel squeezed.

That concern is not just theoretical. In recent years, Oregon has watched several familiar business names shift major operations, headquarters, or jobs elsewhere. Dutch Bros, one of the state’s most recognizable homegrown success stories, confirmed in 2025 that it was moving its official headquarters from Grants Pass to Phoenix, Arizona. Oregon also took another symbolic hit when Ralliant, the new public company built from Fortive’s precision technologies segment and including Tektronix, chose Raleigh, North Carolina for its headquarters. More recently, Under Armour announced it would close its Southwest Portland office and shift key roles to Baltimore and New York, dealing another blow to Portland’s long-running reputation as a footwear and athletic-apparel hub. The company says it still plans to keep a smaller presence in Portland, but for Oregon, the bigger point remains: headquarters, high-paying jobs, business activity, and future investment are moving elsewhere. For a state that once built a reputation around homegrown innovators, manufacturers, and independent businesses, these departures add weight to the larger question raised by the latest ranking: is Oregon still doing enough to keep the companies and jobs it helped create?

That makes Oregon’s low score in this category especially important. A high cost of living affects everyone, from nurses and teachers to restaurant workers, tradespeople, warehouse employees, young families, retirees, and small business owners trying to pay staff enough to keep up.

The CNBC ranking also comes shortly after another troubling national report for the Beaver State. As we recently reported, Oregon was also ranked among the worst states to move to in 2026, with affordability once again playing a major role. Taken together, the two rankings point to the same larger problem: Oregon remains a beautiful place to live, but it is becoming increasingly difficult for families, workers, and businesses to afford staying here.

Oregon Also Ranked Poorly For Business Friendliness

CNBC ranked Oregon 43rd for business friendliness, another category where the state landed near the bottom.

This category is especially important because it reflects how easy or difficult it is for companies to operate in a state. For Oregon, this ranking will likely fuel familiar debates over taxes, permitting, regulations, labor costs, land-use rules, and the overall relationship between government and employers.

A recent Portland debate over empty storefronts shows how complicated that environment can become in practice. As the city looked at whether to charge owners of long-vacant commercial spaces, the Portland Business Journal reported that an approximately $60,000 report found Oregon tax policy and constitutional limits created significant legal hurdles for a proposed charge on empty storefronts. The report also raised concerns that a vacancy fee could do more harm than good, adding another layer of cost or uncertainty at a time when many commercial districts are already struggling with weak demand, high costs, and empty retail space.

CNBC noted that for the first time in 2026, its study factored ease of permitting into the rankings. That change matters in Oregon, where housing, industrial development, energy projects, and infrastructure work often run into long timelines and complicated approval processes.

For businesses looking to move quickly, delays can be expensive. For small businesses, they can be overwhelming.

Critics of Governor Tina Kotek argue that her recent push to improve Oregon’s business reputation comes only after years of warning signs were allowed to pile up. Kotek has pointed to efforts like the Oregon Prosperity Council, streamlining regulations, targeted tax incentives, better workforce training, and faster permitting for major development projects as ways to make the state more competitive.

But skeptics say those proposals feel too small for a state now ranked near the bottom for business friendliness and cost of doing business. To them, Oregon’s problem is not a lack of advisory councils or new slogans about being “open for business,” but years of high taxes, heavy regulation, slow permitting, rising costs, public safety concerns, and policies that have made it harder for employers to stay, expand, or invest here in the first place.

Oregon’s Economy Ranking Remained Weak

Oregon ranked 39th for economy in the 2026 CNBC study.

CNBC’s economic profile for Oregon listed the state’s population at 4,273,586, GDP growth at 1.10% in the first quarter of 2026, and the unemployment rate at 5.20% in May 2026.

The study also listed Oregon’s top corporate tax rate at 7.60%, top individual income tax rate at 9.90%, and gasoline tax at 58.40 cents per gallon, including the federal gas tax.

Those figures help explain why Oregon continues to face questions about competitiveness. The state has valuable assets, including ports, agriculture, timber, tourism, advanced manufacturing, universities, outdoor recreation, and a strong creative culture. But the CNBC ranking suggests those strengths are not enough to offset concerns about costs and economic performance.

Oregon’s Stronger Categories Tell A Different Story

The report was not all bad news for Oregon.

CNBC ranked Oregon:

17th for infrastructure
18th for technology and innovation
22nd for quality of life
24th for workforce
27th for access to capital

Those are respectable showings, especially in infrastructure and technology. Oregon still benefits from its West Coast location, ports, transportation connections, renewable energy potential, semiconductor presence, outdoor lifestyle, and a workforce that remains attractive in many sectors.

The state also continues to hold appeal for people who value access to the outdoors, local food, strong communities, and a distinct culture that sets Oregon apart from many other places in the country.

But CNBC’s overall ranking shows that quality of life alone cannot carry the state when affordability and business costs are dragging it down.

Washington Ranked Much Higher Than Oregon

One detail that may sting for Oregonians is that Washington ranked 11th overall in the same CNBC study.

Washington had its own weaknesses, including ranking 47th for cost of doing business, 40th for business friendliness, and 41st for cost of living. But it performed much better overall because of stronger marks in economy, workforce, technology and innovation, and access to capital.

That comparison matters because Oregon and Washington compete for jobs, investment, workers, and business expansion in the Pacific Northwest. While both states face high costs, Washington’s stronger economy and tech-sector advantages helped keep it much closer to the top.

Ohio Took The Top Spot

At the top of CNBC’s 2026 list was Ohio, followed by North Carolina, Virginia, Texas, and Minnesota.

Ohio ranked first overall after strong performances in infrastructure and cost of doing business. CNBC said infrastructure was the top-weighted category in 2026, reflecting the growing importance of transportation hubs, utilities, water access, energy supply, advanced manufacturing, data centers, and permitting speed.

That shift in methodology is significant. States are no longer being judged only on traditional tax and workforce factors. They are also being measured on whether they can physically support modern business growth.

What The Ranking Means For Oregon

A national ranking is not the whole story of a state. Oregon is still home to hardworking entrepreneurs, family farms, local restaurants, independent shops, manufacturers, tech companies, tourism businesses, and creative workers who keep communities alive from Astoria to Ashland and from Ontario to Coos Bay.

But rankings like CNBC’s matter because they shape perception.

When Oregon lands at 42nd, that sends a message to employers, investors, site selectors, and policymakers. It suggests that while Oregon has real strengths, the state is becoming harder to afford, harder to operate in, and less competitive than many other parts of the country.

For residents, the findings may feel familiar. Many Oregonians do not need a national study to tell them that life has become more expensive, housing is difficult, and small businesses are under pressure. But CNBC’s ranking puts those concerns into a national context.

Oregon is not at the very bottom. But in 2026, it is much closer to the bottom than the top.

And for a state with Oregon’s natural beauty, talent, creativity, and potential, that should be a wake-up call.

Source: CNBC’s 2026 “America’s Top States for Business” study, published July 9, 2026. The study ranked all 50 states using 138 metrics across 10 categories of competitiveness.