Oregon falls to No. 42 in CNBC business ranking

July 10, 2026 - 19:36

Oregon has fallen further away from Governor Tina Kotek's stated goal of cracking the top 10 in national business rankings, landing at No. 42 in CNBC's latest annual scorecard. The new position marks a drop of two spots from last year, continuing a downward trend that has seen the state slide from a high of No. 18 in 2019.

The ranking evaluates states across 10 categories, including workforce, infrastructure, cost of doing business, and quality of life. Oregon's lowest marks came in housing affordability and business costs, two issues that have plagued the region for years. The state also struggled in the "economy" category, where high inflation and a tight labor market have strained employers.

Governor Kotek, who took office in 2023, has made improving Oregon's business climate a central priority. She previously set a target of reaching the top 10 in such rankings by the end of her first term. However, the latest results suggest the state is moving in the opposite direction. "We have work to do," Kotek said in a statement following the release. "I am committed to cutting red tape, increasing housing supply, and making Oregon more competitive."

Oregon did score well in the "access to capital" category, ranking 11th nationally, thanks to a robust venture capital scene in the Portland metro area. But that bright spot was overshadowed by poor marks in cost of living and regulatory environment. Neighboring Washington ranked 12th overall, while Idaho came in at 20th.

Business groups in Oregon have long called for reforms to land use laws and tax policies, arguing that the state's regulatory framework discourages expansion. The ranking is likely to intensify pressure on state lawmakers to address these concerns before the next legislative session.