Are Home Values Rising Faster Than Wages Again?

The question on every homebuyer’s mind in 2025: Are home values rising faster than wages again? Unfortunately for many Americans — including those in Central Oregon — the answer is yes. Home prices have continued to climb at a faster pace than income, even as wage growth has ticked up modestly.

In Bend, Redmond, and Prineville, this growing gap between what people earn and what homes cost is reshaping what “affordable housing” means and making it harder for new buyers to enter the market.

Let’s break down the data, what it means for Central Oregon buyers and sellers, and how you can navigate this challenging real estate landscape.

The National Picture: Home Prices Outpacing Income Growth

According to recent housing data, owning a home now consumes roughly 32% of the average U.S. wage, up from 31% last year. Over the last few decades, home prices have grown over 400%, while median incomes have risen just around 240%.

Even though mortgage rates have eased slightly in 2025, housing affordability hasn’t improved much — because home values continue to rise faster than paychecks.

However, there’s a twist: while prices are still rising, the pace of growth has slowed in many parts of the country. In some markets, appreciation has nearly stalled, but prices remain historically high.

Central Oregon Spotlight: Bend, Redmond, and Prineville

In Central Oregon, the affordability squeeze is even more noticeable.

• Bend continues to attract remote workers, retirees, and investors, keeping demand high and supply tight. The median home price here is still well above $700,000, while local wages lag behind.

• Redmond, once the affordable alternative, has seen steady growth — with median home prices hovering around $520,000 in 2025.

• Prineville offers more affordability, with homes averaging closer to $400,000, but even there, price appreciation has outpaced local wage growth.

In short: while income levels have improved slightly in Central Oregon, the cost of homeownership is rising faster — particularly when you factor in taxes, insurance, and maintenance.

Why This Matters for Buyers

When home values rise faster than wages, affordability shrinks. Buyers must stretch their budgets further, or they get priced out altogether. This can also:

• Limit your buying power

• Increase competition for lower-priced homes

• Push more families into renting rather than owning

For those already owning homes, this can be good news — rising values mean increased equity. But for first-time buyers, it’s an uphill battle.

What Sellers Should Know

If you’re thinking of selling in 2025, this dynamic can still work in your favor — but timing is key.

Sellers benefit when demand is strong, but as affordability declines, fewer qualified buyers may enter the market. That means pricing your home strategically (and not just optimistically) will matter more than ever this year.

How to Navigate the 2025 Market

• For Buyers: Get pre-approved and know your limits. Consider areas like Prineville or outlying Redmond neighborhoods where you can still find relative value.

• For Sellers: Highlight energy efficiency, upgrades, and lifestyle perks that appeal to buyers who must justify higher prices.

• For Investors: Watch wage growth trends closely — rental markets often follow the same affordability pressures.

Yes — home values are rising faster than wages again in 2025, both nationally and in Central Oregon. The pace may have slowed, but affordability challenges remain real for everyday buyers.

Whether you’re buying or selling, the key is to stay informed, watch wage trends in your area, and work with a local real estate expert who understands the market’s shifting dynamics.

FAQs

Q: Does faster home-price growth always mean a good investment?

A: Not necessarily. If wages don’t keep up, fewer people can afford to buy later — which could slow appreciation.

Q: Should I wait to buy until wages catch up?

A: That depends. Waiting could mean missing out if prices or rates rise again. Focus on affordability, not just timing.

Q: What’s the outlook for Central Oregon?

A: Bend may stabilize, while Redmond and Prineville continue moderate appreciation. Wage growth remains slower than housing growth, keeping affordability a key issue.