Best Real Estate Investment Opportunities in Central Oregon in 2025

Central Oregon’s real estate market is attracting investors from across the country. With growing populations in Bend, Redmond, Prineville, and surrounding areas, rising home prices, and a strong rental demand, 2025 presents several opportunities for savvy investors. If you’re considering putting your money into real estate in this region, here’s what you need to know.

Why Invest in Central Oregon?

Central Oregon offers a unique combination of scenic beauty, outdoor recreation, and economic growth. Factors that make it an attractive investment destination include:

• Population growth – Bend and Redmond continue to see steady population increases, fueling housing demand.

• Strong rental market – With many newcomers renting before buying, rental properties generate consistent cash flow.

• Tourism appeal – Proximity to ski resorts, rivers, and hiking trails supports short-term rental opportunities.

• Affordability compared to coastal cities – Investors can purchase properties at lower prices than in Portland or Seattle while still benefiting from strong appreciation potential.

Top Real Estate Investment Opportunities in 2025

1. Single-Family Rentals

Single-family homes in Bend, Redmond, and Prineville remain a strong investment for rental income. Families and remote workers moving to Central Oregon are driving steady demand for homes under $500,000 in Redmond and the outskirts of Bend.

Why it works:

• Consistent rental income

• Lower tenant turnover compared to apartments

• Appreciation potential as housing inventory remains tight

2. Vacation and Short-Term Rentals

Properties near Mount Bachelor, Smith Rock, and the Deschutes River are perfect for short-term rentals. Platforms like Airbnb and Vrbo allow investors to capitalize on Central Oregon’s thriving tourism market.

Tips for success:

• Ensure properties comply with local short-term rental regulations

• Focus on well-located, high-demand areas near outdoor recreation

• Professionally stage and manage properties for higher occupancy

3. Multi-Family Units

Multi-family buildings in Redmond and Bend provide diversified rental income and can be easier to finance with higher cash flow potential.

Benefits:

• Economies of scale in property management

• Ability to generate multiple income streams from one property

• Higher return on investment in growing urban areas

4. Land and Development Opportunities

With Central Oregon’s growth, investing in undeveloped land in the outskirts of Bend or near Prineville can offer long-term appreciation or opportunities to build rental homes or vacation properties.

Key considerations:

• Check zoning and development regulations

• Assess utility access and infrastructure costs

• Factor in holding costs until development

Emerging Trends in Central Oregon Real Estate

1. Remote Work Migration – Many tech and remote workers are relocating to Bend and Redmond, increasing housing demand.

2. Eco-Friendly Developments – Energy-efficient and sustainable homes are becoming more appealing to buyers and renters.

3. Short-Term Rental Popularity – Vacation rentals remain lucrative in high-traffic tourist areas.

Central Oregon offers diverse and profitable real estate investment opportunities in 2025, from single-family rentals and multi-family units to vacation properties and land development. Whether you’re a first-time investor or expanding your portfolio, understanding local market trends, regulations, and rental demand is essential to maximize your returns.

✅ Tip: Work with a local real estate agent familiar with Bend, Redmond, and Prineville to identify properties that match your investment goals.

FAQs

Q: Is Bend the best city for real estate investment?

Bend offers strong appreciation potential and high rental demand, but prices are higher. Redmond and Prineville offer more affordable entry points with solid returns.

Q: Are short-term rentals legal in Central Oregon?

Yes, but regulations vary by city. Check local rules, including permits and occupancy limits.

Q: How much should I budget for property management?

Professional property management typically costs 8–12% of monthly rental income, depending on the services provided.

Q: Are land investments risky?

Land can appreciate significantly, but it requires careful research on zoning, utilities, and infrastructure access.