Build or Buy in Bend? What’s More Affordable in 2025?

As Central Oregon continues to grow and evolve, many buyers—especially first-timers and relocators—are wondering:

Is it cheaper to build a home in Bend or buy an existing one?

With rising prices, low inventory, and limited developable land, the answer isn’t one-size-fits-all. But let’s break it down.

💸 Buying an Existing Home: The Current Market

In Bend and surrounding areas, the average price per square foot for an existing home in 2025 ranges between $275 and $350, depending on age, location, finishes, and condition.

✅ Pros:

• Move-in ready

• Quicker closing and possession

• Financing is simpler (conventional loan)

• Potential for negotiating with motivated sellers

❌ Cons:

• Limited inventory (especially under $600K)

• May require compromises on style, layout, or updates

• Competing buyers can drive prices up

🛠️ Building a New Home in 2025: What You’re Facing

The cost to build in Bend right now averages $300 to $450+ per square foot—and that’s before you buy the land. Construction costs are being driven up by labor shortages, rising material prices, and increasingly complex permitting processes.

✅ Pros:

• Total control over layout, finishes, energy efficiency

• Newer systems = fewer repairs for years

• Can build with resale in mind

❌ Cons:

• Land in Bend is expensive ($150K–$500K+)

• Permits and city fees can add $20K–$50K+

• Build time can stretch 12–18 months

• Construction loans are more complex to secure

📉 Why It’s Often Cheaper to Buy Right Now

While building might seem like a better long-term investment, buying is generally the more affordable short-term option in Bend right now. Unless you already own land or have highly specific needs, most buyers save money—and time—by purchasing an existing home.

That said, for some, building is worth it:

• If you’re designing your “forever home”

• If you want rental income via a custom ADU

• If you already own a lot and want to maximize its use

Decision Driver	Better Option
Budget & Affordability	Buy Existing
Customization	Build New
Short Timeline	Buy Existing
Long-Term Investment	Build or Buy Smartly

Whether you're deciding between a fixer-upper in town or a custom build on acreage, both paths can be smart—depending on your priorities.

FAQs

Q: How much does it cost to build a house in Bend in 2025?

A: On average, building costs range from $300 to $450+ per square foot, depending on materials, finishes, and contractor rates. Don’t forget to factor in land costs, permits, and potential delays.

Q: Is land still available in Bend?

A: Yes—but inventory is limited and prices are high. Many buildable lots are on the outskirts of town or in outlying communities like Tumalo, La Pine, or Redmond.

Q: Are new construction homes a better investment long-term?

A: They can be. New homes often include energy-efficient features, which save money over time. You also avoid the costly repairs often needed in older homes.

Q: What are the hidden costs of building a home?

A: Site prep, utility hookups, design fees, and rising interest rates on construction loans can add tens of thousands to your budget. Unexpected delays or code changes can increase costs too.

Q: Is buying a fixer-upper cheaper than building from scratch?

A: Often, yes—especially if you’re willing to do some upgrades yourself. Many first-time buyers in Bend are choosing homes that need work, then renovating over time.

Q: Can I finance a new build the same way I’d finance a traditional home?

A: Not exactly. You’ll need a construction loan, which has a more involved approval process and usually higher interest rates during the build phase. Once the home is complete, it converts into a traditional mortgage.

Q: Should I build or buy if I want to move in quickly?

A: Buy. Even a smooth build can take 10–18 months. If you’re on a tight timeline or want to avoid temporary housing, buying an existing home is typically the better route.