Investment Potential: Buying Lots in Central Oregon for the Long Term

In a market where home prices have leveled and construction costs are high, a quieter but strategic play is gaining traction: buying land as a long-term investment.

While lots may not generate immediate income, they offer a compelling blend of appreciation potential, flexibility, and scarcity—especially in a region like Central Oregon, where developable land is limited and demand remains strong.

📊 Why Consider Investing in Lots in 2025?

1. Scarcity is Increasing

Central Oregon, particularly in areas like Bend, Redmond, and Sisters, is facing a tightening inventory of buildable land. As population growth continues and zoning becomes more restrictive, demand for land is expected to outpace supply—a classic formula for rising values.

2. Low Carrying Costs

Unlike rental properties, vacant lots typically come with:

• Lower property taxes

• Minimal maintenance

• No tenant issues

This makes them an attractive, low-effort asset to hold while you wait for values to rise.

3. Zoning Flexibility for Future Development

Some lots—especially in unincorporated or transitional areas—offer the flexibility to build:

• A single-family home

• A duplex, triplex, or ADU

• A tiny home or cabin retreatSavvy investors are identifying parcels with future development potential, even if they're not ready to build today.

4. Land Banking as a Strategy

We’re seeing more individuals and small investors “land bank” in growth corridors like:

• Southeast Bend

• South Redmond

• La Pine (near future industrial and rail development)

• Tumalo and Powell Butte (desirable for rural living with acreage)

These areas may not yield a quick flip—but over a 5–10 year horizon, they’re positioned for strong appreciation.

🧠 Investor Tip:

“Buy land. They’re not making any more of it.”This age-old wisdom holds especially true in Central Oregon, where UGB (Urban Growth Boundary) limits mean expansion is tightly controlled. Strategic land buys now could yield major upside later.

Buying a lot may not have the instant gratification of a rental property—but for investors thinking long-term, Central Oregon land is a limited, strategic, and potentially lucrative asset.

Whether you're planning to build, hold, or resell down the line, now is the time to explore land investment opportunities before prices catch up with housing demand.

Looking to invest in land around Bend or beyond? I’d be happy to help you evaluate options that align with your timeline and goals.

FAQ

Q: Is land a good investment in a flat or cooling market?

A: Yes, because land appreciates based on location and scarcity, not just short-term market cycles. It’s a patient investor’s play.

Q: Can I finance a lot purchase?

A: It depends on the lender. Some offer land loans with higher down payments (20–50%). Cash purchases are more common for smaller parcels.

Q: How do I know if a lot is buildable?

A: Key factors include zoning, access to utilities, septic feasibility, slope, and city/county requirements. A local agent or land-use consultant can help vet lots.

Q: What areas in Central Oregon have good long-term potential?

A: South and east Bend, outer Redmond, and parts of Crook and Jefferson counties offer more affordable prices and are poised for growth.

Q: What are the risks of buying land?

A: Major risks include purchasing land that isn’t buildable, overpaying in speculative zones, or holding for too long without appreciation. Due diligence is crucial.