Is Buying a Smaller Home in a Prime Location Smarter Than a Big One Farther Out?

If you’re shopping for a home in Central Oregon — from Bend to Redmond to Sisters — you’ve probably faced this dilemma:

“Should I buy a smaller home in a great location, or a bigger house with more space a little farther out?”

It’s a question of lifestyle, investment, and long-term value — and the “right” answer depends on what matters most to you.

The Case for a Smaller Home in a Prime Location

Buying smaller in a desirable neighborhood — close to amenities, schools, and employers — can be one of the smartest long-term investments you can make.

🏙️ Benefits

• Higher Appreciation: Desirable locations tend to grow in value faster, especially near downtown Bend or the Old Mill District.

• Walkability & Lifestyle: Access to restaurants, trails, and shops adds daily quality of life and future resale appeal.

• Easier to Maintain: Less space means lower utility bills, fewer repairs, and less upkeep.

• Stronger Resale Demand: Even during market slowdowns, buyers continue to prioritize location.

⚠️ Considerations

• Less Space: You may have to compromise on storage or yard size.

• Higher Price per Square Foot: You’ll pay more for location, not size.

The Case for a Bigger Home Farther Out

If your priority is space — for family, hobbies, or home-based work — buying outside the core area can offer great value.

🌲 Benefits

• More Home for the Money: In areas like Redmond, La Pine, or Powell Butte, you can get significantly more square footage for the same budget.

• Privacy & Land: Larger lots mean more outdoor space, quiet, and flexibility for ADUs, RV parking, or workshops.

• Potential for Growth: As Central Oregon expands, today’s “outskirts” can become tomorrow’s hot spots.

⚠️ Considerations

• Longer Commutes: Driving into Bend or Redmond can add up, especially in winter.

• Higher Maintenance: Bigger homes cost more to heat, cool, and furnish.

• Slower Appreciation: Rural or fringe areas tend to appreciate more slowly — though they may be more stable in downturns.

Central Oregon Market Perspective

• Bend: Premium neighborhoods (like Northwest Crossing or Midtown) continue to appreciate faster than the outskirts.

• Redmond: Offers the best mix — larger homes and land with growing amenities and new development.

• Prineville & La Pine: Great options for buyers prioritizing size and space, especially if remote work makes location flexible.

If your goal is long-term appreciation and strong resale value, a smaller home in a prime location often wins. But if you’re focused on space, privacy, and lifestyle, a bigger home outside the core can offer exceptional quality of life — especially in Central Oregon’s scenic outlying towns.

FAQs

Q: Is location always more important than size?

A: Not always — if your lifestyle requires more space or you plan to stay long-term, a larger home can make more sense.

Q: Which has better resale value — small in a prime area or big in a rural one?

A: Historically, homes in prime locations appreciate faster and sell more easily.

Q: What about energy costs?

A: Smaller homes typically cost less to heat and cool, making them more affordable month-to-month.

Q: Are buyers in Central Oregon still prioritizing location post-pandemic?

A: Yes — proximity to outdoor recreation, walkable areas, and good schools are still top drivers of value.