Is Land a Safer Investment Than Housing Right Now?

In today’s shifting real estate market, many buyers and investors in Central Oregon are asking an important question: Should I invest in land instead of a home? With fluctuating mortgage rates, rising insurance costs, and climate risks influencing housing markets, land can feel like a simpler, safer play. But is it? Let’s break it down.

Why Some Investors Are Turning to Land

Unlike a home, raw land doesn’t require maintenance, repairs, or tenant management. For investors wary of market volatility, land offers:

• Lower upfront costs (depending on location)

• Fewer ongoing expenses (no roof repairs or broken water heaters)

• Flexibility for future use (build later, subdivide, or sell to developers)

• Scarcity factor – they aren’t making more land in desirable areas like Bend, Redmond, or Sisters

Housing Investment: The Other Side of the Coin

Investing in residential property still has clear advantages:

• Immediate cash flow if rented

• Tax benefits (mortgage interest deductions, depreciation)

• Appreciation plus utility – you can live in it, rent it, or sell it

• Easier financing compared to land loans, which often require higher down payments

Risks to Consider

Land Investment Risks

• Carrying costs: Property taxes, HOA fees, and possible land maintenance

• Limited financing options: Land loans typically require 20–50% down

• No cash flow: Until developed or sold, land sits idle

• Zoning & restrictions: What you can do with land depends heavily on county rules

Housing Investment Risks

• Market cycles: Home values can dip in slower economies

• Insurance hikes: Especially in wildfire-prone areas of Central Oregon

• Maintenance & management: Homes come with ongoing costs and time commitments

• Tenant risk: If rented, vacancy and property damage can cut into returns

Central Oregon Trends: Land vs. Housing

• Land demand is growing in areas like Tumalo, La Pine, and Sisters, especially from buyers wanting custom homes or investment parcels.

• Housing supply remains tight in Bend and Redmond, meaning homes are still appreciating—just at a slower pace than during the pandemic boom.

• Financing gap: Homes are easier to finance, while raw land often requires cash-heavy buyers.

Which Is Safer Right Now?

• If you want long-term holding with lower maintenance, land may be the safer bet—especially in Central Oregon where open space is increasingly limited.

• If you’re looking for shorter-term returns, rental income, and easier financing, housing remains a stronger play.

The safest strategy may be a blend of both—owning a home for stability and purchasing land as a future-proof investment.

In 2025, both land and housing investments in Central Oregon have merit. Land offers a lower-maintenance, long-term play, while homes deliver faster appreciation and income opportunities. The best choice depends on your timeline, budget, and risk tolerance.

FAQs

Q: Is buying land in Central Oregon a good investment?

Yes, especially in growing areas like Redmond and Sisters. Land is finite, and as the region grows, demand typically increases.

Q: Is land cheaper than buying a house right now?

Usually, yes. Raw land often requires a smaller purchase price but may come with financing hurdles and no immediate return.

Q: Can I get a loan for land?

Yes, but expect stricter terms—higher interest rates and larger down payments than traditional home mortgages.

Q: Which appreciates faster: land or homes?

Homes generally appreciate faster because they offer immediate utility and cash flow potential. Land can appreciate significantly in growth areas but often takes longer.

Q: What’s the biggest risk with land?

Zoning and development restrictions. Always research county regulations before buying.