Land Availability in Bend: The Shrinking Supply of Buildable Lots

Bend, once known for its wide-open spaces and development potential, is facing a new reality in 2025: a serious shortage of buildable lots. As the city grows and demand remains high, the availability of undeveloped land within Bend’s urban growth boundary (UGB) is steadily declining—impacting builders, investors, and homebuyers alike.

Let’s break down what’s happening, why it matters, and what buyers and developers should expect moving forward.

The Decline in Lot Inventory

Over the past decade, Bend has experienced rapid population growth, driven by its outdoor lifestyle, remote work appeal, and reputation as one of the most desirable small cities in the West. But that growth comes with a cost:

• Most prime infill parcels are already spoken for.

• New subdivisions are pushing the limits of the UGB.

• Land-use regulations make it time-consuming and costly to rezone or annex new parcels.

As a result, builders are now competing fiercely for fewer available lots—driving up land prices and delaying new home construction.

🛠️ Impact on Builders and Buyers

For homebuilders:

• Higher land costs = higher home prices

• Longer permit processes due to more complex land-use scenarios

• Smaller lot sizes as developers squeeze more homes into shrinking spaces

For buyers:

• New construction homes cost more and are harder to come by

• Custom home building may require purchasing land outside Bend

• Renovating existing homes becomes a more viable (and affordable) alternative

🌄 The Push Beyond Bend

With limited inventory within city limits, developers are increasingly looking at surrounding areas like:

• Redmond (growing rapidly with more available land and slightly lower prices)

• La Pine and Terrebonne (offering larger lots and more rural appeal)

• Tumalo and Sisters (higher-end rural markets with unique zoning challenges)

This shift is reshaping where and how people live in Central Oregon. Commutes may get longer—but access to land and views could be worth it.

🧭 What Could Help?

• Urban Growth Boundary expansions: The city of Bend may eventually expand its UGB again to accommodate more development—but that process can take years and faces political and environmental hurdles.

• ADU incentives: Smaller-scale infill strategies like Accessory Dwelling Units (ADUs) could relieve pressure without requiring new land.

• Zoning flexibility: Allowing duplexes, triplexes, or cottage clusters on existing lots could increase density without sprawl.

If you're hoping to build in Bend, now is the time to understand just how limited the land supply has become. Whether you're a buyer, investor, or builder, being flexible on location and open to creative solutions—like ADUs, smaller footprints, or nearby towns—can help you navigate this increasingly tight market.

Want to explore available land or development opportunities in Central Oregon? Let’s connect.

FAQs

Q: Why is land so expensive in Bend now?

A: Demand is high, and supply is limited. Between zoning restrictions, high desirability, and slow expansion of buildable areas, land values have surged.

Q: Are there still any lots available inside Bend?

A: Yes, but they’re limited, often in higher-end neighborhoods or small infill parcels. Most large-scale development is moving to the outskirts or neighboring cities.

Q: Can I buy land and build a custom home?

A: You can—but it often makes more financial sense to look in outlying areas like Redmond, Powell Butte, or La Pine for available land and fewer restrictions.

Q: Will Bend expand its Urban Growth Boundary again?

A: Possibly. The last UGB expansion was in 2016. Another is being discussed, but it’s a multi-year process with many legal and environmental considerations.

Q: Should I buy land now or wait?

A: If you find a lot in a good location at a reasonable price, it may be wise to act. Land in Central Oregon is only becoming scarcer—and more valuable—over time.