The Future of ADUs in Central Oregon: What to Expect Beyond 2025

Accessory Dwelling Units (ADUs) are poised to play an even more significant role in Central Oregon’s housing landscape in the years ahead. As the region continues to grapple with housing demand, shifting zoning policies, and affordability pressures, ADUs offer a flexible, lower-impact way to increase density while preserving neighborhood character. Here’s what to watch for in the future of ADUs in Central Oregon (Bend, Redmond, Deschutes County, and beyond).

1. More Regulatory Flexibility & Increased ADU Approvals

• Two ADUs per lot: In 2025, Bend is considering allowing two ADUs on a single property — up from the current limit of one. Under the proposed rule, one unit could be up to 800 sq ft, and a second smaller unit capped at 500 sq ft. opb+1

• Streamlined permitting via design library: The Bend Chamber of Commerce has launched a design library of pre‑approved ADU plans to speed up permitting and reduce costs. The Bulletin

• Rural ADUs expanding: Thanks to Deschutes County’s new ADU rules (effective since December 2023), rural landowners on lots ≥2 acres can now build ADUs, expanding the potential housing stock in less dense, unincorporated parts of Central Oregon. Deschutes County+2Build A Du+2

• Clear & objective standards: Local changes (e.g., in Deschutes County) are aligning with state-level housing policy. For example, amendments tied to state law will clarify definitions, accessory uses, and dimensional standards for ADUs. Deschutes County

Implication: As regulations loosen, more homeowners may be incentivized to build ADUs, potentially driving a boom in small-scale infill development.

2. Cost Pressures & Affordability Dynamics

• While ADUs are a more affordable option compared to full-scale development, costs remain significant. According to a 2025 breakdown for Central Oregon, typical ADU build costs (for a detached, 600–800 sq ft unit) are $200,000–$300,000+, depending on finish level, utility work, and site conditions. Greg Powell

• Rising costs of labor, building materials, and site prep may challenge some homeowners, particularly those on rural lots with more complicated infrastructure needs (septic, well, access).

• On the flip side, as local governments streamline ADU permitting and offer pre-approved designs, some of the soft costs (time, design, permit) could decrease, making ADUs more financially accessible.

Implication: ADUs will remain a valuable tool in Central Oregon — but cost management (especially for smaller or rural lots) will continue to be a key factor in adoption.

3. ADUs as Part of the Housing Solution

• Addressing housing shortages: Local leaders are increasingly viewing ADUs as part of a broader strategy to add housing without expanding outward. Bend’s consideration to loosen ADU rules underscores how cities are embracing ADUs as a solution to their housing crunch. opb+1

• Workforce and multi-generational housing: With more ADU-friendly policies, these units could provide housing for essential workers, aging parents, or adult children — supporting both affordability and family flexibility.

• Sustainability and density: ADUs offer a relatively low-impact way to increase residential density. The future may see more compact, well-designed ADUs that align with sustainable development goals.

Implication: ADUs will likely remain a cornerstone of local housing policy in Central Oregon, helping to meet demand in a way that is both community-compatible and growth-oriented.

4. Risks and Challenges Ahead

• Wildfire risk and safety: Rural ADUs must meet strict fire-safety standards, especially in fire-prone regions. Compliance could raise costs and limit where ADUs are viable. (This is especially relevant in Oregon’s rural and forest-adjacent areas.)

• Infrastructure capacity: As more ADUs pop up, local utilities (sewer, water) could be stressed. Cities may require capacity studies or limit approvals in areas with infrastructure constraints.

• Long-term viability of second units: While ADUs are getting more popular, not all homeowners will want to maintain them, manage tenants, or deal with the regulatory upkeep. Some may convert them back or leave them unused, which could limit their effectiveness in addressing housing supply.

• Equity concerns: If ADUs continue to be expensive to build, they may primarily benefit homeowners with capital — potentially reinforcing housing inequality unless paired with incentives or affordability programs.

5. Design Innovation & Pre-Approved Solutions

• The growth of the pre-approved ADU design library in Bend is a significant development. It allows homeowners to pick from designs that are already reviewed by the city, reducing permit risk and accelerating construction. The Bulletin

• We may see more modular, prefab, or tiny-home ADUs as builders respond to demand for cost-effective, high-quality units.

• Green and energy-efficient ADUs will likely become more prevalent, with features like solar panels, efficient insulation, and compact footprints tailored to Central Oregon’s climate.

Implication: Design innovation will help drive down costs and remove barriers to entry, making ADUs more accessible and attractive.

Looking beyond 2025, ADUs in Central Oregon are set to become even more central to housing strategy. With evolving regulations, design innovation, and growing acceptance at both city and county levels, ADUs have strong potential to:

• Expand access to affordable, flexible housing

• Support multi-generational living and workforce homes

• Increase density without sacrificing community character

However, challenges remain — especially around cost, infrastructure, and wildfire risk. For homeowners and developers, the key will be navigating these trends smartly: leveraging pre-approved designs, staying informed on regulatory changes, and building responsibly.

FAQs

1. Will Bend really allow two ADUs per lot?

Possibly. Proposed rules in 2025 could permit two ADUs per property: one up to 800 sq ft, and a smaller second unit up to 500 sq ft. The Bulletin+1

2. Are ADUs now allowed in rural Deschutes County?

Yes. As of December 2023, Deschutes County allows ADUs on rural residential lots (≥ 2 acres), per new county rules. Deschutes County+1

3. How will the cost of building ADUs change going forward?

While construction costs remain high ($200K–$300K+ for typical detached ADUs), streamlined permitting, pre-approved designs, and regulatory flexibility could help bring down the “soft” costs (design, permit). Greg Powell+1

4. Will wildfire risk impact future ADUs?

Yes — especially in rural or forested parts of Central Oregon. ADUs in high-risk areas may need to meet stricter fire-safety requirements, which can increase cost and restrict where they can be built.

5. Are ADUs likely to remain a policy priority in Central Oregon?

Very likely. ADUs are increasingly seen as a critical piece in solving the region’s housing shortage, especially as cities like Bend relax restrictions and rural counties open up to ADU development.