Too Little, Too Late? Bend Races to Solve Its Housing Shortage

Bend, Oregon, long celebrated for its natural beauty, recreational access, and growing economy, is now facing a pressing challenge: not enough homes—and not enough time. With surging demand, limited inventory, and rising construction costs, the city is in a housing crunch that’s pushing local leaders to rethink policies and accelerate change.

But is it too little, too late?

🔺 Housing Demand Has Outpaced Supply

Over the past decade, Bend’s population has ballooned. Families, retirees, remote workers, and investors alike have been drawn to Central Oregon's charm. But the city's housing supply hasn’t kept up. As a result, home prices have skyrocketed, rentals are scarce, and middle-income families are feeling the squeeze.

In June 2025, the median home price in Bend hovered just above $720,000—well out of reach for many first-time buyers and essential workers. And with fewer homes hitting the market and high interest rates adding pressure, many locals are wondering how long they can afford to stay.

🏗️ Bend’s Response: Zoning Changes & ADU Expansion

To tackle the issue, the City of Bend has been implementing changes. Recent policy shifts aim to:

• Increase allowable ADUs (Accessory Dwelling Units) on single-family lots.

• Relax parking requirements and reduce red tape for permitting.

• Encourage historic and high-density infill in core neighborhoods.

• Streamline approval processes for new developments and subdivisions.

While these are steps in the right direction, builders and advocates argue that the process is still too slow—and that supply simply can’t catch up with the speed of demand.

🧱 Construction Costs & Labor Shortages

Another roadblock: building new homes isn’t cheap. High material costs and a shortage of skilled labor have delayed projects and driven up prices. Even developers eager to contribute to the solution face timelines and budgets that make affordable housing a challenge.

Some projects have been shelved altogether. Others have pivoted toward luxury builds, where profit margins are more attractive—further limiting options for average-income residents.

👪 Who's Being Left Behind?

The housing shortage isn’t affecting everyone equally. Teachers, healthcare workers, and young families are finding it nearly impossible to live near where they work. Many have relocated to outlying areas like La Pine, Prineville, or Redmond—commuting long distances just to remain connected to Bend.

For renters, the situation is just as dire. Vacancy rates remain low, and monthly rents have steadily increased, with limited tenant protections available.

🏡 A Turning Point—or a Missed Opportunity?

With more voices—from city council members to real estate experts—calling for aggressive change, 2025 could be a turning point for Bend. But it will require coordinated action: faster approvals, public-private partnerships, and meaningful investments in infrastructure and affordability programs.

Without bold moves, Bend risks becoming a destination only the wealthy can afford—a reality that would reshape the city’s culture, workforce, and long-term future.

✅ Key Takeaways:

• Inventory is low, and home prices remain high in 2025.

• Policy changes are in motion, but implementation is slow.

• Middle-income families and essential workers are being priced out.

• Community support and political will are essential to solving the crisis.

FAQs: Bend’s Housing Shortage

❓ Why is Bend facing a housing shortage?Bend’s population growth has outpaced the construction of new homes. A combination of limited land availability, zoning restrictions, and high construction costs has created a mismatch between supply and demand.

❓ What is the city doing to address the issue?

A: The City of Bend is working to relax zoning laws, allow more accessory dwelling units (ADUs), and streamline the permitting process to make development easier. There’s also a push to encourage higher-density housing in established neighborhoods.

❓ Who is most impacted by the housing crisis?

A: Middle-income families, first-time buyers, renters, and essential workers like teachers and healthcare professionals are among those hit hardest. They’re increasingly priced out of the city and forced to live farther from their workplaces.

❓ Are new homes being built in Bend?

A: Yes, but not quickly enough. Labor shortages, high materials costs, and permitting delays have slowed construction. Some developers are focusing on luxury housing, which doesn’t address the affordability gap.

❓ Is it still a good time to buy or invest in Bend?

A: While affordability is a challenge, Bend remains a strong long-term market due to its lifestyle appeal and growth potential. If you’re considering buying or investing, it's smart to explore your options and secure expert guidance.

❓ How can I stay informed about housing changes in Bend?

A: Follow city council updates, track new development proposals, or subscribe to local housing newsletters. If you're serious about buying or selling, connect with a local real estate professional for tailored insight.