What’s Driving Bend’s Real Estate Market in 2025?

Bend, Oregon, continues to be a magnet for homebuyers, investors, and businesses, and its real estate market reflects this demand. Understanding the factors propelling the market can help buyers, sellers, and investors make informed decisions. Here’s a look at the key drivers of Bend’s real estate market in 2025:

1. Quality of Life

Bend is renowned for its exceptional quality of life. The city offers:

• Access to Nature: Proximity to hiking trails, rivers, and Mount Bachelor.

• Outdoor Lifestyle: Opportunities for skiing, mountain biking, kayaking, and more.

• Vibrant Culture: A growing arts scene, breweries, and farm-to-table restaurants.

These features attract a wide demographic, from young professionals to retirees, ensuring sustained demand for housing.

2. Remote Work Revolution

With remote work becoming a permanent fixture for many industries, Bend’s appeal as a "Zoom town" has skyrocketed. Workers relocating from larger urban centers like Portland, Seattle, and the Bay Area are drawn to Bend’s:

• Affordable (by comparison) cost of living.

• Smaller-town feel with big-city amenities.

• Outdoor recreation opportunities right at their doorstep.

3. Strong Economic Foundations

Bend boasts a diverse and thriving economy with key industries, including:

• Tech and Startups: The growth of technology firms and remote startups.

• Tourism: A strong tourism sector fueled by outdoor recreation and breweries.

• Healthcare: A robust healthcare system with expanding services.

This economic vitality supports housing demand across different price ranges.

4. Influx of Retirees

Bend has become a top destination for retirees seeking:

• Mild climate and abundant sunshine.

• High-quality healthcare.

• Single-story or low-maintenance homes.

Retirees relocating to Bend bring financial stability and often pay cash for homes, driving competition in the market.

5. Limited Inventory and Land Use Regulations

Oregon’s strict land use laws restrict urban sprawl, making developable land scarce. This limited supply, coupled with high demand, continues to push prices upward.

• Builders face challenges like zoning restrictions and rising material costs, slowing new construction.

• The lack of inventory forces buyers to compete for existing homes, keeping prices high.

6. Migration Trends

Bend remains a destination for:

• Families seeking better schools and safer neighborhoods.

• Young professionals priced out of larger cities.

• Second-home buyers and investors.

Net migration into Central Oregon sustains demand, even in a cooling market.

7. Rising Interest in Sustainability

Eco-conscious buyers are drawn to Bend for its sustainability initiatives and access to renewable energy. Builders and developers are increasingly offering energy-efficient homes and green building practices to meet this demand.

8. Investor Interest

Bend’s short-term rental market has attracted investors who capitalize on the city’s popularity among tourists. However, tightening regulations and higher interest rates may temper this segment in 2025.

Bend’s real estate market in 2025 is driven by a mix of lifestyle appeal, economic growth, and migration trends. While challenges like rising mortgage rates and limited inventory persist, the city’s allure ensures continued interest from buyers and investors alike. Whether you're considering buying, selling, or investing, understanding these factors can help you navigate this dynamic market.

Thinking about making a move in Bend? Connect with a local expert to explore your options.

FAQs

1. Why is Bend’s real estate market so competitive?

Bend’s natural beauty, outdoor lifestyle, and small-town charm continue to attract buyers from across the country. Limited inventory, driven by land use regulations and high demand, keeps competition strong.

2. Are home prices in Bend expected to rise or stabilize in 2025?

While prices have shown signs of stabilizing in recent months due to rising interest rates, sustained demand from out-of-state buyers and retirees suggests moderate growth could resume.

3. How do mortgage rates impact Bend’s housing market?

Higher mortgage rates in 2025 have tempered some buyer enthusiasm, particularly among first-time homebuyers. However, cash buyers and retirees remain active, maintaining market strength.

4. What types of properties are most in demand?

Single-story homes, townhomes, and properties near recreational areas like hiking trails and the Deschutes River are particularly sought after. Homes with ADUs (Accessory Dwelling Units) are also popular for their rental potential.

5. Is Bend still affordable compared to larger cities?

While Bend’s home prices are high compared to other parts of Oregon, they remain relatively affordable compared to larger cities like Portland, Seattle, or San Francisco. Many buyers view Bend as a value proposition for the lifestyle it offers.

6. What areas of Bend are growing the fastest?

Neighborhoods like Southeast Bend and Northwest Crossing are seeing significant development. Additionally, nearby towns like Redmond and Prineville are experiencing growth due to their affordability and proximity to Bend.

7. Are there opportunities for investors in Bend’s market?

Yes, Bend remains attractive for investors, particularly in the short-term rental market. However, stricter local regulations and rising interest rates may require a more strategic approach.

8. Is now a good time to sell in Bend?

For sellers, 2025 could be an ideal time to list if they’re considering moving, as inventory levels are still relatively low. Well-priced, move-in-ready homes tend to sell quickly.

9. What is Bend doing to address housing affordability?

Efforts to increase affordable housing include rezoning, incentives for developers to build smaller homes, and expanding infrastructure in surrounding areas like Redmond and La Pine.

10. How does Bend’s population growth impact the housing market?

Bend’s steady population growth ensures ongoing demand for housing, which supports market stability and potential long-term appreciation for homeowners and investors.