Bend, Oregon, has long been a sought-after destination for homebuyers, investors, and outdoor enthusiasts alike. With its rapid growth and vibrant economy, Bend’s real estate market remains active, despite fluctuating economic conditions nationwide. As we approach 2025, several trends are expected to shape the local housing market, influencing buyers, sellers, and investors.
In this post, we’ll explore the key real estate trends that will impact Bend, Oregon, in 2025, and what they mean for anyone looking to buy or sell a home in the area.
1. Home Prices Are Expected to Continue Rising
Bend’s popularity and limited housing inventory have driven steady increases in home prices over the past decade. While price growth is expected to slow compared to the rapid surge of previous years, experts predict that home values will continue to rise in 2025.
With high demand and limited space for new development, neighborhoods close to downtown, such as Old Bend and River West, are likely to remain some of the most expensive. However, more affordable homes may still be found in East Bend and newly developed communities.
What This Means for Buyers:
- Act quickly if you find a home that fits your budget.
- Consider looking in more affordable areas like Mountain View or surrounding towns such as Redmond.
2. Demand for New Construction and Modern Homes
In response to limited inventory, new developments are continuing to pop up on the outskirts of Bend. Buyers are increasingly drawn to homes that feature modern designs and energy-efficient technologies. Developments like Northwest Crossing and Summit West offer newer homes with contemporary features and sustainable building practices.
These newer homes often come with higher price tags, but the long-term benefits—such as lower energy costs and modern amenities—appeal to today’s buyers.
What This Means for Sellers:
- Upgrading your home with modern features can help it stand out in a competitive market.
- New developments may offer opportunities to purchase homes with the latest design trends.
3. Increasing Interest in Remote Work-Friendly Homes
Bend has become a hub for remote workers, drawn by the city’s scenic beauty and access to outdoor activities. As remote work becomes more common, many buyers are looking for homes with dedicated office spaces, high-speed internet, and proximity to coffee shops and coworking spaces.
The shift toward remote work also means more people are relocating to Bend from larger cities, fueling demand for housing in areas that offer both amenities and tranquility.
What This Means for Buyers:
- Homes with extra rooms or office space will likely be in higher demand.
- Properties near coworking spaces, like those in downtown Bend, may carry a premium.
4. Growing Popularity of Luxury Homes and Resort Living
Luxury homes and resort communities, such as those in Tetherow and Pronghorn Resort, are expected to remain in high demand in 2025. With buyers relocating from high-cost metropolitan areas, these communities are attracting those looking for high-end amenities, privacy, and stunning mountain views.
Luxury buyers are particularly interested in homes with smart technology, outdoor living spaces, and proximity to golf courses and ski resorts.
What This Means for Sellers:
- If you own a high-end property, the market for luxury homes is expected to remain strong.
- Consider marketing homes with resort-style amenities to attract buyers from outside the region.
5. Rising Mortgage Rates Impacting Affordability
One of the most significant challenges in 2025 will be the impact of rising mortgage rates. As interest rates increase, monthly mortgage payments also rise, which can reduce affordability for many buyers. This trend may result in fewer buyers entering the market or lead to buyers choosing more affordable properties.
While Bend’s desirability will keep demand steady, higher rates could slow the pace of sales, particularly for homes at the upper end of the market.
What This Means for Buyers:
- Get pre-approved for a mortgage to lock in the best possible rate.
- Consider working with a local lender who understands the Bend market and can offer competitive financing options.
6. Strong Demand for Vacation Rentals and Second Homes
Bend continues to attract buyers looking for vacation properties and second homes. With its proximity to skiing, hiking, and the Deschutes River, Bend offers year-round recreation that appeals to buyers seeking a getaway. Additionally, vacation rental income is a strong motivator for investors, especially as platforms like Airbnb and VRBO remain popular.
However, stricter regulations on short-term rentals in Bend could limit new vacation rental investments. Buyers will need to stay up to date on local ordinances to ensure compliance.
What This Means for Investors:
- Check Bend’s short-term rental regulations before purchasing an investment property.
- Consider properties in nearby towns like Sunriver or Redmond, where regulations may be less restrictive.
7. Increased Interest in Sustainable and Green Homes
Sustainable building practices and energy-efficient homes are becoming increasingly popular in Bend. Buyers are drawn to homes with eco-friendly features such as solar panels, smart thermostats, and water-efficient landscaping. With environmental awareness on the rise, green homes are expected to be in high demand in 2025.
Communities like Northwest Crossing and The Highlands at Broken Top are already incorporating sustainable building practices, and more developments are expected to follow.
What This Means for Buyers:
- Look for homes with energy-efficient features to save on utility costs.
- Green-certified homes may offer long-term value and appeal to future buyers.
8. Continued Growth in Surrounding Areas
As home prices in Bend continue to rise, more buyers are turning to surrounding towns like Redmond, La Pine, and Prineville for affordable housing options. Redmond, in particular, is experiencing significant growth, with new developments and an expanding economy.
These nearby communities offer a more affordable alternative to Bend while still providing easy access to the region’s outdoor activities and amenities.
What This Means for Buyers:
- Explore surrounding areas for more affordable housing options.
- Keep an eye on Redmond’s growth for potential investment opportunities.
Conclusion: A Competitive Market with New Opportunities
The Bend, Oregon real estate market is expected to remain competitive in 2025, driven by continued demand, limited inventory, and a desirable lifestyle. Whether you’re a first-time buyer, an investor, or someone looking to relocate, understanding the market trends will help you make the most of your real estate journey.
If you’re ready to explore homes in Bend or surrounding areas, Strategic Realty is here to help. Our team of experienced agents can guide you through the buying or selling process and help you find the perfect property to fit your needs.