Central Oregon has long been a sought-after destination for homebuyers and investors, thanks to its beautiful landscapes, outdoor lifestyle, and vibrant communities. As we look ahead to 2025, several key trends are expected to shape the region’s real estate market. Whether you’re considering buying, selling, or investing, understanding these trends can help you make informed decisions and seize opportunities.
In this post, we’ll explore the top real estate trends to watch for in Central Oregon in 2025 and how they may impact the market.
1. Continued Growth in Remote Work
One of the biggest drivers of Central Oregon’s real estate market in recent years has been the rise of remote work. As more companies continue to embrace flexible work arrangements, Central Oregon’s appeal as a destination for remote workers is expected to remain strong in 2025. The region offers the perfect balance of access to nature, high quality of life, and small-town charm, making it an attractive option for professionals seeking to escape larger, more expensive urban centers.
This ongoing influx of remote workers will likely continue to fuel demand for homes, particularly in areas like Bend, Redmond, and Sisters, where outdoor activities and lifestyle amenities are plentiful.
What to Watch For:
- Homes with dedicated office spaces and strong internet connections will remain highly desirable.
- Expect increasing demand in more rural areas of Central Oregon as remote workers seek larger properties and more privacy.
2. Sustained Demand for Vacation and Second Homes
Central Oregon’s status as a year-round destination for outdoor recreation will continue to drive demand for vacation and second homes. From skiing at Mt. Bachelor in the winter to hiking and biking in the summer, the region attracts visitors looking for a getaway—and many of them decide to buy property.
As tourism continues to grow, the short-term rental market will also expand, creating opportunities for investors to purchase vacation homes for rental income. The trend of extended stays, driven by the rise in remote work, will further boost this market segment.
What to Watch For:
- Vacation properties and second homes in popular areas like Sunriver, Black Butte Ranch, and along the Deschutes River will continue to appreciate.
- Investors seeking rental income will need to keep an eye on local regulations regarding short-term rentals, especially in Bend and other tourist-heavy areas.
3. Increased Focus on Sustainable and Green Homes
Sustainability is becoming a key factor in the real estate market, and this trend is expected to accelerate in Central Oregon. Buyers are increasingly looking for homes with energy-efficient features, sustainable building materials, and eco-friendly designs that minimize their environmental impact. With its reputation for outdoor living and eco-conscious residents, Central Oregon is poised to see a rise in demand for green homes.
In addition to individual green features, entire communities may focus on sustainability, incorporating energy-efficient infrastructure, solar power, and water conservation measures. Builders and developers in the region are already responding to this trend, and 2025 will likely see even more emphasis on sustainable construction.
What to Watch For:
- New developments featuring sustainable home designs and eco-friendly amenities.
- Growing demand for homes with solar panels, energy-efficient appliances, and water-saving technologies.
4. Rising Home Prices and Affordability Challenges
Like many areas across the U.S., Central Oregon has experienced rising home prices over the past few years, driven by strong demand and limited inventory. This trend is expected to continue into 2025, particularly in Bend and other high-demand areas. While the market remains attractive to buyers, especially those relocating from higher-cost regions, affordability is becoming an increasing concern for local residents.
The affordability challenge may push some buyers to look beyond Bend to more affordable markets such as Redmond, Prineville, and La Pine. Additionally, new construction and development in these areas could help ease the supply crunch and offer more affordable housing options.
What to Watch For:
- Continued upward pressure on home prices in Bend, especially in highly desirable neighborhoods.
- Increased buyer interest in more affordable surrounding areas like Redmond, Prineville, and La Pine.
5. Increased Development in Surrounding Areas
As home prices in Bend continue to rise, developers are turning their attention to surrounding areas that offer more space and lower land costs. Cities like Redmond, Prineville, and La Pine are seeing new residential developments, bringing a mix of single-family homes, townhomes, and apartments to the market.
This expansion is helping to meet the growing demand for housing while also providing more affordable options for buyers who may be priced out of Bend. With Central Oregon’s population continuing to grow, 2025 is likely to see even more development in these surrounding communities.
What to Watch For:
- Growth in new residential developments in Redmond, Prineville, and La Pine.
- Increasing infrastructure and amenities in these surrounding areas to support the growing population.
6. Luxury Market Growth
Central Oregon has always had a strong luxury market, but in recent years, the demand for high-end homes has skyrocketed. Buyers are drawn to the region’s blend of outdoor activities, scenic beauty, and upscale amenities, particularly in golf course communities and resort-style developments.
In 2025, we expect the luxury market to continue growing, with demand for homes that offer privacy, spacious lots, and proximity to outdoor activities. Homes with modern amenities, smart technology, and luxury finishes will remain in high demand, particularly among out-of-state buyers.
What to Watch For:
- Increased demand for luxury homes in areas like Tetherow, Pronghorn, and Broken Top.
- Rising prices for high-end properties as the market for luxury homes remains competitive.
7. Multi-Generational Living and Home Design
Another trend gaining momentum in Central Oregon is multi-generational living. With rising home prices and changing family dynamics, many families are opting to live together under one roof. This shift is driving demand for homes with flexible layouts, such as dual master suites, in-law units, or separate living areas that can accommodate extended family members.
Builders and developers are responding to this demand by creating homes with versatile floor plans that cater to multi-generational living, making it easier for families to share space while maintaining privacy.
What to Watch For:
- New home designs with separate living spaces or accessory dwelling units (ADUs).
- Increased interest in larger homes that accommodate multiple generations.
Conclusion: What to Expect in Central Oregon’s Real Estate Market in 2025
The Central Oregon real estate market will continue to evolve as remote work, sustainability, and rising home prices shape the landscape. Buyers and sellers should keep an eye on these key trends as they navigate the market in 2025. Whether you’re looking to buy a home, invest in a vacation property, or sell in this competitive market, Strategic Realty can provide the guidance you need to make the right decisions.
If you’re ready to explore opportunities in the Central Oregon real estate market, contact Strategic Realty today. Our team of local experts can help you stay ahead of the trends and find the perfect property for your needs.