Problem Solvers: Investigating why Bend and Redmond are seeing record sky-high housing prices
(Update: Adding video)
CENTRAL OREGON [KTVZ] -- Central Oregon's housing market continues to evolve. It presents both challenges and opportunities.
Affordability and supply, remain at the forefront of concerns.
According to Rocket, in Bend, the median home list price reached $899,000, in April 2025. That's a 14.5% increase from 2024.
What follows is Redmond, with a median price of approximately $500,000.
These rising prices, coupled with mortgage rates between 6% and 7%, make homeownership a challenge for many.
In Bend, prices are also rising because of the type of 'buyers,' said Principal Broker, Lynnea Miller of Bend Premier Real Estate.
“Believe it or not, we have a lot of people who are buying homes in the million-dollar price point - $2 million price point, who are cash buyers. It depends on where they're from, and so, our feeder markets typically are from the Bay Area. We steal from the Bay Area. We have a lot of people who have a lot of money moving into this area. and so that's also driven our prices up. With a median home price of $830,000 it's not affordable for the average person. They just can't afford this town.”
Another reason: Miller says, as of the date of this report, Bend only has four months of housing supply, indicating a seller’s market.
Another main factor driving up housing costs: Developer fees.
“You're not trying to sit back and negate, like I said, the intent behind people introducing these new codes, because again, everybody loves trees. We want to live in a place that has a lot of trees. We want to live in places that the roads are nice. We want to live in places that the landscaping looks beautiful,” said Jason Myhre, Chief Communications Officer, with Pahlisch homes.
Myhre added: “It's very inviting so, we all want to live in those places, and Development wants to continue to develop those, places. But, it's just trying to look at, again, are we continuing to add layers? And if so, it's obviously going to affect, time and cost and, which then just gets passed on to the end consumer with the finished product.”
Myhre also points out, we have to move away from finger-pointing on who’s responsible for the higher cost of building a home, as it’s a collaborative effort between your City and the Developer.
So, what can you do as a consumer, to express your concerns over exorbitant fees and ultimately change the outcome?
Reach out to your local City Council, as ‘they’ adopt the methodologies for System Development Charges (SDCs); fees paid by developers to help fund infrastructure for new growth.
What about the folks who make normal working-class wages, but are not able to attain home ownership, like first-time home buyers?
There are programs out there that can help, said Scott Nordquist, Vice President of Resource Development, of Bend-Redmond Habitat for Humanity.
“What we do with Bend-Redmond Habitat for Humanity is we provide pathways to homeownership for regular working-class Oregonians. So, our typical home buyers are folks who make 25, $30 an hour. Our buyers might have a mortgage of, you know, $1300, $1400, $1500, and then a few years from now, they still have that mortgage, so, as their wages continue to go up, they really have a foundation for stability, and a mortgage that they can afford.”
Take a look at Bend-Redmond Habitat for Humanity’s Qualifications Guide.
The minimum annual income range to qualify for a home is $35,000 to $56,720.
If you’re not quite ready to become a homeowner, what are your rental options?
That’s coming up in part ii of our Problem Solvers report.
As Central Oregon navigates these housing challenges, the collaboration between policymakers, developers, and the community will be crucial in fostering a more balanced and inclusive market.
KTVZ News will continue to monitor these developments and provide updates on efforts to enhance housing affordability and availability in the region.
