Are you looking to invest your money in Bend Oregon homes for sale in 2022? If your answer is yes, you came to the right place.
Table of Contents
- Oregon Housing Market 2021-2022
- Bend Oregon Real Estate Market in 2021-2022
- Why Invest in Bend Oregon Homes for Sale?
- Best Neighborhoods to Invest in Bend Oregon Homes for Sale
- Verdict: Is It Worth Investing in Bend Oregon?
In recent years, Bend Oregon experienced significant inflation in property prices. However, real estate investors here are still finding themselves making a considerable income from their properties.
Although the Bend, Oregon investing environment may not be conducive for first-time homebuyers, the demand is slowly shifting towards rental properties. It is growing at the same rate as inflation.
In today’s article, we want to talk about the state of the real estate market, how to find Bend Oregon homes for sale, and suggest a rental strategy for you to pursue.
Oregon Housing Market 2021-2022
Before we look at the state of the Bend real estate market, we need to understand what the Oregon real estate market looks like. The condition of the larger market affects that of the smaller one.
Currently, the Oregon real estate market is seeing different trends, from global events such as the COVID-19 pandemic to more localized ones such as shifts in demand and availability of housing.
In 2021, Oregon experienced high demand but low inventory for most of the major population areas. Interestingly, smaller cities and suburbs also saw the same rise in demand. It was the effect of the pandemic, which saw many people wanting to move out of the cities in search of larger spaces. Remember, many people were also able to work remotely.
In December 2021, the median property price in Oregon was $550,000, up 13% from the previous year. It is a sign of just how much you can expect the property prices in Oregon to keep increasing.
The Oregon housing market trends in the past year were more pronounced. According to Mashvisor, the average property price in the state is now $668,747. The figure represented a rise of about 21.5% compared to December last year. As a result, rental prices also went up last year.
What can real estate investors expect in 2022?
Before we look at the housing market forecast, make sure you sign up at Mashvisor to access this data and start your 7-day free trial.
Oregon Housing Market 2022 Forecast
Property prices in Oregon are increasing due to high demand but limited inventory. In 2022, you can expect the inventory to open up since most owners are waiting for significant changes similar to the ones that happened in 2020 and 2021. You can expect the conditions to stabilize as the negative effects of the pandemic subside. Things will begin to look more normal.
However, Oregon is expected to remain a seller’s market since the demand for housing is still high. It creates a ripple effect on the rental market. Since some of the potential buyers may not be able to purchase their homes, they’ll choose to rent. It means there’ll be a continued demand for rental properties.
So, will the market bubble pop?
While the market will stabilize, housing prices will continue to rise, though at a slower pace than in the last two years.
Bend Oregon Real Estate Market in 2021-2022
After a remarkable second half in 2020, the Bend Oregon real estate market literally caught fire in 2021. Like many cities, the influx of Bend residents moving in came as a result of the COVID-19 pandemic. The drastic rise in property prices was a result of high demand, low inventory, and bidding wars. In fact, the levels experienced were unseen before.
As of December 2021, the median property price in the Bend housing market was $774,860, which was a 26% increase from the previous year. On the other hand, the homes for sale in Bend Oregon listings were down by 27% to 444 units. You can clearly see why home prices kept rising.
Bend Oregon Housing Market Predictions 2022
The first few months in the year are quite essential in shaping how the rest of the year will play out. In 2022, real estate buyers in Bend will continue to see low inventory. Construction companies and professionals in the city will continue to face difficulties keeping up with the demand due to a shortage in building materials supply.
According to how we see things, investment property demand will stay high and result in another competitive market due to the low inventory.
The local housing market will also continue to see a high barrier to entry, especially for first-time homebuyers. As a result, Bend Oregon homes for sale may spend more days on market than they did a year ago.
Why Invest in Bend Oregon Homes for Sale?
We’ve looked at the state of Bend, Oregon real estate market and 2022 forecasts and predictions. However, one question still lingers; is it worth investing in the Bend housing market?
To delve deeper into the topic, we’ve divided the following section into two categories:
Pros of Investing in Bend Oregon
Let’s start with some of the reasons why you shouldn’t miss out on such an excellent investment opportunity:
1. Tourism in the City
About two decades ago, Bend was on the decline and the real estate market was weak. However, tourism later helped it recover. The city is now considered a hub for outdoor attractions, and tourism now accounts for 16% of the jobs in the city. Tourists and adventure seekers now flock to Bend hoping to indulge in hiking, mountain biking, golfing, rock climbing, fishing, and skiing, among many other activities.
Many of the activities can be done in a single day. It creates a strong demand for rental properties since landlords can rent their investment property in Bend OR out to vacationers who want a place to retire after the day. Travelers may prefer such a setup as it’s more affordable compared to hotel rooms.
2. Stable Vacation Rental Market
As a real estate investor, you may choose to invest in Bend Oregon homes for sale for the sole reason of turning your property into a vacation rental. Fortunately, the practice is now legal in the city. All you need to do is adhere to the Airbnb Bend Oregon ordinances and obtain the right permits and licenses. Here is a quick overview of some Bend Oregon Airbnb ordinances:
- All Airbnb hosts must obtain a short-term rental (STR) operating license. The application fee is $280.
- Hosts must renew their STR license annually at a fee of $205.
- For the STR license to qualify for renewal, the property must be used for at least one night during the 12-month licensed period.
- All short-term rental owners are required to pay Room Tax Remittance on a monthly or quarterly basis, depending on the amount of income received.
Below, we’re going to look at some top neighborhoods for short-term rentals in Bend, Oregon.
Bend is more ideal for the Airbnb business, unlike other Oregon cities, such as Portland, that threaten crackdowns on Airbnbs with the hope of increasing the number of rental units in the area.
3. Growing Job Market
The job market in Bend, Oregon increased by 2.6% in the past year. The growth rate in the next decade is expected to hit 57.7%. Just to paint a rough picture of how vital it is, the future job growth rate in the US in ten years is expected to be 33.5%. It means Bend, Oregon is growing at a faster pace than the average city in the US.
It’s been amazing watching Bend transition from a small logging town to one of the fastest-growing economies in the country. The city is home to many hospitals, schools, and even breweries.
A fast-growing economy is a huge indicator that residents can afford the cost of living and rental rates. Being an educational and medical hub, the students and professionals working in the industries will need a place to live. Prospective investors and landlords can take advantage of the housing demand and invest in Bend Oregon homes for sale.
Cons of Investing in Homes for Sale Bend Oregon
The biggest disadvantage of investing in Bend Oregon may be the cost of living. With the high home prices that are almost twice the national average, the city may not be affordable to the average real estate investor.
However, it may be a pro or a con depending on your perspective and where your tenants may be coming from. If your tenants are moving in from more expensive nearby cities, say Seattle, San Francisco, or San Diego, the cost of living may be a positive.
Also, consider that the fast-growing economy and the availability of jobs mean that most of the Bend residents can afford to live in the city.
Best Neighborhoods to Invest in Bend Oregon Homes for Sale
When investing in any real estate market, you must go through some processes to nail down your investment and buy profitable property. Some of the processes include market and property analyses. One important aspect investors forget to consider is looking at the best rental strategy to follow to buy investment properties.
Mainly, there are two rental strategies:
- Traditional rental strategy. It is the most common rental strategy. Also referred to as the long-term strategy, the traditional rental strategy involves a landlord finding long-term tenants who lease the investment property for a long period, say a minimum of six months. Many landlords prefer this rental strategy since it provides them with a consistent stream of income from the monthly rental payments.
- Short-term rental strategy. Also referred to as vacation rental strategy, it involves leasing your property to guests for a minimum of one night. Guests prefer such a mode of accommodation since it may be cheaper than hotel accommodation. For investors, the short-term rental strategy may be ideal in some cases since it can provide a higher rental income.
You can use Mashvisor to compare potential income from either a traditional rental strategy or an Airbnb rental strategy using metrics such as cash on cash, cap rate, and cash flow.
Now that we’ve seen what the rental strategies are, which is the best place to buy rental property in Bend Oregon? Let’s look at the best neighborhoods for both rental strategies. We’ve ranked the neighborhoods based on cash on cash return and cap rate, which are return on investment metrics.
5 Best Bend Neighborhoods for Short-Term Rentals
Here are the five best neighborhoods to invest in Airbnb Bend Oregon. The list below is based on Mashvisor’s latest data:
1. Southern Crossing
- Number of Listings for Sale: 12
- Median Property Price: $827, 108
- Average Price per Square Foot: $413
- Days on Market: 58
- Number of Airbnb Rental Listings: 268
- Monthly Airbnb Rental Income: $5,725
- Airbnb Cash on Cash Return: 5.04%
- Airbnb Cap Rate: 5.11%
- Airbnb Daily Rate: $198
- Airbnb Occupancy Rate: 69%
- Walk Score: 39
2. Old Farm District
- Number of Listings for Sale: 13
- Median Property Price: $895,631
- Average Price per Square Foot: $440
- Days on Market: 582
- Number of Airbnb Rental Listings: 35
- Monthly Airbnb Rental Income: $5,156
- Airbnb Cash on Cash Return: 4.06%
- Airbnb Cap Rate: 4.11%
- Airbnb Daily Rate: $247
- Airbnb Occupancy Rate: 62%
- Walk Score: 13
3. Larkspur
- Number of Listings for Sale: 15
- Median Property Price: $656,060
- Average Price per Square Foot: $403
- Days on Market: 26
- Number of Airbnb Rental Listings: 81
- Monthly Airbnb Rental Income: $$4,067
- Airbnb Cash on Cash Return: 3.88%
- Airbnb Cap Rate: 3.93%
- Airbnb Daily Rate: $186
- Airbnb Occupancy Rate: 61%
- Walk Score: 32
4. River West
- Number of Listings for Sale: 13
- Median Property Price: $1,014,138
- Average Price per Square Foot: $552
- Days on Market: 27
- Number of Airbnb Rental Listings: 274
- Monthly Airbnb Rental Income: $5,504
- Airbnb Cash on Cash Return: 3.42%
- Airbnb Cap Rate: 3.46%
- Airbnb Daily Rate: $208
- Airbnb Occupancy Rate: 70%
- Walk Score: 82
5. Orchard District
- Number of Listings for Sale: 11
- Median Property Price: $837,945
- Average Price per Square Foot: $456
- Days on Market: 61
- Number of Airbnb Rental Listings: 250
- Monthly Airbnb Rental Income: $4,088
- Airbnb Cash on Cash Return: 3.39%
- Airbnb Cap Rate: 3.44%
- Airbnb Daily Rate: $191
- Airbnb Occupancy Rate: 59%
- Walk Score: 57
3 Best Bend Neighborhoods for Traditional Rentals
Let’s now look at the top three neighborhoods to buy Bend Oregon homes for sale for the traditional rental strategy.
1. Southeast Bend
- Number of Listings for Sale: 21
- Median Property Price: $909,940
- Average Price per Square Foot: $377
- Days on Market: 60
- Number of Traditional Listings: 3
- Monthly Traditional Rental Income: $2,219
- Traditional Cash on Cash Return: 1.31%
- Traditional Cap Rate: 1.32%
- Price to Rent Ratio: 34
2. Three Rivers
- Number of Listings for Sale: 17
- Median Property Price: $1,087,059
- Average Price per Square Foot: $459
- Days on Market: 292
- Number of Traditional Listings: 2
- Monthly Traditional Rental Income: $2,177
- Traditional Cash on Cash Return: 1.09%
- Traditional Cap Rate: 1.11%
- Price to Rent Ratio: 42
3. Mountain View
- Number of Listings for Sale: 32
- Median Property Price: $806,891
- Average Price per Square Foot: $432
- Days on Market: 53
- Number of Traditional Listings: 10
- Monthly Traditional Rental Income: $1,580
- Traditional Cash on Cash Return: 0.82%
- Traditional Cap Rate: 0.83%
- Price to Rent Ratio: 43
Verdict: Is It Worth Investing in Bend Oregon?
We’ve looked at the state of the housing market in Oregon and the data revolving around Bend Oregon homes for sale. As you can see based on Mashvisor data, investing in short-term rentals in the city makes more financial sense. In addition, the various tourism activities will ensure you experience a strong occupancy rate throughout the year.
While the decision to invest ultimately lies on your shoulders, Mashvisor is here to help you and walk with you throughout your journey. Schedule a demo with us to learn more about the different tools we offer.