Bend has long been one of the fastest growing cities in Oregon—but with surging demand and limited inventory, it has also become one of the most expensive places to find or buy a home. Here’s how to get the most for your money in Bend, Oregon.
Is Investing in Real Estate Still the Way to Go?
Market prices have been trending north since the turn of the recession—and with the Federal Reserve hiking up interest rates by 0.25% it doesn’t look like that will be changing any time soon.
Home prices have risen by 5.9% over the past twelve months, and in places like Bend, Oregon where job growth hit 6.6% last year (a nationwide record), demand for housing is driving real estate prices sky high -and often higher than annual wage growth can afford.
That hasn’t stopped Bend buyers from seeking out affordable housing. Bend’s population has been growing by 3% annually, prompting many to opt out of real estate investment by pricing 37.1% of the market out of homeownership. With homeownership at its lowest in more than half a century, it’s time to question whether or not real estate is still the way to go.
Building a Custom Home Is More Cost Effective Than Buying Real Estate
None of this is to say that investing in property isn’t still a good idea. To the contrary, there are several investors who are continuing to profit in this so-called seller’s market. But they are doing things a little bit differently: they are building their own homes.
Land sells for a fraction of the cost of traditional real estate properties, and building a custom home on it can be far more cost-effective than investing in an existing one. Even though real estate costs are high, builder’s costs are still low, making the overall cost of the home lower than market prices. With a custom built home you receive an end-product of your own design—one that you can cherish for years or sell for a profit.
As real estate developer Guy Burtt points out, “You can have more significant profits with the resale of your new home.” New homes save both time and money, as they require less maintenance and fewer repairs. Custom homes are also more efficient and have fewer health concerns than older homes which make them cheaper, more sustainable, and healthier to live in.