The Fastest Growing Cities in Oregon For Real Estate Investors

For better or worse, Oregon has long been a popular moving destination. For years now, we’ve been one of the top states for inbound migration. Despite the pandemic, 2020 was no different, according to United Van Lines’ 44^th Annual National Migration Study. While our ranking dropped a bit (with Idaho coming in at #1), Oregon still placed at a respectable #3.

The reasons behind Americans’ moving patterns are of interest, too. Fewer Americans moved due to a job change in 2020, and more moved to be closer to family. Of those who moved and cited COVID-19 as a reason, top reasons included family health and wellbeing, proximity to family, lifestyle changes, and changes in employment – including the ability to work remotely.

No matter what changes as work and lifestyles adjust to our new normal, there’s no doubt that Oregon has a ton to offer! If you’re an investor, it’s pretty safe to say that Oregon provides great opportunities for a large return on your investment.

In which Oregon cities should you consider investing?

Bend

Located on the Deschutes River in central Oregon, Bend’s popularity has exploded since the last recession. With its vibrant city life, river access, proximity to hiking, biking and skiing in the Cascades, Bend has something for everyone.

According to a study by WalletHub, in fact, Bend was the second fastest-growing city in the country as of October 2020. Home values have followed suit, with values increasing 41% over the past year, with a typical home valued at over $700,000. As of September 2021, the median list price is at $689,000, trending up over 30% year-over-year.

COVID is no match for the allure of Bend. Despite a lack of inventory, home sales were strong during the pandemic. In fact, some experts believe Bend may be benefiting from the recent interest in urban flight. Interest is so strong in the area that Bend isn’t the only thriving city in Central Oregon. Whether Redmond, Sisters, Sun River, or Tumalo, Central Oregon provides smart investment opportunities thanks to its high demand and low inventory.

Portland

The largest city in Oregon, Portland has seen an incredible growth in real estate since the market exploded in 2012. Exciting investing opportunities started to arise in 2019 when the market cooled slightly. New home construction has dramatically slowed but demand is still strong – even during COVID-19 – thanks to Portland’s solid economy. If you’re looking to flip or rehab a regular detached home, there will be plenty of demand. Additionally, if you’re interested in multifamily properties, Portland may be a good option. After the multifamily market boomed in Portland for so long, the high prices have finally stalled, and more properties are available.

Happy Valley

Situated in Clackamas County, Happy Valley is just east of Portland with great access to recreation on the Clackamas River and Mt. Hood. It’s one of the fastest growing cities and one of the most desirable areas in Portland Metro. Not only is Happy Valley a great location for families seeking a slower pace but it’s perfect for those wanting to take advantage of outdoor recreation opportunities. It’s this high quality of life that has contributed to Happy Valley’s strong real estate market, even when the housing market fluctuates.

Salem

As the capital of Oregon, the Salem area has a steady real estate market. More affordable for the average family than Portland, Salem still experiences a lack of supply. Single-family homes and rentals provide a smart investment opportunity, especially given the area’s steady growth and economy. The area around Salem, the mid-Willamette Valley, is the top producer of agricultural products in the state. Given its prime location, Salem is top in the manufacturing and distribution industries. Nearly 30% of Salem’s workers are employed in government, whether state, local, or federal.

Eugene

Home to the University of Oregon and boasting easy access to outstanding natural areas, the bustling town of Eugene is an attractive location for a variety of people and families. Surrounded by wine country, lush forests, and farms, Eugene is known as a culinary destination thanks to its abundance of locally grown foods. Craft beer and wine aficionados also find plenty to appreciate. Those attracted to sports and the arts have a lot to love, too. The economy is stable as well, with its largest job sectors in education, healthcare, and technology. Overall, Eugene provides its residents with a high quality of life.

The population in Eugene is growing 2% annually with a total increase of over 14% since 2010. According to Realtor.com, in September 2021, the median list price was trending up over 14%, with a median sale price over $425,000.

Sandy

Located in the foothills of the Cascades, Sandy is often considered the gateway to Mt. Hood and all the recreation that it offers. Situated about 25 miles east of Portland, Sandy’s citizens enjoy a slower pace but can easily access the city when they desire. Sandy also serves as the retail and commercial hub for small towns in the area, such as Estacada and the villages around Mt. Hood. The appeal of this area is no secret since Sandy’s population has been rapidly growing. Between 2010 and 2020, Sandy’s population grew over 20% to reach 11,550 in 2021. As a result, Sandy’s housing market is considered very competitive. On average, the median home price is $460,000 and spends 15 days on the market.