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Old Bend's Housing Paradox: Rising Home Values and Increasing Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Old Bend, a historic neighborhood in Bend, Oregon, has experienced significant changes in its real estate landscape over the past decade. This area, known for its central location and charm, has seen notable shifts in homeownership rates and property values. From 2013 to 2022, average home prices in Old Bend more than tripled, rising from $287,350 to $952,139. During this period, homeownership rates fluctuated, with a remarkable increase from 35% in 2019 to 49% in 2020, despite rising home prices. This trend persisted through 2022, suggesting that factors such as low interest rates and local economic conditions may have encouraged homeownership despite rapidly appreciating home values.
Federal interest rates have played a crucial role in shaping homeownership trends in Old Bend. From 2013 to 2020, historically low interest rates, ranging from 0.09% to 0.38%, likely contributed to sustained homeownership levels despite rising home prices. The sharp increase in homeownership from 35% in 2019 to 49% in 2020 coincided with interest rates dropping from 2.16% to 0.38%, potentially making mortgages more affordable and spurring home purchases.
Renter percentages and average rent prices in Old Bend have shown distinct trends. In 2013, with 69% of residents renting, the average rent was $956. As the renter percentage decreased to 65% in 2016, average rent increased to $1,353. By 2021, despite a further decrease in the renter percentage to 55%, average rent surged to $1,643. This suggests that even with fewer renters, demand for rental properties remained strong, potentially due to population growth or changes in the local job market.
In 2023 and 2024, Old Bend's real estate market showed signs of stabilization after years of rapid growth. The average home price in 2023 was $893,869, representing a slight decrease from the 2022 peak. In 2024, prices marginally increased to $899,436. This trend coincides with higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially cooling the housing market.
Looking ahead, predictive models suggest that Old Bend's real estate market may experience moderate growth over the next five years. Average home prices are forecasted to increase by approximately 2-3% annually, potentially reaching around $1,025,000 by 2029. Average rent prices are expected to follow a similar trajectory, with projected annual increases of 3-4%, potentially reaching $1,900 by 2029. These projections assume relatively stable economic conditions and gradual adjustments in interest rates.
In summary, Old Bend has demonstrated resilience and attractiveness in its housing market. The neighborhood has seen substantial increases in both home values and rental prices over the past decade, with homeownership rates showing remarkable growth despite rising prices. The interplay between federal interest rates, local economic factors, and housing demand has shaped a dynamic real estate landscape in this historic Bend neighborhood.
