Redmond Oregon Housing & Rental Market Report — May 2026
Redmond, Oregon
Housing & Rental
Market Report
A comprehensive analysis of single-family and multifamily sales, rental conditions, development activity, and investment outlook for Redmond's residential market.
The State of Redmond's Market — May 2026
Redmond's housing market in May 2026 tells a nuanced story: a market in deliberate recalibration rather than decline. After two years of post-pandemic elevation, median sale prices have softened to $482,000 — down 9.5% year-over-year — yet price per square foot is rising to $324, driven by strong activity in sub-$450K homes. Days on market have dropped to just 29 days, the fastest pace since 2022, and well-priced homes continue to command near-full ask.
On the rental side, the picture is one of stabilizing growth. Apartment rents have climbed 6.1% year-over-year to an average of $1,863/month — bucking the slight cooling seen across broader Oregon — while single-family home rentals command $2,100–$2,600 depending on size and location. Vacancy remains tight at an estimated 5–6%, underpinned by Redmond's sustained population growth of 2.5% annually and its role as Central Oregon's most affordable bedroom community.
Mortgage rates at 6.53% (30-year fixed, Freddie Mac, May 28, 2026) continue to suppress buyer volume and convert would-be buyers into long-term renters — a dynamic that maintains robust tenant demand and positions landlords favorably. Oregon's 2026 rent increase cap of 9.5% gives landlords meaningful pricing flexibility on renewals, while new-construction exemptions offer additional leverage for recently built assets.
Affordability advantage: Redmond remains ~30% cheaper than Bend, attracting workforce renters and first-time buyers priced out of neighboring markets.
Development pipeline: 450+ units at Northpoint Vista and 60 at Westcliff represent Redmond's largest affordable housing effort, breaking ground in spring 2026.
Economic backbone: Bend-Redmond MSA ranked #4 in Milken Institute's 2026 Best-Performing Small Cities — a signal of durable economic strength.
Rate lock-in effect: Many homeowners with sub-4% mortgages are staying put, constraining resale inventory and sustaining rental demand across price tiers.
Rental Market Snapshot — May 2026
| Property Type | Avg. Monthly Rent | YoY Change | Typical Sq Ft | Avg. Days to Lease | Market Signal |
|---|---|---|---|---|---|
| SFH — 3BR/2BA | $2,195 | +5.2% | 1,400–1,800 | 14–22 days | Very Tight |
| SFH — 4BR+ | $2,540 | +4.1% | 1,900–2,400 | 20–35 days | Tight |
| Townhome/Condo | $1,790 | +3.8% | 1,000–1,400 | 16–28 days | Tight |
| Apartment — 1BR | $1,670 | +6.1% | 700–800 | 12–20 days | Moderate |
| Apartment — 2BR | $1,847 | +6.5% | 900–1,000 | 10–18 days | Tight |
| Apartment — 3BR | $2,287 | +7.2% | 1,200–1,400 | 8–14 days | Very Tight |
| Studio | $1,550 | +2.9% | 400–600 | 8–15 days | Moderate |
Sources: RentCafe, Zillow Rental Manager, Redfin, Apartments.com — May 2026 estimates. SFH data compiled from local MLS and property management surveys.
Analyst Note: Redmond's apartment rent growth of 6.1% YoY outpaces the broader Oregon trend of roughly 2–3% and reflects a growing gap between owner-occupant costs and rental alternatives. The seasonal dip in Nov–Jan followed by a strong spring rally is consistent with Central Oregon's outdoor lifestyle migration patterns.
Key Insight: Vacancy crept up slightly through late 2025 as new units delivered, but has tightened again entering spring 2026. The current 4.8% vacancy rate for SFH remains well below the ~6% market equilibrium, keeping landlords in a position of pricing strength. Spring and summer traditionally see the fastest lease-up in Redmond due to military and healthcare sector hiring cycles.
Avg. Tenancy Length
28 months
Redmond SFH tenants average 2.3 years, up from 21 months in 2022. Long-term renters dominate as high mortgage rates deter purchasing.
Annual Renewal Rate
71%
71% of SFH tenants renewed their lease in 2025, driven by moving costs, limited inventory alternatives, and school enrollment stability.
Turnover Cost Estimate
Average landlord turnover cost in Redmond runs $2,800–$4,500 per unit (cleaning, repairs, leasing fees). High renewal rates directly protect NOI.
What's Driving Long Tenancies in Redmond?
With 30-year mortgage rates holding above 6.5%, the monthly payment on a median-priced Redmond home ($482,000 at 20% down) runs approximately $2,628/month — versus renting a comparable 3-bedroom home for $2,100–$2,200. For many tenants, the financial calculus favors renting, especially when accounting for taxes, insurance, and maintenance. This dynamic is structurally different from the 2018–2021 era, when buying was often cheaper on a monthly basis.
Tenants are also drawn to Redmond's proximity to Central Oregon's outdoor amenities, growing healthcare and manufacturing employment base, and lower cost of living compared to Bend. These lifestyle anchors drive retention even when rents rise moderately at renewal.
Landlord Takeaway: Prioritize tenant communication and preventative maintenance to protect your renewal rate. Every percentage point improvement in retention translates directly to thousands in avoided vacancy and turnover costs annually.
Note: Vacancy uptick in early 2026 coincides with delivery of new units including Timbergon Modular's 9-unit complex and other small infill projects. Stabilization expected by Q3 2026.
Oregon SB 608 — Rent Stabilization (Updated 2026)
Oregon remains the only state with statewide rent stabilization. The 2026 maximum allowable rent increase is 9.5% for most residential units 15+ years old (up from 9.9% in 2025, recalculated annually as 7% + CPI-W).
Key provisions for Redmond landlords:
- No rent increase during first year of tenancy
- Max one increase per 12-month period
- 90-day written notice required for all increases
- No-cause evictions prohibited after first year (just cause required)
- 1-month relocation assistance for qualifying terminations (5+ unit properties)
- Exempt: Buildings <15 years old — no cap applies
- Exempt: New tenancy after vacancy — market reset allowed
HB 2001 — Eviction & Housing Access (2023 Amendment)
Eviction notices for nonpayment must include rental assistance information in multiple languages. Courts will dismiss improperly formatted notices — a compliance risk for self-managing landlords.
2026 Code Changes: The 2025 Oregon Structural Specialty Code (OSSC) became mandatory April 1, 2026, affecting all new construction and major renovation permits. Landlords undertaking significant capital improvements should verify compliance with updated energy and structural codes to maintain cost efficiency and permitting timelines.
Mobile Home Parks: The 2026 rent cap for mobile home parks (30+ spaces) is set at 6%, notably lower than the residential cap — important for investors considering this asset class.
Source: City of Redmond Building Division; Deschutes County records; 2026 estimate based on YTD pace through May. Note: The 2025 Oregon Structural Specialty Code (OSSC) is mandatory as of April 1, 2026 for all new permits.
Trend Observation: The mix shift from SFH to multifamily permits is significant — multifamily now represents over 44% of new residential permits in 2026 estimated, up from 20% in 2021. This reflects both market demand and city policy responding to affordability pressures. However, the absolute volume of new supply remains modest relative to population growth, keeping the market structurally undersupplied.
Northpoint Vista — Mixed-Income Neighborhood
Under Construction Multifamily + SFH40-acre planned development in northeast Redmond near NE Kingwood Ave. Phase 1 infrastructure (streets, utilities, stormwater) began spring 2025. Housing construction targeting spring 2026 start for affordable homeownership units via RootedHomes (land trust model). Market-rate multifamily component by deChase Miksis (Boise); market-rate SFH by Pahlisch Homes targeting 2027 start. City secured ~$8.5M in grant funding. Multifamily affordable construction delayed pending state LIHTC/LIFT funding clarity through 2027.
Westcliff — Habitat for Humanity
Funded / Pre-Construction Affordable SFH60-unit development in southwest Redmond, off Highway 97. Secured $1M in federal funding (Feb 2026) with total project cost ~$25M. Additional financing from Oregon's LIFT program for low- and moderate-income homeownership. Construction anticipated 2026–2028. Addresses Redmond's critical shortage of entry-level ownership opportunities.
Mountain View Community Village — Supportive Housing
Funded — 2026 Start Supportive/Homeless HousingLed by Mountain View Community Development. Received $23M state award (Oregon Housing Stability Council, March 2026) — the lion's share of needed funding. Poised to be the largest supportive homeless housing development in Central Oregon, at approximately twice the size of Cleveland Commons in Bend. Targets chronically homeless seniors and people with disabilities. Construction expected to begin 2026.
Timbergon Modular — Various Infill Projects
Completed / Active Market-Rate MultifamilyRedmond-based modular developer completing a 9-unit multifamily complex (ribbon-cutting Oct 2025) alongside earlier 4-plex and duplex projects. Modular construction approach reduces costs vs. traditional stick-build and accelerates timelines. Focus on 2BR/2BA market-rate units targeting workforce renters. Additional projects in pipeline.
Canyon Rim Village & New Subdivision Activity
Active Sales SFH Planned DevelopmentCanyon Rim Village continues as one of Redmond's most in-demand planned developments, featuring modern infrastructure, open floor plans, energy-efficient design, and proximity to schools and parks. Prices hover near city median. Ongoing lot releases by local builders. Represents the "new normal" of Redmond residential development — amenity-focused, family-oriented, priced to compete with Bend spillover demand.
City of Redmond Infrastructure (Wastewater + OR-126 Corridor)
In Progress Public InfrastructureNew wastewater treatment plant underway to accommodate long-term growth capacity. OR-126/35th Street intersection safety project secured $250K federal design funding (2026). New pump house and municipal well connection in construction. These CIP investments signal a city preparing for sustained growth — critical underlying infrastructure that enables future residential and commercial development.
What's Driving Redmond's Growth?
Redmond's population has grown 17% since the 2020 census, sustained by a consistent stream of in-migration from Portland, Seattle, and the Bay Area. Portland homebuyers search Redmond more than any other out-of-metro destination, followed by Seattle and San Francisco. This migration is fueled by Redmond's comparative affordability — home prices run 25–35% below Bend — combined with shared access to Central Oregon's world-class outdoor recreation, growing healthcare infrastructure, and expanding tech and manufacturing employment.
The Bend-Redmond MSA ranked #4 nationally among small cities in the Milken Institute's 2026 Best-Performing Cities Index, up two spots from 2024. The region's high tech industry growth, strong labor market, and entrepreneurial ecosystem were cited as key strengths. Redmond specifically benefits from its commercial airport (Roberts Field), its lower land costs, and its industrial-friendly zoning that attracts manufacturing and logistics employers.
Top Employment Sectors — Bend-Redmond MSA: Health Care & Social Assistance (19,350 jobs) · Retail Trade (16,229) · Professional & Technical Services (11,712). Redmond is also home to growing manufacturing, aerospace, and outdoor recreation industry employers. St. Charles Health System (Redmond campus), the airport, and manufacturing companies like PCC Airfoils are significant local anchors. Employment rate: 64% — notably above Oregon's 59.3% average.
The Landlord's Advantage in May 2026
Redmond SFH landlords are operating in one of the most favorable structural environments in recent memory. Rate lock-in keeps buyers renting. Population growth sustains demand. Vacancy is below equilibrium. And Oregon's 9.5% rent cap gives you meaningful pricing power at renewal — without the risk of losing good tenants through overreach. The single greatest risk to returns is vacancy, not rent ceiling. Protect your tenancy; price thoughtfully.
Maximize Renewal Revenue
With a 9.5% cap and strong demand, well-maintained homes can support 5–7% renewal increases without tenant turnover risk. Start renewal conversations 120 days out, provide notice at 90 days, and document improvements to justify pricing.
Compete on Quality, Not Price
Sub-$450K homes are selling 41% faster than last year, competing directly with entry-level rentals. Landlords with updated kitchens, in-unit laundry, and fenced yards command 10–18% above base market and experience lower vacancy.
Tenant Screening Is Critical
Oregon's just-cause eviction law (SB 608) makes removing a problem tenant after year one significantly more costly and complex. Invest in robust screening: income verification at 3x rent, credit history, and prior landlord references.
Monitor New Construction Impact
Northpoint Vista's affordable units (2026–2027 delivery) will add to lower-price-point supply. Higher-end SFH rentals ($2,300+) remain insulated, but budget-tier rentals may face softening. Differentiate your asset now.
Buyer vs. Seller Market Conditions
Based on days on market, list-to-sale ratio, inventory months, and sales volume trends
Interpretation: Redmond sits in a moderate seller's market, driven by fast days-on-market (29 days) and near-full list price achievement (96.7%), offset by declining sales volume and a softening median price.
Sources: Flex MLS via Engel & Völkers Bend (May 2026 report); Redfin; Zillow ZHVI; The Source — Bend, Oregon. Data includes SFH, townhomes, and condos.
Reading the 2026 Sales Market
The most important dynamic in Redmond's 2026 sales market is the bifurcation by price tier. Homes under $450,000 are selling 41% more frequently than last year — a surge driven by affordability-sensitive buyers and investors seeking entry-level cash-flow properties. Meanwhile, the $450K–$750K tier is down 34%, reflecting buyer hesitation at higher price points where monthly mortgage payments are squeezing affordability margins.
This explains the paradox: median price is down 9.5% (driven by the mix shift toward cheaper homes), but price per square foot is up 2.2% (driven by competitive bidding in affordable segments). Well-priced homes still attract 2+ offers and close in under 30 days. Overpriced homes sit — homes above $750,000 averaged 76 days on market YTD, versus 110 days at the same point in 2025. That's meaningful improvement, but still double the city-wide average.
Sellers who correctly price their homes in the current market are achieving 96.7% of original list price — down slightly from 97.5% in 2025, but far better than much of Central Oregon and the state broadly, where homes are regularly selling at 92–94% of list. Redmond remains one of the most disciplined and efficient markets in Oregon.
MF Investment Conditions — 2026
Redmond's multifamily investment market is experiencing a reset driven by elevated interest rates. Cap rates that were compressed to 4.5–5% during the 2021–2022 frenzy have expanded to approximately 5.5–6.5% for stabilized assets — a healthier range for long-term hold investors but one that reduces the refinance-exit velocity that characterized recent years.
Small-to-midsize multifamily (2–12 units) dominates Redmond's investment landscape. These 4-plexes, duplexes, and small apartment buildings transact at $280K–$420K per unit depending on vintage, condition, and location. New modular construction (Timbergon-style) is offering a more cost-effective path to value-add creation.
Investor Opportunity: The "lock-in effect" keeps qualified tenants renting longer, supporting NOI stability. Buildings with below-market rents and long-term tenants in place offer strong value-add potential via the 9.5% annual cap — especially for new owners taking ownership after vacancy resets.
Typical MF Cap Rates — Redmond 2026
Financing Landscape
DSCR loans remain the primary vehicle for investor purchases, with rates typically 50–100 bps above conventional. At current rents, a 4-plex priced at $900K–$1.1M can often achieve 1.15–1.25x DSCR, meeting lender minimums. SBA 504 and community bank portfolios remain active for 5+ unit acquisitions.
Monthly Payment at $482K Median
$2,628/mo
At 6.53%, 20% down ($96K). Vs. renting comparable SFH at ~$2,195 — a $433/month premium to buy. This gap keeps tenants renting.
Rate Lock-In Effect
Homeowners with 2020–2022 mortgages (avg. rate 3.1%) face a $800–$1,100/mo payment increase if they sell and repurchase at current rates. This suppresses listing inventory and sustains rental demand structurally.
Good News for Landlords
High rates = renter demand. The longer rates stay above 6%, the deeper the pool of qualified, long-term tenants who cannot or will not buy. Redmond landlords are beneficiaries of this national monetary policy environment.
Long-Term Rental Market
Long-term rentals (12-month+ leases) remain Redmond's dominant rental form, accounting for the vast majority of the market's ~4,455 renter-occupied units. The current environment strongly favors long-term positioning: stable tenancies, reliable income, and predictable expense management.
38% of Redmond households are renters — a slightly higher renter share than typical for smaller Oregon cities — reflecting both the younger demographic (median age 36.2) and the affordability gap that deters homeownership. Long-term rental demand has structural staying power through at least 2027 given the rate environment.
Short-Term Rental (Airbnb/VRBO)
Redmond hosts 311 active STR listings generating an average of $27,256/year at $250/night and 39.6% occupancy. Supply grew 62% year-over-year — a dramatic expansion — yet revenue and nightly rates both trended upward, suggesting demand is outpacing supply. Peak season is August; low season is February.
Top-performing STRs achieve 73%+ occupancy. Regulation is light in Redmond with minimal registration requirements — an operator-friendly environment compared to Bend or Sisters. However, STR saturation risk is real: the 62% supply growth rate is unsustainable long-term. Operators should differentiate on quality and amenities rather than compete on price.
Investor Note: STR annual revenue of ~$27K vs. long-term rent of ~$26,340/year for a comparable 3BR creates a near-wash economically — with STR carrying higher management intensity. Unless you have a premium property in a top tourism corridor, long-term rental often delivers better risk-adjusted returns in Redmond.
Rent Forecast — 12-Month Outlook
| Neighborhood / Area | Avg. SFH Rent | Price Range (Sale) | Tenant Profile | Investment Signal |
|---|---|---|---|---|
| Canyon Rim Village | $2,250–$2,450 | $480K–$560K | Young families, dual-income; school-focused | Strong Buy |
| NE Redmond (near Northpoint) | $2,050–$2,200 | $420K–$500K | Workforce families; mixed owner/renter | Watch — Supply Coming |
| SW Redmond (Hwy 97 corridor) | $1,950–$2,150 | $390K–$480K | Retail/healthcare workers; price-sensitive | Value-Add Opportunity |
| Downtown / Core | $1,800–$2,100 | $380K–$460K | Mixed age; walkability-oriented renters | Steady Performer |
| East Redmond (industrial adj.) | $1,900–$2,050 | $370K–$440K | Manufacturing/trades workers; stable employment | Cash-Flow Friendly |
| Rimrock / Outlying Rural | $2,300–$2,600 | $500K–$650K | Higher income; lifestyle renters; remote workers | Longer Vacancy Windows |
For SFH Landlords: Price to Market, Not to Hope
The fastest-turning rentals in Redmond are priced within 3–5% of market. Overpricing by $150–$200/month adds 2–3 weeks vacancy — effectively erasing any theoretical rent gain. Use Q2 2026 comps to establish a competitive offering price and move quickly.
For Investors: Buy the Workforce Tier
The $380K–$470K acquisition range is the sweet spot for cash-flow investment in 2026. DSCR underwriting works at these values with current rents. Avoid sub-$350K (limited supply, quality risk) and above $600K (longer vacancy, margin compression).
For MF Owners: Implement Renewal Strategy Now
Oregon's 9.5% cap is yours to use — but only with proper 90-day notice. Audit your lease inventory today. Tenants renewing between August and October represent your best opportunity to reset to market rents with strong legal documentation and tenant goodwill.
For Buyers: Act Before Fall Competition
With homes selling in just 29 days and inventory still constrained, waiting for rate relief could mean paying a higher price later. Buyers who move in June–August often secure better terms than fall competitors. Get pre-approved now and be ready to act decisively on well-priced listings.
Watch the New Supply Pipeline
Northpoint Vista, Westcliff, and Mountain View Community Village will collectively add ~600 units over 2026–2028. Affordable units are unlikely to directly compete with market-rate rentals, but they do reduce housing instability — ultimately creating a more stable tenant pool for private landlords.
Comply Proactively — Stay Ahead of Regulation
Oregon's landlord-tenant law is among the most complex in the nation. Improper eviction notices are being dismissed by courts. New code requirements (2025 OSSC) affect any permit pulled after April 2026. Partner with a licensed property manager to stay compliant and protect your asset.
MLS Data: Flex MLS (via Engel & Völkers Bend, Nathan Powers — May 2026) · Home Values: Zillow ZHVI · Redfin · Movoto · WalletInvestor · Rental Data: RentCafe · Rent.com · Zillow Rental Manager · Redfin Rental Market · Point2Homes · STR Data: AirROI (May 2025–April 2026 dataset) · Population: Portland State University Population Research Center · WorldPopulationReview · Oregon Demographics · Economic: EDCO (Economic Development for Central Oregon) · Redmond Economic Development Inc. (REDI) · DataUSA · Milken Institute Best-Performing Cities 2026 · Local News: Redmond Spokesman (December 2025, January 2026, February 2026) · The Source — Bend, Oregon (May 2026) · The Bend Bulletin · KTVZ · Development: City of Redmond Community Development · Deschutes County Records · Oregon Housing and Community Services · Legal/Regulatory: Oregon ORS Chapter 90 · SB 608 · HB 2001 · Oregon Dept. of Administrative Services (2026 rent cap) · Mortgage: Freddie Mac PMMS (May 28, 2026) · Bankrate · U.S. News / Zillow · Code: City of Redmond Building Division (2025 OSSC, April 2026).
This report is compiled for informational and investment research purposes. All market data is deemed reliable but not guaranteed. Consult a licensed Oregon real estate professional, attorney, or financial advisor before making investment, purchase, or management decisions. PMI Central Oregon is a property management and real estate research firm serving the Central Oregon market.
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