Oregon Home Selling

Oregon's housing market remains competitive, thanks to limited supply and strong buyer activity. With a median sale price of around $513,000 in October 2025 (+1% year over year), the Beaver State is more expensive than the national median of roughly $440,000, but considerably cheaper than neighbors like California ($838,700) and Washington ($643,100).

A 3-month supply of homes (no change from the prior year) means Oregon remains a seller's market, though homes don't always sell quickly. During the warmer months, homes may sell in as few as 30 days, while the slow-moving winter market sometimes sees homes sit on the market for more than 60 days.

While the number of homes for sale has increased significantly in 2025, supply still fails to meet demand, putting upward pressure on prices. This resulted in more than 23% of listed homes selling above the asking price in October 2025, which is significantly fewer than in California (34%), but more than other border states like Nevada (15%) and Idaho (12%).

In 2024, Oregon's share of permits accounted for just 1% of the U.S. total, despite representing 1.3% of the nation's population. This did little to support additional supply or ease affordability. As of April 2025, the state was on pace to issue just 11,184 residential permits in 2025, less than one-third of the governor's total housing production goal. Unsurprisingly, Oregon received the lowest possible grade on Realtor.com's Homebuilding and Affordability Report Card, ranking near the bottom of all states.

Oregon's property tax rate of 0.83% puts it among the middle of all U.S. states. The state's moderate property taxes are relatively manageable for investors and homebuyers, though other states in the region, such as Nevada (0.49%) and Idaho (0.53%), may offer even lower rates.

In terms of foreclosures, Oregon generally sees fewer foreclosed homes than most other states. With a foreclosure rate of 1 in every 7,857 homes (as of October 2025), Oregon experienced far fewer foreclosures per housing unit than the national average and all four of Oregon's border states (California, Nevada, Washington, and Idaho). This low rate suggests a more stable housing market with high homeownership retention.

Although affordability remains a challenge across the state, Oregon offers solid investment potential due to a steady job market, rising prices, and low foreclosure rates. With some competition and slower-moving sales than in some other nearby markets, Oregon balances stability and the possibility of long-term appreciation.

Based on an analysis of Oregon's real estate market, the following areas offer strong investment potential and easier development opportunities. This is because these areas offer a mix of good location, favorable local building and development laws, and high housing demand, making them attractive for both investors and developers.

• Portland (Pearl District): The Pearl District in Portland is known for its upscale living, steady job opportunities, and rising property demand. Recent data shows the median home price for a property in the Pearl District is around $450,000. The district has high demand for long-term and short-term residents due to its employment opportunities and tourist appeal, making it a top choice for investment and rental opportunities.

• Bend (Old Mill District): The Old Mill District in Bend is a lucrative market for property investment and rental income, particularly for those pursuing investments in mixed-use zoning. The median sales price for a property in the Old Mill District is $777,475, a 1.5% increase from the previous year.

• Salem: Salem, Oregon's capital, had a median sale price of around $455,000 as of October 2025. With a sale-to-list-price ratio of 99.3% and 28% of homes selling above the asking price, Salem may be a good target for investors seeking stability and steady growth potential.

• Eugene: With a median home sale price of $499,000 (no change year over year), Eugene offers strong investment opportunities and rental demand from University of Oregon students and faculty. Homes in Eugene tend to sell quickly, often in under 30 days, with steady demand from investors and owner occupants.

• Baker City: Baker City has a property value of $276,390, putting it in the top five most affordable markets in the state. Home values here have increased steadily over the past several years, making it an attractive destination for real estate investors.

• Hillsboro: The median home price in Hillsboro was roughly $530,000 in September 2025, reflecting steady demand in the tech-driven city. Hillsboro's mix of family-friendly amenities and access to Portland make it a good location for homebuyers and investors. In addition, local code changes now allow more accessory dwelling unit (ADU) development and middle-housing construction, giving investors and homeowners room to build and increase property income.

• Lake Oswego: The median home price in Lake Oswego hovers around $1.1 million, showing strong demand for high-end homes. Properties spend a few months on the market, while inventory remains limited, keeping upward pressure on prices. As one of Oregon's most desirable housing markets for families and professionals working in Portland, Lake Oswego also offers pathways for ADUs and middle housing where zoning allows, which can add long-term flexibility and value.

• Oregon City: With a median home sales price of roughly $550,000 (as of September 2025), Oregon City offers solid investment potential for those seeking a mix of small-town charm and suburban amenities. However, competition in the city is high, making it one of the toughest markets for buyers in the state. Homes here spend a median of just 14 days on the market, with 30% of homes selling above the original asking price. The city also offers potential for ADUs and middle-housing expansion under House Bill 2001, giving investors more options beyond single-family.

• Corvallis: Home to Oregon State University, Corvallis offers steady rental demand driven by students, faculty, and staff. This consistent population flow supports long-term income prospects for investors. Corvallis has a median home sale price of $605,000, with properties typically selling in under two months.

• Medford: Medford's housing market remains relatively balanced, with a healthy match of supply and demand. With a median list price of $450,000, most homes accept an offer within 38 days and tend to sell around 1% below asking. Home values in Medford have appreciated by around 25% over the past two years, consistently attracting investors and end users.

Homes in Oregon move at a steady pace, driven by demand from tech workers, remote workers, and individuals seeking access to outdoor activities. While seasonal peaks tend to increase market demand, sellers typically expect to wait a few months before finalizing home sales.

Across the state, certain home characteristics generally attract more buyers, potentially leading to additional offers and reducing days on market:

Generally, selling a home in Oregon requires a thorough understanding of local zoning rules and permits, which can greatly affect a property's value. Many buyers request a zoning compliance letter to confirm the home's zoning status, that the allowed uses match their plans, and that there aren't any violations or issues with noncompliance. Having this information ready may help avoid delays and put sellers in a stronger position to ask for a better price.

Oregon law ORS 227 and ORS 215 give cities and counties the authority to set their own zoning rules to ensure development aligns with statewide planning and goals. ORS 197 outlines land use laws and statewide goals, which include protecting the environment and historic areas.

Strict Zoning Laws

Strict zoning laws may be set by local governments that tightly control how land can be used and developed. These laws often limit building size, design, height, lot coverage, or even the number of units allowed. Oregon cities such as Portland, Lake Oswego, and Eugene have some of the strictest zoning regulations.

For example, Portland requires design review for facade changes and additions, while Lake Oswego enforces lot size rules and tree protection. In Eugene, the city's Land Use Code limits new development near protected lands and requires public hearings for some projects. These strict laws help preserve community character but may slow down or complicate construction and remodeling.

Less Bureaucratic Zoning Laws

Cities with fewer bureaucratic zoning laws in Oregon make it easier and faster for property owners to build or develop land. In counties like Deschutes, Klamath, and Coos, the permitting process is simpler and quicker due to fewer restrictions and limited review requirements.

In rural parts of Deschutes County, homeowners may add an accessory unit without going through lengthy public reviews. Klamath County's large lot sizes and fewer overlays mean fewer delays in getting building permits. In unincorporated areas of Coos County, most new homes or additions only need basic site and building permits, making these areas attractive for easier residential development.

Special Permit Requirements Via Public Hearing

In some Oregon cities, certain property developments require special permits that include a public hearing process and approval from the local zoning board or planning commission. This typically applies when a proposed use doesn't align fully with existing zoning laws, such as adding an ADU, opening a home business, or requesting a variance for setback or height limits.

In Bend, Corvallis, and Salem, the property owner must apply for a conditional use permit or variance and present their plans at a public hearing. The zoning board or planning commission then reviews the proposal, hears public comments, and decides whether to approve it. While this process ensures community input, it may also lengthen timelines, adding complexities for homeowners and developers.

Certificate of Occupancy Requirements

In Oregon, a Certificate of Occupancy (CO) is required for new construction, major remodels, or any change of use or occupancy under the Oregon Structural Specialty Code. A CO verifies that the structure meets safety and building code standards and has passed all required inspections. While a CO is not required to sell an unchanged single-family residence, it is mandatory before anyone can legally occupy a newly built or significantly altered home. Utilities may sometimes allow temporary power during construction, but full utility service is generally released only after final inspections and issuance of the CO.

Historic Commission Oversight

In Oregon, many cities require homes in designated historic districts to undergo review before exterior work, additions, or major renovations. Local historic commissions evaluate proposed changes to ensure they preserve the district's architectural character. Reviews may cover paint colors, window and roofing styles, exterior materials, or signage. This process is especially active in places like Portland's Historic Districts, Jacksonville, Oregon City, and the Ashland Downtown Historic District. Property owners usually must submit detailed plans for approval, and while the process can extend timelines, it safeguards the historic fabric of these neighborhoods.

Complying with zoning, permits, and land-use rules is important when building or selling a property in Oregon. Failure to follow the rules may cause delays, fines, or alterations to construction plans, which can cost additional time and money. Below is a general overview of which areas in Oregon are more friendly and flexible for developers and sellers, and which ones have stricter rules that can slow things down:

Development-Friendly Areas

Development-friendly areas in Oregon support growth with easy permitting processes and flexible zoning rules. These places often welcome new projects and work with developers to move things quickly:

• Redmond: Redmond is a pro-growth hub in Central Oregon with a fast-growing airport, logistics base, and a permitting department known for operating efficiently. Strong housing demand supports both residential and mixed-use infill.
• Albany: The city has an active planning department for housing and commercial growth, helping support development.
• Keizer: With infill incentives and downtown revitalization programs, Keizer leverages its proximity to Salem for retail and housing expansion.
• Klamath County (Unincorporated): The Building Division of Klamath County's unincorporated areas has flexible R-1 and R-2 zoning. The permit process for homes and accessory buildings is straightforward.
• Douglas County: Douglas County's land-use planning program is known for minimal design rules and flexibility. Most residential building projects require only basic administrative review.
• Josephine County: In Josephine County, rural residential zones, single-family dwellings, and accessory structures (including ADUs) are allowed using ministerial, over-the-counter review processes.

Moderately Regulated Areas

Moderately regulated areas in Oregon have clear rules, but some projects may need extra reviews or approvals. These locations in Oregon balance development with community standards and planning goals:

• City of Eugene: In Eugene, ADUs are processed through a ministerial, administrative process; no conditional-use hearing is required. However, larger home businesses may trigger hearings. Reviews generally take a few weeks.
• City of Salem: Variances are processed under a Type III procedure (discretion or legal judgment required) and include a public hearing before the Hearings Officer, following neighborhood notice and written criteria compliance.
• City of Bend: The city operates under the Growth Management Plan, which governs how and where new development may occur within the city limits. However, pre-application meetings help speed up and clarify the building process.
• City of Beaverton: The city requires special design review in some areas, but its permit center is fast and efficient, approving building permits within a few days, but not more than four weeks.
• City of Corvallis: The city's Planning Division uses a Land Use Application, which adds procedural steps for land use reviews and may require a hearing; however, most permits are approved within a few weeks and may be tracked online.

Highly Restrictive or Bureaucratic Areas

These areas have strict rules, strong public input, and extra layers of reviews, typically involving historic or environmental boards, leading to longer approvals:

• Portland: Portland has a variety of overlay zones that layer additional regulations on top of base zoning. Projects requiring Type III design review trigger public hearings before the Design Commission and include extended timelines, neighborhood notification, and formal posting.
• City of Ashland: Ashland's Historic District Development Standards govern alterations and new construction. These typically require a public hearing and may trigger compatibility reviews.
• City of Cannon Beach: Cannon Beach includes an Oceanfront Management (OM) Overlay Zone, which enforces ocean yard setbacks and prohibits most structures seaward. New construction triggers planning approval by the planning commission.
• City of Hood River: Alterations or development to historic districts and buildings are subject to review by the Landmarks Review Board, which typically involves public hearings and multiagency input.
• City of Lake Oswego: The city includes multiple area-specific overlay districts, which impose specific design reviews for facade changes and landscaping. Properties within these areas are subject to review by the Development Review Commission.

Regulatory Climate Factors

Oregon's development rules vary by area and significantly affect how easy it is to build, renovate, or flip a home. By complying with local laws, property investors can protect their investment and property value. The following table includes factors that affect property development, and where they're commonly found within Oregon:

*NIMBYism - Not in My Backyard

To ensure you get the most profit from reselling or flipping a home in Oregon, it's important to match your strategy to the local market. The following are some of the top strategies that work well across Oregon's housing markets:

When pricing your Oregon home, local expertise and current market data are important to ensure you attract serious buyers and get top dollar for your property. To this end, it's essential to work with a local real estate agent or appraiser who can provide insight into key details that may impact the value of your property, such as rezoning or school districts. In addition, these professionals will analyze comparable homes sold, pending, or active within the last 90 days to help you set a competitive and realistic asking price that draws interest and offers. Below are the top pricing strategies Oregon sellers and investors use, along with the areas where each tactic typically thrives:

To get the best price and sell quickly in Oregon, it's important to match your pricing strategy to your home type and local market conditions. Once you've reviewed comparable listings from the last 90 days, use the following tips to guide your pricing approach:

Oregon's property market is shaped by strong economic growth, changing population trends, and varying local rules that affect home supply and demand across the state.

Economic Factors

Oregon's unemployment rate jumped to 5% in August 2025, its highest since 2021. However, Oregon's economy is growing steadily, boosted by job growth from the tech, healthcare, and renewable energy industries, especially around the Portland metro area. In 2024, Oregon's average hourly earnings i ncreased by 4.9%, surpassing the national average. This wage gain is fueling the purchasing power of many homebuyers across the state.

Though new construction falls short of persistent demand, builders are active, especially in suburbs such as Beaverton, Hillsboro, and other parts of Portland. These areas are particularly appealing to families seeking more affordable homes with access to good schools and transit options.

Demographic and Social Factors

Oregon continues to experience steady in-migration, especially from higher-cost states, such as California and Washington. This influx boosted demand for both upscale urban condos, like those in Portland's Pearl District, and spacious suburban areas like Lake Oswego, West Linn, and Happy Valley. With a median age of 40.7, many buyers are families seeking 3-4 bedrooms or older adults looking for low-maintenance living in walkable, amenity-rich neighborhoods.

Environmentally-conscious residents also prioritize energy-efficient homes, solar upgrades, and proximity to parks and transit. This blend of lifestyle and sustainability shapes housing demand and local trends across Oregon cities.

Regulatory and Legal Framework

The 2019 House Bill 2001 and Portland's Residential Infill Project permit duplexes and fourplexes in most single-family zones, encouraging diverse and affordable housing types. However, the state's urban growth boundary restricts large-scale outward expansion, meaning builders must be strategic about where new homes are built.

Although Oregon has statewide rent stabilization (Senate Bill 608) capping most annual increases and requiring just-cause for evictions, Portland goes further by requiring larger developments to include affordable units under its Inclusionary Housing Program. These policies create more flexibility for developers while preserving green space and guiding smarter, higher-density growth in cities like Portland, Eugene, and Bend.

Taxation and Fiscal Policy

Oregon has no general sales tax, which benefits everyday consumers (though capital gains are taxed as regular income). The state uses a progressive state individual income tax starting at 4.75% to 9.9%, depending on income and filing status. Oregon's Kicker Law also refunds extra income tax revenue to residents when state collections exceed forecasts, putting money back in people's pockets, allowing them to spend locally, including being able to afford a home in the state.

Property taxes of around 0.83% in Oregon are roughly in line with the national median, making real estate ownership relatively affordable, especially in cities like Salem, Medford, and Eugene. These taxation policies support homeownership and long-term investment stability.

Housing Policy and Government Programs

Oregon Housing and Community Services (OHCS) offers several programs to help first-time homebuyers. These include down-payment assistance, low-interest loans, and mortgage tax credits. The support is available statewide, but extra help is directed to rural areas where housing costs are rising faster than incomes. OHCS also partners with local nonprofits and lenders to provide homebuyer education, helping buyers understand the process and manage costs. These programs aim to make homeownership more accessible for working families, especially in high-need regions like Southern Oregon, the Willamette Valley, and the Columbia Gorge, where affordability challenges are growing.

Infrastructure and Development Trends

Oregon's transit upgrades are reshaping housing demand. The expanded MAX Red Line extension into Hillsboro and the proposed Southwest Corridor Light Rail Project are encouraging dense mixed-use development near stations. These projects make it easier for people to live without cars, boosting interest in walkable neighborhoods outside central Portland. Cities like Beaverton, Gresham, and Tigard are seeing more multifamily housing near transit stops, helping meet demand and ease pressure on the housing market.

Market Sentiment and Investor Behavior

Home prices in Oregon are expected to continue rising. This steady growth is drawing investors back into the market, especially for value-add flips and rental conversions. The state's low foreclosure rates and strong home equity gains show continued market stability, encouraging long-term investment. Areas like Gresham and Hillsboro remain investor favorites, supported by high demand and Oregon's reputation as a reliable, high-return real estate market.

Oregon's housing market blends rising demand with limited supply and complex local rules. From Portland's urban core to rural towns in the central part of the state, sellers and developers must work around growth boundaries, zoning codes, and design reviews. Wage increases and the arrival of out-of-state residents keep demand high, especially for single-family homes and infill housing. Transit projects and incentives are also guiding where new construction thrives, while ADUs and light renovation strategies boost returns on existing homes. The state's supportive tax policies and first-time buyer programs have helped keep the market steady and promote more accessible homeownership. As with all real estate investments, success in Oregon's housing market depends on understanding local regulations, buyer trends, and development patterns.