The Oregon real estate market is known for its scenic diversity, ranging from vibrant cities and charming small towns to majestic mountains and stunning coastal communities. Whether you’re considering buying your first home, relocating, or investing in property, understanding the average cost of residential real estate across the state is essential. For up-to-date market data, listings, and expert real estate advice tailored to your region, visit realestate.visitoregon.com.
As of 2025, the average price of a residential property in Oregon is approximately $512,000. This marks a modest but steady increase from the previous year, reflecting both the cooling of pandemic-era price surges and a still-active housing demand across key markets.
Statewide Trends in Residential Real Estate Prices
Oregon’s real estate market has transitioned from the fast-paced growth of 2020–2022 into a more balanced and sustainable phase. While prices are not climbing as quickly as they did during the height of the pandemic, they are still increasing at a healthy rate in most areas. Factors such as high demand, limited inventory, and regional desirability are keeping prices elevated, especially in more desirable locations.
Several overarching trends are currently shaping the average home price across the state:
- Limited Inventory: Despite efforts to boost housing supply, Oregon still faces a housing shortage in many areas. This continues to put upward pressure on home values, especially in popular markets like Portland, Bend, and the Oregon Coast.
- Remote Work and Lifestyle Migration: The shift toward remote work has driven people from high-cost states like California into Oregon’s more affordable regions. This has led to increased demand in cities such as Bend, Medford, and Eugene.
- Interest Rates: Mortgage interest rates remain higher than they were in the pre-2020 era, impacting buying power. However, a slight decrease in rates projected for later in 2025 may entice more buyers back into the market.
- Affordability Challenges: Rising prices and higher interest rates are making it difficult for first-time homebuyers to enter the market, especially in urban and resort communities.
Spotlight on Major Regions
- Portland Metro Area: Portland remains Oregon’s most prominent and competitive housing market. The city offers a mix of urban lifestyle, green spaces, and job opportunities, particularly in tech, healthcare, and education. Average home prices in Portland have stabilized after years of aggressive appreciation and now hover around the mid-to-high $500,000s. Buyers are showing increased interest in suburban neighborhoods like Beaverton, Tigard, and Gresham, which offer more space and value.
- Bend and Central Oregon: Bend has evolved from a quiet mountain town into a red-hot housing market. Its combination of outdoor recreation, community appeal, and scenic beauty continues to attract remote workers, retirees, and investors. Home prices in Bend are among the highest in the state, often exceeding $700,000 for single-family residences. Despite high prices, demand remains strong, and new construction projects are underway to accommodate continued growth.
- Eugene and Salem: Eugene, home to the University of Oregon, offers a balance of affordability and liveability. The market has seen a steady increase in home prices, driven by student housing, a vibrant cultural scene, and a strong local economy. Salem, Oregon’s capital, also offers attractive options for buyers looking for value, with average prices around the mid-$400,000 range. Both cities are growing steadily while remaining more accessible compared to Portland or Bend.
- Southern Oregon: Communities like Medford, Grants Pass, and Ashland in Southern Oregon offer picturesque surroundings and a slower pace of life. These areas have become increasingly attractive to retirees and those relocating from more expensive West Coast cities. Home prices in Medford, for instance, average just over $400,000, with strong demand for single-level homes and newer builds.
- Oregon Coast: Coastal towns such as Newport, Florence, and Cannon Beach have seen increased interest from second-home buyers and vacation rental investors. While inventory is tight and prices vary, many coastal properties especially those with ocean views, command premium prices. The average cost for a home along the coast can exceed $500,000, particularly in areas with high tourist appeal.
- Rural Oregon: Inland and rural areas across eastern and southern Oregon offer some of the most affordable residential options in the state, with many properties priced between $350,000 and $400,000. These areas are appealing to buyers seeking space, privacy, and lower cost of living—though they may require trade-offs in terms of commute times, job access, and amenities.
Future Outlook for Oregon Home Prices
Looking ahead, experts anticipate that Oregon’s housing market will continue its moderate growth trajectory. Barring any major economic shifts, the average price of residential real estate is expected to rise gradually through the end of 2025 and into 2026.
There are a few key developments to watch:
- Zoning Reforms: Oregon is pursuing housing reforms, including loosening zoning restrictions to allow more multi-family and infill housing, which could improve supply over time.
- Infrastructure Investments: Planned investments in transportation and broadband access could open up more rural and suburban areas for residential development.
- Interest Rate Changes: A potential decline in mortgage rates could reignite demand, particularly among first-time homebuyers.
The average residential real estate price in Oregon in 2025 stands at around $512,000 but this figure only tells part of the story. Buyers and sellers should look beyond state-wide averages and pay close attention to regional trends, local demand, and property types. Whether you’re interested in a condo in downtown Portland, a custom home in Bend, or a coastal retreat, Oregon offers a wide spectrum of real estate options.
