Bend is and has been facing a growing crisis: a shortage of affordable housing. The city has witnessed a surge in population over the last decade, driven by its natural beauty, recreational opportunities and thriving job market. However, this rapid growth has exacerbated the challenges of building affordable housing.
One of the primary obstacles is the escalating costs. The housing market has experienced tremendous demand, resulting in skyrocketing property values and rental rates. The median home price has surged, placing homeownership out of reach for many residents. This trend makes it challenging for developers to construct affordable housing when land and construction costs remain high.
The city’s urban growth boundary, established to preserve its scenic beauty, restricts the expansion of residential developments. This constraint has led to an insufficient supply of land for affordable housing construction, further driving up costs and making it difficult for developers to meet the demand.
Zoning regulations can play a significant role in the challenges of building affordable housing in Bend, though changes are underway with Oregon’s passage of HB 2001, which abolished single-family zoning in the state. We’re just now starting to see the changes that bill will provide.
The city’s zoning codes historically prioritized single-family homes, which can deter the construction of high-density, mixed-use projects that are vital for creating affordable housing options. With the need for more diverse housing solutions, it will be interesting to see how the effects of HB 2001 play out.
Bend, like many communities across the United States, also faces opposition from NIMBYs (Not In My Backyard) who resist the development of affordable housing in their neighborhoods. Concerns over potential decreases in property values, traffic congestion and changes to the character of existing neighborhoods can make it difficult for affordable housing projects to gain community support.
Expanding affordable housing in Bend also comes with infrastructure challenges. As the population grows, so does the demand for public services like schools, healthcare facilities and transportation. Ensuring that these services can accommodate the increased population while maintaining affordability adds another layer of complexity.
Bend’s economy is a mixed blessing. On one hand, the city’s thriving job market attracts newcomers, increasing the demand for housing. On the other hand, the economic disparities between those who move to Bend for high-paying jobs and existing residents can exacerbate the affordability crises.
Affordable housing development typically relies on a combination of public and private funding. Government resources for affordable housing are limited, and competing priorities can lead to underinvestment. Developers often need to rely on subsidies and tax incentives, which may not be sufficient to bridge the affordability gap.
The development timeline for affordable housing projects in Bend is often protracted. This can be attributed to a variety of factors, including regulatory hurdles, land acquisition and financing challenges.
Addressing these challenges requires a collaborative effort involving city officials, developers, community members and organizations dedicated to affordable housing in Bend.
This article appears in Source Weekly September 7, 2023.
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I have seen zero media outlets report on one of the true reasons for unaffordable housing: municipal permit mandates. The biggest ones are utility main extensions which can run upwards of $1,000/LF to install (ie, an 8″ ductile iron main pipe w/ seismic). If a developer wants to put an affordable project on a street that doesn’t have a sewer/water/stormwater main (which is about 50% of every block face w/ 4-sides as very few cities are fully gridded), the city will mandate it to be installed to service the denser housing proposed. The cities will also use the opportunity of having to replace the road once the main is installed to mandate upgrades to sidewalks, curb and gutters, ADA ramps and other road standards that they want. It can be anywhere from $100k – $1MM+ per project just to add infrastructure. And the city makes the developer pay for it. This is called an “unplanned extension mandate” and it kills projects before they are even started. It’s really one of the underlying factors as to why housing is not affordable and scarce. The city has no programs or plans to help pay for it. They require private funding by the developer.
It’s a complicated issue but let’s also talk about Short Term Rental Permits if you want to discuss affordability. A reason for lack of affordability falls on the city for allowing people to acquire short term rental permits, aka STR’s. It is a big business for Airbnb and platforms alike, investors and for the city as well because it generates a large amount of tax revenue. When I was on Summit West Neighborhood Association Board, we would get land use notices for our area and most of them were in regards to investors from out of state purchasing homes in Bend and acquiring an STR permit so they could rent them out. It was sickening for me to watch our city allow this, especially from out of state investors whom have no attachment to our community and provide these permits on a continuous basis. I have written several letters to our city council in regards to this. When someone has a STR it also increases the value of the home because it’s a big income producer. The city makes a ton of money from the taxes they acquire so they are not motivated to stop issuing the permits. And because of this permit, when a sweet local family starting out wants to buy a house, well it becomes unaffordable. It is documented that Airbnb has created situations all over the world where housing becomes completely unaffordable and they have ruined cities and in turn the communities within the cities. There are cities in the US that have banned Airbnb and it has definitely helped with affordability and creating more cohesive communities. I know we are a tourist destination but we also have to be a thriving local community where everyone can afford to live, play and work here. Let the tourists go to hotels and B&B’s.