BEND, OR -- Apartment availability in Deschutes County is higher than it has been in 10 years. “Over the last couple of years, that vacancy rate has gone from 6.5% all the way up to about 10.5%, 11% which is where it's predicted to go the end of next year,” says Dan Kemp, Compass Commercial Real Estate Principal Broker, Partner, and Vice President of Brokerage. He tells KBND News new construction is outpacing the number of people moving to the area, “We're only absorbing about 290 on average per year. So, with so many deliverables in 2023 and another 680 units underway, that's going to lead to an increase in your vacancy rate.” Over 500 units came online last year, according to the latest Compass Points Commercial Real Estate market report.

The average price for a one-bedroom apartment in Bend is more than $1,800 a month, according to online sources. Kemp reports rents have climbed about 5% each year since 2014, but he doesn’t believe rates will increase much this year, and could even come down as more units open up. “As you have an increase in supply and you're not absorbing as many units and that vacancy rate goes up. What happens to rents is they typically start to equalize or even come down. What we're seeing is that rent growth is going to be slower over the next couple of years,” he says. Renters make up about 40% of Bend households, but Kemp believes that number could rise, “We've seen an impact on the first-time home buyer with the increase in interest rates that are going to lead towards more of those folks looking at staying in the apartment unit.”