I always appreciate the opportunity to write my thoughts down for Redmond in the coming year. It is a chance to think about the opportunities and reflect on the many variables that are in motion and to see if I can make sense of them.
Redmond continues to be a place where things are happening, and a positive attitude prevails. This does not mean Redmond is not affected by the economic climate. We feel the higher prices at the pump, at the grocery stores, and if you have tackled a home improvement project, the price of lumber and supply chain issues. The loss in spending power bites into the pocketbook is being felt by everyone. Redmond’s attitude, creativity and perseverance have always served the community well and will continue to do so in the coming year.
With that said, there are some signs that Redmond is feeling the impact of inflation and higher interest rates. Some home builders in Redmond have gone from waiting lists for new homes to having to offer incentives. Redmond’s Housing Needs Analysis shows the need for 7,000 new homes by 2040. The demand for new homes will continue and again, the creativity and adjustments to the changing market variables will keep home sales moving forward in 2023. Banks and lending institutions are also being creative in the financing of new homes and will do what is possible to help close the deals.
On the tourism side of the economy, room tax remains stable, up slightly for 2022. Hotel occupancy is stabilizing post-COVID, with the average daily room rates up. The Deschutes County Fair and Expo is showing strong bookings for 2023 and will continue to be an economic driver for the region. Air service to the region has undergone some major adjustments, as airlines struggle with pilot shortages and fuel costs. Again, the creativity and adjusting to the market has led to new aircraft and greater seat capacity. While we have lost some service, we have gained new and the airport continues to offer outstanding service. I know everyone wants the return of Portland service and that will happen eventually, but probably not as fast as most people would like (possibly in late 2024). The airport and airlines will continue to grow and adjust with the market.
I remain optimistic for 2023. Redmond has strong leadership at both the City and civic levels. Local residents support one another and help each other out like a true community. Shopping local and supporting one another is a way of life, not just a slogan on a bumper sticker. Redmond is the place to be in 2023.
