Central Oregon has long been considered a desirable place to live and work, and over the past decade, the community has achieved overall growth through economic ups and downs. While it can be easy to get mired in the day’s headlines and focus on uncertainty, taking a step back and considering a longer-term view of the region’s progress provides reassurance that its people and businesses have the flexibility, spirit and resilience to persevere no matter what comes next.
Washington Trust Bank recently issued a new Central Oregon Market Snapshot, delving into data points from the past decade to gain insights into potential opportunities and challenges ahead as well as to help local businesses, community members and civic leaders plan accordingly. Recognizing that the Bend-Redmond Metropolitan Statistical Area (MSA) is a key economic engine for the region, the report also explores how this area, in particular, has been faring and how it compares to peers around Oregon.
Labor Force Appears Stable, Growing
With enviable numbers when it comes to days of sunshine and recreational opportunities, Central Oregon has often been a draw for seniors seeking an active and fulfilling retirement. In the past decade, however, the region has seen an influx of working-age adults who are putting down roots. With few exceptions, Crook, Deschutes and Jefferson counties have all experienced modest and steady increases in their civilian labor force over the past ten years.
In 2024, job growth in the Bend-Redmond MSA was concentrated in the public sector — including education, health services and government — and generally followed statewide trends. While job growth is good news, this remains an area to watch, as long-term economic vitality rests with maintaining a diverse employment mix with a robust private sector component. Although leisure and hospitality as well as trade, transportation and utilities lost jobs in 2024, these two broad areas remain among the largest employers in the region.
Bucking a state trend, the Bend-Redmond MSA saw an uptick in construction sector jobs last year. One driver of employment here was a spike in residential building permits in 2024, which is welcome news in a market where the housing supply remains tight against a backdrop of elevated prices and relatively high mortgage rates.
Businesses, Incomes Are On the Rise
Small businesses are the lifeblood of communities in Central Oregon. Many of these businesses are thriving, and an entrepreneurial spirit is alive and well. The number of private establishments in the region have increased more than 70% in the past decade, with much of the growth slow and steady. While numbers are up for the decade overall, they did dip in 2024, with the effects of the inflationary environment and high interest rates of 2022 and 2023 considered at least partly to blame.
As private establishments have grown in Central Oregon, so have incomes. From 2013 through 2023, the median household income in Deschutes County nearly doubled, while the median household incomes in Crook and Jefferson counties have risen 69% and 66%, respectively. This growth in income reflects the success of area employers, which continue to be diverse and attractive to talent in key areas such as technology, healthcare, advanced manufacturing and outdoor recreation.
Housing Remains a Growing Pain
Central Oregon’s population continues to grow and has largely done so since 2000. Only around the years of the Global Financial Crisis (2007-2009) did growth stagnate, but by 2011 it resumed its upward climb and was little deterred by the COVID-19 pandemic. While population growth has translated into economic opportunity, new enterprise and a larger workforce, it has also come with added pressure on the local housing market.
Home affordability is an issue nationwide, and it continues to be a challenge in Central Oregon. In addition to mortgage rates that remain high relative to recent history, housing pricing themselves could be pushed up further should materials in the supply chain be subject to tariffs or shortages. As noted earlier, the increase in building permits in 2024 is a positive sign that buyers may see the local housing stock expand soon, and consumers also appear to be adapting, albeit slowly, to what may be the new normal in rates.
For many workers, homeownership remains stubbornly out of reach, and renting is the best option. However, as with home prices, rents have risen in the region and remain well ahead of those in similarly sized markets around Oregon, such as Eugene-Springfield, Medford and Salem. Looking back to 2015, rents in Bend have always come at a premium, but the gap widened considerably in pandemic years and has yet to narrow measurably. Dedicated local nonprofits are working diligently to ensure individuals and families have a roof over their heads.
Read the Market Snapshot
Central Oregon continues to demonstrate adaptability and resilience, and this dynamic region keeps drawing individuals, families and enterprise seeking a sense of community, opportunity and adventure. For a deeper dive into the data and Washington Trust Bank’s interpretation of what has been and what is to come, please visit watrust.com/central-oregon. With the right elements in place, we are optimistic that Central Oregon can achieve and sustain balanced growth in years ahead.
Cory Allen is a senior vice president and team leader for Washington Trust, Member FDIC and Equal Housing Lender. He is based in Bend, Oregon, and leads Washington Trust Bank’s Central Oregon commercial banking portfolios and branch leadership. He can be reached at cjallen@watrust.com.
