Bend Oregon Urban Growth Boundary.
Impacts on availability of West Side Bend lots and new homes.
Skylight Homebuilders is keeping a close watch on developments in the City of Bend Steering Committee for the Urban Growth Boundary (UGB).
The UGB defines the areas which land owners can develop to provide lots and housing inside the City limits.
The latest decision on Thursday October 22 2015 moves to approve an area for expansion of only 1800 acres as compared to 8,000 acres that was contained in the 2010 expansion plan vetoed by the State of Oregon.
This expansion is to accommodate growth through 2028.
Of that 1800 acres only a small amount is on the West Side of Bend ( see map below), and all of that is an expansion of the NorthWest Crossing development.
Quotes are from a recent article by the Bend Bulletin reporting on the decision and discussions by the Steering Committee members, which include all of the City Council members.
In summary: Councilors have stated that this expansion may be the last one on the West Side of Bend. Brian Rankin, a city planner overseeing the expansion process, noted “This expansion could represent the city’s last growth toward the west”.
Councilor Roats “reiterated his argument that an expansion as small as the one being proposed is unlikely to create enough new houses to bring the cost of living down”.
For potential home purchasers that wish to live and play on the West side of Bend, this development is of great importance.
Our forecast: Shortage of supply of single family home sites and higher prices. The West side of Bend will be impacted the most. Home sites on the West side of Bend have been in short supply for the last several years. Lots from the UGB expansion are not expected to come on line for 4 to 5 years due to numerous factors. When the new lots become available, due to the limited amount of land being added to the boundary, and the prospect that this is the last expansion of the boundary on the West Side of Bend, lot prices and home prices may rise substantially.
The expansion on the West Side, will most likely not all be single family home sites. The density requirements imposed by administrative rules from Salem, have moved the Steering Committee to adopt a ratio of housing types, which is going to shift the makeup of new neighborhoods to a much higher density, with multi family housing being around 45% up from the market approach of supply and demand which was around 20%.
Our math then says that only 55% of the West Side acreage will be developed into single family home sites, and their sizes may be smaller to fit within the density requirements being adopted in the UGB expansion plan.