Bend, Oregon has seen explosive growth over the past decade. With breathtaking views of the Cascade Mountains, a thriving arts scene, and access to world-class outdoor recreation, it’s no surprise that more people are relocating to—or reinvesting in—this high-desert gem.
But if you’re ready for a change, you might be wondering: Is it cheaper to build a new home or remodel your existing one in Bend, Oregon? The answer depends on your goals, your budget, and the current housing market conditions in Central Oregon.
This guide will break down the costs, benefits, and local factors to help you decide which option makes the most sense for your lifestyle and long-term investment.
Current Housing Market Snapshot in Bend
Before diving into construction vs. renovation, let’s look at what’s happening in Bend’s real estate market. As of mid-2025:
- The median home price in Bend is over $750,000, according to Redfin.
- Inventory remains low, making existing homes more competitive.
- Labor and materials are still experiencing moderate inflation from the post-pandemic building boom.
With land availability tightening, many homeowners are now considering remodeling as an alternative to building from scratch. Still, new builds remain an attractive option for those who want custom features and modern efficiencies.
Cost Comparison: Remodeling vs. Building New in Bend
Remodeling Costs in Bend
According to HomeAdvisor, remodeling a home in Oregon typically costs:
- $20,000–$75,000 for moderate renovations
- $100,000+ for major renovations or full-home remodels
- Kitchen remodels: $25,000–$50,000+
- Bathroom remodels: $10,000–$30,000+
Costs increase depending on:
- Structural changes
- Permit requirements
- Material upgrades
- Age and condition of the home
Older homes in Bend may require code upgrades (e.g., electrical or plumbing), which can quickly escalate project budgets.
Building a New Home
In 2025, the average cost to build a custom home in Central Oregon ranges from:
- $250–$400 per square foot
- Total cost for a 2,000 sq ft home: $500,000–$800,000+
Key expenses include:
- Lot purchase
- Excavation and utility hookups
- Permits and design fees
- Construction labor and materials
While this is a bigger upfront investment, new builds offer long-term energy savings, fewer maintenance issues, and full design freedom.
Pros & Cons of Each Option
Remodeling: Pros
- Keep your current location and neighbors
- Potentially lower upfront cost
- Shorter timeline for small projects
- May increase resale value (especially kitchen & bath upgrades)
Remodeling: Cons
- Surprises like mold, wiring, or foundation issues
- May require living elsewhere during construction
- Limited design flexibility
- Could be subject to zoning restrictions
Building New: Pros
- Full control over layout, finishes, and systems
- Energy-efficient construction (modern insulation, HVAC, windows)
- Lower maintenance costs in the first 10–15 years
- Opportunity to build outside high-demand zones
Building New: Cons
- Higher cost and longer timeline
- Permitting delays
- Land costs in Bend are rising
- May face development impact fees and infrastructure requirements
Permits & Local Building Regulations in Bend
Whether you build or remodel, you’ll need to work with the City of Bend’s Building Safety Division to pull the appropriate permits.
For remodels:
- Permits are needed for structural, plumbing, or electrical changes.
- Inspections are required at various stages.
For new construction:
- You’ll need zoning approval, site plans, and utility hookup permits.
- Construction plans must follow Oregon Residential Specialty Code.
For either path, hiring a builder like Cornerstone Residential ensures code compliance and local expertise in Central Oregon building practices.
How to Decide What’s Right for You
Ask yourself:
- Does my current home have good bones?
- Am I emotionally tied to my location?
- Do I want total design control?
- What’s my long-term financial plan?
If your home is structurally sound and already in a great location, a remodel might make more sense. But if you’re looking for modern efficiency, custom features, and a fresh start, building new could be a better investment.
Building a Custom Home in Central Orego? Start with Cornerstone Residential!
Cornerstone Residential Can Help You Build or Remodel With Confidence
At Cornerstone Residential, we’ve helped homeowners across Bend and Central Oregon turn their dreams into real, livable homes—whether it’s through thoughtful remodels or new construction projects. We offer:
- Custom home builds with energy-efficient design
- Whole-home remodeling and room additions
- Plumbing and HVAC system planning and installation
- Permit support and inspection-ready work
We’ll walk with you every step of the way to make sure your investment is built to last.
Final Thoughts
So, is it cheaper to build or remodel in Bend, Oregon? Remodeling is often more affordable upfront, but it may come with hidden costs and limitations. Building new gives you the freedom and efficiency of a modern home—but requires more planning, land acquisition, and budgeting.
No matter which path you choose, trust a local expert like Cornerstone Residential to deliver quality craftsmanship and seamless project management across Central Oregon. Reach out today to start planning your dream space—old or new.