Homeowners in Central Oregon often face a major decision: should you remodel your current home or build a new one from the ground up? Both options offer unique advantages and challenges, and the right choice depends on your budget, timeline, lifestyle needs, and long-term goals. With evolving real estate trends and construction costs in 2025, understanding these factors is more important than ever.
At Cornerstone Residential LLC, we specialize in both custom home construction and high-quality remodeling projects across Bend, Redmond, Sisters, and surrounding Central Oregon communities. Here’s a comprehensive guide to help you decide whether remodeling or building new makes more sense for you.
Understanding the Central Oregon Housing Landscape
Central Oregon’s real estate market continues to evolve. According to Redfin, the median sale price in Bend remains above $700,000 in 2025, with inventory slowly increasing. This dynamic market is encouraging many homeowners to weigh the costs and benefits of improving their existing property versus starting fresh with a custom build.
Additionally, construction costs have stabilized after the surge in 2021–2023, but material and labor availability still impact timelines and budgets. Understanding these local factors is essential before making your decision.
Option 1: Remodeling Your Existing Home
Remodeling is often the first choice for homeowners who love their neighborhood or want to preserve the character of their existing property while making significant improvements.
Pros of Remodeling
- Cost-Effective (Sometimes): Remodeling specific areas. According to Remodeling Magazine’s Cost vs. Value Report, mid-range kitchen remodels in the Pacific region average about $80,000, often yielding strong resale value.
- Faster Timeline: Remodeling projects usually take less time than building new, particularly for targeted updates. A kitchen remodel might take 6–12 weeks, while a full custom home can take 9–18 months.
- Preserve Character: Many Central Oregon homes feature architectural charm worth keeping. Remodeling allows you to maintain unique details while modernizing functionality.
- Location Advantage: If you’re in a desirable neighborhood near schools, trails, or downtown Bend, remodeling lets you stay where you are while improving your lifestyle.
Cons of Remodeling
- Structural Limitations: Older homes may limit how much you can change without major reconstruction.
- Surprise Costs: Hidden issues (like outdated wiring or plumbing) often arise during remodels, affecting budgets.
- Permitting Complexities: Significant remodels may still require extensive permits, especially for additions or structural changes.
Option 2: Building a New Custom Home
Starting from scratch offers the opportunity to design every detail to match your vision, lifestyle, and future needs.
Pros of Building New
- Complete Design Control: From floor plan to finishes, a custom home gives you total freedom over layout, energy efficiency, and functionality.
- Modern Efficiency: New construction allows you to integrate the latest technologies, energy-efficient systems, and sustainable materials. According to the U.S. Department of Energy, energy-efficient homes can reduce utility costs by 20–30%.
- Lower Maintenance: A new home comes with new systems, materials, and warranties, reducing unexpected repairs and maintenance costs for years to come.
- Long-Term Value: While upfront costs may be higher, new homes often appreciate more consistently and require fewer updates in the future.
Cons of Building New
- Higher Upfront Costs: Custom builds generally cost more overall than remodels. Land acquisition, permitting, and infrastructure can add significant expense.
- Longer Timeline: A new home typically requires 9–18 months from design to move-in.
- Relocation Considerations: If you love your current neighborhood, finding comparable land nearby may be challenging.
Cost Comparison: Remodel vs. Build New
While costs vary widely, here’s a general breakdown for Central Oregon in 2025:
- Remodeling: $150–$300 per sq. ft. (can be higher for luxury or complex projects)
- Building New: $300–$600+ per sq. ft., depending on design, finishes, and site conditions
Remember to consider long-term costs as well. Remodeling may seem cheaper initially, but ongoing maintenance and limitations can add up. A new build may cost more upfront but could offer greater efficiency and lower lifetime expenses.
When Remodeling Makes Sense
- Your home’s foundation and structure are in good condition.
- You love your neighborhood and don’t want to relocate.
- Your needs can be met through targeted improvements or additions.
If this sounds like you, consider services like home additions or outdoor living space transformations to elevate your home without starting over.
When Building New Is the Better Choice
- Your current home requires extensive structural work or has foundational issues.
- You want a custom layout tailored to your lifestyle.
- You’re seeking advanced energy efficiency and smart home features.
In these cases, starting fresh with Cornerstone Residential’s custom home design and construction may be the most strategic investment.
Final Thoughts: The Right Path Depends on Your Vision
There’s no one-size-fits-all answer. The decision between remodeling and building new depends on your goals, budget, property condition, and how you envision living in Central Oregon for years to come.
Whether you’re planning a thoughtful remodel or dreaming of a brand-new home, Cornerstone Residential LLC brings over 24 years of experience delivering exceptional craftsmanship throughout Bend, Redmond, Sisters, and beyond. We guide you through every step—from design to completion—ensuring a seamless experience and a home you’ll love for decades.
Ready to explore your options? Contact our team today to schedule a consultation and discover the best solution for your Central Oregon home.