Building Costs Per Square Foot in the State of Oregon, USA

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Oregon 16844 Downey Road Bend OR97707 - 3 Bed and 3 Baths with 2 Attached Garages on Gross Floor Area 2,334 sqft - Built in 2021 - Price $874,000 (3)

Newly Built House in Oregon 16844 Downey Road Bend OR97707 – 3 Bed and 3 Baths with 2 Attached Garages on Gross Floor Area 2,334 sqft – Built in 2021 – Price $874,000 (3)

Residential Construction Market Analysis in the State of Oregon, USA

Building costs are 3% below the national average in the state of Oregon, and equivalent to the states of Indiana, Iowa, Missouri, Montana and Utah. Most people know Oregon for its exotic and varied landscapes with volcanoes, glaciers, and mountains, making it a unique sight during the winter when snow covers the pine trees that fill all its forests. Do not let its rainy storms scare you, it is a beautiful place to live, and every year more people choose it.

If you are looking for properties in the Beaver State, then it is important that you are prepared for what awaits you: from changing prices, increases, and decreases in value within the same month, and a great diversity of construction types, it is very easy to feel overwhelmed by this state. If this is your case, don’t worry, here we will tell you how the real estate market is for residential construction in Oregon, giving you some tips on which are the best cities, what type of construction abound, and much more.

Oregon Construction Outlook

Oregon is one of the states that most embraces the nature that surrounds it, which is perfect for lovers of outdoor activities but also means a risk for construction. It is important that you anticipate that it is likely that if you are building the house or a building from scratch, the rains in this state can slow you down. In addition, the winters are very cold so the house must be conditioned to withstand them.

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In the middle of the forests, there are some houses built in the form of cabins, with wooden exteriors, but this is not usually present in the cities and they are usually more for tourists or vacation homes. In the cities, you will see the typical brick houses, with an architectural style of the 70s or 80s, although their interiors are usually renovated so there is nothing to worry about.

Oregon Housing Market Analysis and Forecast

Due to the pandemic, between 2020 and 2021 Oregon was one of the states where many vendors were wary of opening their doors to strangers who could carry the virus. This meant that around 1 in 4 sellers has chosen to close their doors (which is one of the highest numbers in the entire country), making it difficult for some properties to sell. Fortunately, this 2022 the situation improved and everyone is already receiving visits, which together with other factors of the economy in general caused the number of properties that were sold to increase exponentially.

Today it is estimated that there are more than 6,000 houses listed and the expected time for the sale to be completed in less than forty days, which is very encouraging for sellers. Oregon is an expensive state when compared to southern states (which in some cases have a similar composition in terms of population), but considering that it is located in the western region, prices are understandable.

Property values ​​are expected to rise 0.98% each month this year, for a total of nearly 12%. Oregon is a much more attractive state for sellers than buyers, as high demand and low inventory are causing listing prices to skyrocket across the state. In any case, this is not bad for investors, since it shows you that there are possibilities to recover your investments quickly. For buyers looking for their own home, it’s not all negative, although home values ​​are slightly higher than the national average and rising rapidly, that’s not to say you can’t find some hidden gems.

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For real estate investors, Oregon is a great option for investing in the western United States, especially in larger cities like Portland and Salem, where housing demand is always high. Before investing, it is always important to investigate what types of properties are profitable and what neighborhoods are the best to buy, so it is advisable to be advised by a professional.

Oregon Average House Price (Median Home Price)

In this last month, the average sale price of a median home is $470,000, although its estimated value is $480,000, which shows a slight drop in prices that can help buyers. In any case, do not expect this drop to last long, it is believed that from July 2022 prices will rise again.

If you are looking to invest or buy a house to live in with your family, in both cases the city of Salem is the best option. You have the tranquility of a small town in the middle of the big city, and you will continue to be surrounded by nature. Plus, it’s much safer than Portland. Now if you are looking to invest in buildings or residential constructions that can be used commercially or for tourism, then Portland is the place for you since you recover your investment much faster.

Albany and Pendleton are the cheapest cities that also offer a good quality of life. Do not expect to see skyscrapers or hear the noise of cars, these are small cities that will make you feel at home as soon as you set foot in them.

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Proposed Residential Building Projects in Oregon

The real estate projects that are coming this 2022 and expected for 2023 in Oregon are very varied. In Portland, there are a few construction companies that bought large pieces of land where they are going to build buildings ranging from 10 to 20 stories. All buildings have a modern style, glass windows, and completely new apartments.

In Salem, there are some groups of investors who have promoted projects of luxury houses, which are worth more than $600,000 but are selling quickly thanks to the great demand. In the case of buildings in Salem, the homes are often seen as modest on the outside, although inside they have all the luxuries you can imagine.

Oregon 18470 S Clark LN Oregon City OR97045 - 3 Beds and 3 Baths with 2 Attached Garages on Gross Floor Area 2,353 sqft - Built in 2022 - Price $1,090,000 (2)

Newly Built House in Oregon 18470 S Clark LN Oregon City OR97045 – 3 Beds and 3 Baths with 2 Attached Garages on Gross Floor Area 2,353 sqft – Built in 2022 – Price $1,090,000 (2)

Building Costs Per Square Foot for Single Family Homes in the State of Oregon, USA

Building costs are 3% below the national average in the state of Oregon, and equivalent to the states of Indiana, Iowa, Missouri, Montana and Utah.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Oregon ranges from $334.54 per sqft to $512.84 per sqft, with the average being $394.81 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Oregon ranges from $203.32 per sqft to $311.66 per sqft, with the average being $239.94 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Oregon ranges from $131.44 per sqft to $199.64 per sqft, with the average being $153.88 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Oregon ranges from $95.92 per sqft to $147.10 per sqft, with the average being $113.21 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Oregon ranges from $77.86 per sqft to $119.24 per sqft, with the average being $91.81 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Oregon ranges from $61.41 per sqft to $94.13 per sqft, with the average being $72.44 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

List of 8 Metropolitan Areas/Cities in Oregon – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 241 municipalities and 1004 special districts grouped into 36 counties in the state of Oregon. The bar chart below indicates that building costs vary in each metro city/town. The construction cost per square foot in each of these metropolitan cities varies from the state and national average by a certain percentage based on the location factor also known as the local modifier.

The percentage deviation of building costs from the National Average for each metropolitan area in Oregon is shown below.

If $X is the Average National Building Cost in the USA, then it will cost the following to build a residential property in each metro city/town in Oregon:

Oregon Average -3% (3% less than X)

  • Adrian 979 -12%
  • Klamath Falls 976 -8%
  • Bend 977 -5%
  • Grants Pass 975 -5%
  • Eugene 974 -3%
  • Pendleton 978 -3%
  • Salem 973 -2%
  • Portland 970-972 10%

The Metropolitan Area List above as well as the Bar Graphs below shows that Adrian is the cheapest city to build a private home in the state of Oregon, and Portland is the most expensive city to build a home. Building costs are -12% below the national average in the city of Adrian.  Property developers will pay 10% above the national average to build a house in the city of Portland.

Cheapest Places To Build in Oregon:

Adrian is the cheapest to place to build at -12% below the national average, followed by Klamath Falls at -8%. The third cheapest places to build are Bend and Grants Pass at -5% below the national average. The fourth cheapest cities to build a house are Eugene and Pendleton City at -3% below the national average, followed by Salem City at -2% below the national average.

Expensive Places To Build in Oregon:

If anything between 5% and 10% is considered expensive, then there is one such metropolitan area in the state of Oregon. Home building costs in the City of Portland are 10% above the US average.

More Expensive Places To Build in Oregon:

If anything between 10% and 15% is considered more expensive, then there is no such metropolitan area in the state of Oregon.

Very Expensive Places To Build in Oregon

The most expensive places to build a house in the USA are those 15% above the national average. There are no such places in Oregon.

Oregon State Average Costs:

Private home building costs in the state of Oregon are -3% below the US average. Building cost rates in the metropolitan area of Salem are closer to the Oregon state average by a deviation of 1%. Construction costs in the cities of Eugene and Pendleton are equivalent to the state average. Portland is the most expensive city to build a home in Oregon, and the state of Oregon is number 21 on the national ascending costs scale.


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