The future of Pacific Oceanfront Real Estate investment is the Oregon Coast

[AJ Wong]

For nearly twenty years I've lived within walking distance to the Beach. In general, if I can't hear the waves and surf at sunrise or sunset, I don't feel at home. 

From Pompano Beach Florida to Nicaragua to Venice Beach California, Port Orford Oregon & North Baja California, proximity to the ocean is my leading investment and location criteria.   

Like many investors, investment requirements can be prohibitive to oceanfront or oceanview properties. In most of the places I mentioned, to replicate the housing I had in the past 5-10 years would cost about double in rent and more to purchase. In Venice, my old rental just came on the market..It was previously $4500/month and asking $6500. lol 

Coastal California in particular (or anywhere on the Pacific Ocean - including Mexico) has become increasingly unattainable for most investors or retirees. That was part of the reason I relocated and began investing in the Oregon Coast in 2018..I could purchase for less than the cost of renting..

Pre-Pandemic, real estate on the Oregon Coast were surprisingly affordable, since the 'secret' is out the OR Coast has become a destination for investment, relocation and retirement planning. 

The Coastal environment and remoteness is not for everyone, but for those that desire a 'Big-Sur-esque' experience without the eight figure price point, it can be one of the few attractive and somewhat affordable options. 

I've written about the low inventory and rarity of oceanfront properties on the Oregon Coast. There are only a handful of active listings at any given time. Outside of Cannon Beach, the most luxurious and premier community in Oregon, price points are still relatively attractive in comparison to California, Washington or Florida. 

Oceanfront homes can be found in the $750k range and those that are vacation rental eligible are usually well within the $1M-$1.5M budget. 

Anyone that has driven the Pacific Coast Highway has noticed there is ample vacant land, but the California coastal commission ensures that much of it remains undeveloped. There are areas on California where the cost of permitting and development can exceed the cost of a complete acquisition in Oregon. 

That is not to say that the Oregon Coast is the California Coast. However, it does offer some of the same amenities and investment opportunities that older investment generations experienced in Coastal California throughout the previous decade. 

Areas like Bandon by the Sea Oregon for example, with one of the top public Golf Course's in the world, reminds me a lot of the Monterrey/Half Moon Bay Area and has attracted high net worth investors in recent years. It's not quite Carmel by the Sea but investors do get about 10X the value. 

The Southern Oregon Coast is perhaps the most scenic region on the coast, there are sections that cruise along the Pacific Ocean that are very similar to Big Sur and accessible via day trip for investors from the Bay Area. The most southern OR city of Brookings offers tremendous value, and the difference in taxes, insurance and associated carrying costs for crossing the State Line are considerable in comparison. 

Oceanfront vacant land and even acreage is also still feasible with many local lenders offering ground up construction financing.

Another benefit is that the OR Coast is a second home area which can often improve lending and mortgage terms. 

Oceanfront vacant land and even acreage is also still feasible with many local lenders offering ground up construction financing. 

In general, oceanfront or view property along the Oregon Coast is still attainable for seasoned investors. As populations centers grow, age and expand, the demand for prime oceanfront land and properties is anticipated to accelerate. 

There has been increased interest in waterfront properties in general, Oregon's coastal rivers are some of the most pristine and undisturbed in the country. The Elk River in southern Oregon, in particular is one of my favorite areas on Earth. Lakefront housing and second homes are also very popular as buyers seek unique recreational activities including... bass fishing! 

The Oregon Coast is one of the few places on the Pacific that offers Ocean, Mountains, Lakes, Rivers and Dunes, often within a short drive or same vista. 

I anticipate coastal development over the next decade to mimic the previous 5-10 year growth curve. More modern amenities and infrastructure and upgrading of restaurants, homes and businesses to support the influx of travelers, second home buyers and relocation of families and retirees. 

Some of my top Coastal Towns for investing in Oceanfront or Oceanview RE: 

Bandon Oregon- Home of Bandon Dunes Golf Course. Cute. Quaint and 3 hours from Eugene. 

Florence Oregon- One hour from Eugene and world class recreation. Bonus STR's are eligible. 

Brookings Oregon - First stop from California traveling North. Sizable community with stunning scenery. 

Yachats Oregon - Excellent proximity to Eugene & Salem. Charming 'downtown' and exceptional value for oceanview or oceanfront. Located in Lincoln County so generally not STR eligible or subject to waitlist.

Waldport Oregon- Very reasonable oceanfront properties and homes in Bayshore. Currently not STR eligible. 

Rockaway Beach  - Few areas with direct ocean access and STR eligible. $1M-1.5M is typical sales range.

Lincoln City - Salishan Resort is a premier oceanfront community. No STR's but luxury community and amenities. 

Cannon Beach/ Manzanita - Premier community with close proximity to Portland. Oceanfront are amongst the most expensive in the state. Some very impressive properties.