Sisters is two hearings away from asking the state to approve about 314 more acres inside its urban growth boundary. The city's own math shows exactly what kind of land it is short on. According to the 2025 analysis behind the application, Sisters has room inside its current boundary for 1,026 more higher-density homes, which is more than it expects to need. It has room for only 179 more lower-density homes, the zones where detached houses get built, against a projected need of 1,351.
For a buyer comparing Sisters with Bend, Redmond or Sunriver, that changes how a house inside city limits should be priced in your head. Most of the new construction the town can still add is apartments and townhomes. The expansion meant to fix the detached-home shortage has to clear several more steps after this month before any new lots exist.
The shortage only shows up in one zone
The City of Sisters' final Land Need Report, dated December 5, 2025, used a buildable-land inventory current through July 2023. It projects Sisters will need 1,973 more housing units between 2023 and 2043. That is a 95% increase over the 2,081 units the report counts for 2023. When you split that total by zone type, the picture looks like this:
| Zone type | 20-year unit need | Unit capacity inside current boundary | Surplus or deficit |
|---|---|---|---|
| Low density residential | 1,351 | 179 | Deficit of 1,172 units |
| High density residential | 622 | 1,026 | Surplus of 404 units |
| Total | 1,973 | 1,205 | Deficit of 768 units |
The report sums this up as a deficit of about 750 units and 110 acres over 20 years. It also says most of that gap falls in low-density residential land, an estimated 1,172 units and 135 acres short.
The higher-density surplus does not automatically cover the gap. The report notes that Sisters' recent work on Residential Efficiency Measures was meant to keep higher-density zones from being used for low-density building. For that reason, extra multifamily land "should not necessarily be considered available to meet low-density residential needs." Policy keeps the two pools of land separate on purpose.
What Sisters can still build in town is mostly attached and income-restricted
The nearer-term projects inside the boundary point the same way.
- Sisters Woodlands. The city's compiled report describes a 25-acre former Forest Service property zoned for multifamily residential, with land-use approval already in place.
- Village Meadows. Habitat for Humanity finished 21 affordable family homes there, as The Nugget reported in March 2026 (The Nugget).
- Larch Commons. The same Nugget story described 25 affordable and workforce homes under construction, due by January 2027. A December 2025 Nugget report listed 26 homes, including one market-rate unit, so published counts differ slightly.
- Trinity Place. This is a 40-apartment rental project aimed at households earning 50% to 80% of area median income. The City of Sisters affordable housing page says construction started in winter 2026, with leasing planned for spring 2027.
These projects add real housing for the community. Very little of it lands in the category of a market-rate detached house on its own lot, which is where the 1,172-unit gap sits.
Why 314 acres will not turn into lots this year
The expansion area sits east of the existing boundary, north of Highway 126 and south of Sisters Eagle Airport. The legal description traces lines along Camp Polk Road, Barclay Drive and Barclay Lane and closes on the north right-of-way of US Highway 126. The city's study-area report describes the Barclay vicinity as 48 parcels under county Rural Residential 10 zoning. They mix developed smaller lots with vacant or partly vacant lots of 20 to 30-plus acres.
The preferred concept map lists about 314 gross acres and 202 net acres. The filed legal description puts it at 316.42 acres. Part of the gross figure covers land set aside to protect wetlands, so it is not all buildable residential ground.
Here is the sequence that has to happen first, based on the City of Sisters UGB project page and The Nugget's September report (The Nugget):
- City Council hearing, October 14, 2026, 5 p.m., Sisters City Hall. The Sisters Planning Commission recommended approval on May 21, 2026.
- Deschutes County Board of Commissioners hearing, October 22, 2026, also at Sisters City Hall. The city's October 9 update lists 4 p.m. The Nugget's September report said 3 p.m., so check the time before you go. The County Planning Commission recommended approval on September 10, 2026.
- State acknowledgement, after both local approvals.
- Land stays county land. Once the state signs off, properties inside the new line stay in the county as the Sisters Urban Area Reserve. Their county land uses do not change.
- Area Plan. This starts after local adoption. It maps where residential, commercial, industrial, parks, a school and infrastructure go, and sets zoning and housing types.
- Annexation by petition. Only owners whose land touches existing city limits can apply, and they have to follow a new annexation code. As of September 23, the Council was still working through that code in workshops, the most recent one focused on affordable housing.
The Nugget called this month's hearings "the final steps of a five-year effort." That is true for the boundary itself. For lots, it is closer to the start. Annexation moves one parcel at a time, starting from land next to the city and working outward, and each request must match an Area Plan that has not been drafted yet.
The 58-acre McKenzie Meadow Village property northeast of Sisters High School has had its own rezoning discussion. The Nugget reported in May that it is not part of the preferred concept.
The resale market is running on a separate clock
None of this land math shows up in this fall's sales numbers. Beacon Appraisal Group's September 8, 2026 report shows Sisters single-family homes in August 2026 at a median price of $682,000. It counts 8 sales, a median of 35 days on market and 5.5 months of inventory. Beacon's report from a year earlier showed August 2025 at a $715,000 median, 6 sales, 47 days on market and 5 months of inventory.
| August, Sisters SFR | 2025 | 2026 |
|---|---|---|
| Median price | $715,000 | $682,000 |
| Sales | 6 | 8 |
| Median days on market | 47 | 35 |
| Months of inventory | 5 | 5.5 |
By that comparison, the median is down about 4.6%. Homes sold faster and in slightly larger numbers, and inventory edged up. Two caveats apply. Single-month samples this small can swing a lot. And Beacon's figures leave out condos, townhomes, manufactured homes and acreage. Beacon calculates inventory as current listings divided by the prior 12 months of sales.
So Sisters has two separate supply questions right now. One is how many existing houses are for sale this month, and that number moves with interest rates, seasons and seller timing. The other is how much land the town has for new detached homes. The land question only changes through the six steps above, and the city's own study says the current answer is 179 units. A buyer reading a softer August median is reading the first number. The second number sets the long-term supply that every in-town detached home competes within.
What this changes when you compare a Sisters house
Inside the current city limits, a market-rate detached home belongs to a category whose new supply is close to capped until annexed land comes online. Most remaining in-town capacity goes to higher-density projects, many of them income-restricted. On the Barclay side, a property that ends up inside the new boundary keeps its county Rural Residential 10 uses after acknowledgement. What can eventually happen next to it depends on an Area Plan that has not been written.
A few things are worth checking on any specific property. Is the vacant land around it zoned MFR or low-density residential? Is it inside the city, or in the Barclay area east of town? How did the October 14 and October 22 hearings turn out, once they have happened? The Deschutes County project page and the city's project page both post updates.
Quick answers
Does approval change zoning in the Barclay area right away? No. After state acknowledgement, those properties stay county land as an Urban Area Reserve, and their county land uses stay the same until a qualifying owner annexes under the Area Plan.
Can the public comment? Yes. The city takes written comments for the October 14 hearing through planner Scott Woodford. The county takes written comments for October 22 through Associate Planner Kyle Collins. Both hearings also accept oral testimony.
Why is the gap about 750 units in some places and 768 in others? The report's table subtracts 1,205 units of capacity from 1,973 units of need, which gives 768. The written summary rounds that to about 750.
If you're weighing an in-town Sisters home against options elsewhere in Central Oregon, or you own one and want to know what it's worth while the boundary decision plays out, Kenzie Carlstrom can put the current comps next to the zoning around your street. Start with a free home valuation.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
