Investing in Bend area homes for rental purposes has become very attractive. A recent survey of Bend and Redmond homes and apartments shows an increase in monthly rental rates. The economy was cited for the increases and the fall in vacancy rates. More people are choosing to rent than buy and homeowners who have lost their homes to foreclosure and short sales are adding to the demand for rental property. One expert thinks rents could rise as much as 5% this year. Investors have been taking advantage of the Bend short sale and foreclosure market and now have even more reasons to buy low priced distressed real estate. The inventory of new homes for sale in Bend could be affected as well. Construction is not expected to keep pace with shrinking inventories. Bend’s new home market is only a fraction of what it once was making selection for buyers limited. As inventories shrink prices will surely go up and construction will resume. At the present time purchasing Bend investment property and renting it out makes good financial sense.