A view of Bend looking west from Pilot Butte in 2018. 

The Bend-Redmond area was ranked No. 5 in a recent 2023 Milken Institute Best Performing Cities index, up from last year’s No. 10 ranking.

Bend-Redmond’s Milken rankings

How the Bend-Redmond area ranked during the past three years:

2021

1. Idaho Falls, Idaho

2. Logan, Utah, Idaho (metropolitan statistical area)

3. The Villages, Florida

4. St. George, Utah

5. Daphne-Fairhope-Foley, Alabama

13. Bend-Redmond (metropolitan statistical area)

2022

1. Logan, Utah-Idaho (metropolitan statistical area)

2. St. George, Utah

3. Coeur d’Alene, Idaho

4. Redding, California

5. Idaho Falls, Idaho

10. Bend-Redmond (metropolitan statistical area)

2023

1. Idaho Falls,  Idaho

2. Logan, Utah-Idaho (metropolitan statistical area)

3. St. George, Utah

4. The Villages, Florida

5. Bend-Redmond (metropolitan statistical area)

— Source: Milken Institute

There was a time when Bend ranked No. 1 for its strong job and wage growth and robust high-tech presence. But in 2021, the region sunk to No. 13 because of housing affordability and broadband access. The institute’s rankings spotlight how small cities generate the bulk of the nation’s gross domestic product, according to the Milken Institute.

“While Bend does well in the broadband access — ranking third on that metric in 2021 and sixth in the current year’s rankings — the city suffers in terms of housing affordability, where it consistently ranks in the bottom fourth quarter of small cities,” said Maggie Switek, Milken Institute director of regional economics. “One-year high-tech GDP growth and short-term job growth slowed considerably in Bend between the 2020 and 2021 rankings. Since then, the city has regained some of its momentum in both high-tech GDP and job growth, ranking 56th and 38th in these two metrics in the 2023 report.”

Bend best small city in United States for tech, wages and jobs

Bend best small city in United States for tech, wages and jobs

The rankings are based on data from 2021, the first full year post-pandemic recovery from related closures and restrictions imposed on communities to thwart the spread of COVID-19.

Bend’s high median housing prices remain a stumbling block for many businesses trying to attract and retain a workforce, said Katy Brooks, Bend Chamber of Commerce CEO. During recent nursing contract negotiations at St. Charles Bend, worker retention and recruitment were prime drivers in raising wages for starting nurses.

“Our increase in ranking was driven primarily by wage growth in the region,” Brooks said. “It also reflected our strong tourism industry growth over the last year. It will be interesting to see whether the new state and funding and housing programs can provide some relief for our workforce.”

Wages in the Bend and Redmond communities continues to outpace other similarly sized communities, said Jon Stark, Economic Development for Central Oregon CEO.

“These statistics indicate the benefits of a broad-based economy for thriving industries such as high tech,” Stark said in a prepared statement. “Companies are attracted to start, move and grow their businesses in areas with a concentration of high-skilled talent and incredible high quality of life.

“The (index) highlights the strengths of our region in attracting and growing businesses.”

The average employment for Central Oregon’s high-tech sector has grown by 50% over the past five years, according to data from the Oregon Employment Department. In 2021, average industry wages paid in Central Oregon were $116,579, accounting for over $460 million in covered payroll for the region, according to EDCO.

Central Oregon cultivates entrepreneurs

Central Oregon cultivates entrepreneurs

The index shows that the top-performing cities have several common themes: vigorous and growing high tech sectors, rebounding leisure and hospitality sectors and above average broadband access, according to a statement by Milken. The institute annually tracks economic performance of about 203 small U.S. metropolitan statistical areas.