There is no doubt Sisters, like other Central Oregon cities, is experiencing unparalleled growth. That growth is accompanied by the usual benefits and growing pains one would expect.

The population of Sisters has grown roughly 185 percent since 2000, an increase of nearly 1,800 people for a total population around 2,800. Deschutes County and the state experienced population growth of 59 and 21 percent respectively. The Portland State University Population Center estimates future growth at 2.6 percent a year, which means continued strong growth. This would add nearly 2,000 people and more than 800 households over 20 years.

The city added more than 350 new housing units since 2010 within the urban growth boundary (UGB). At the same time, the city has added an estimated 282 households, so the production of new housing outpaced the growth in resident households. However, second homes and other vacation properties make up for much of this difference and contribute to an overall estimated vacancy rate of 22 percent.

Projected future demands for a wide range of housing include an estimated 60 percent for owner households (including second homes) and 40 percent for renter households. An estimated 1,057 units at all income levels will be needed, but especially for lower income households. Demand will continue for houses at the median and upper income ranges.

Sisters’ recently completed 2019 Housing Needs Assessment determined that the city’s existing vacant land can accommodate 835 dwelling units, leaving a deficit of 222 units and a shortage of 67 acres on which to build.

New and expanding businesses are diversifying a once tourist-based economy, with more employment opportunities. The increase in short-term rentals within the city helps provide more lodging options for tourists, while at the same time threatening the character of established neighborhoods, requiring new city regulations to govern the location and licensing of short-term rentals. A number of short-term rentals used to be long-term rentals, cutting into the pool of needed long-term rentals.

Since the beginning of the 2019–2020 fiscal year on July 1, 25 residential building permits for single-family dwellings have been approved, plus a building permit for a 27-unit multi-family apartment, with a request for another 24-unit multi-family development in the same area. Two other apartment projects were recently completed and are now occupied—a 48-unit affordable apartment complex and a 22-unit market rate project.

Commercial construction projects, either proposed, approved, or under way, include a 26,900-square-foot warehouse for Laird Superfoods, a new garage and office for Davis Towing, an additional storage unit building at Sisters Rental, and a new Ski Inn with a taproom and five lodging units upstairs. Several new work/live structures in the light industrial zone are under construction. Additionally, there are plans for expansion of Ponderosa Forge and a new contractor storage site in the North Sisters Business Park.

The national chain, Dollar General, plans to build a new store in the highway commercial zone at the west end of town. A new master plan has been filed for a mixed-use project behind BiMart, including approximately 26,000 square feet of commercial space with adjacent multi-family apartments.

The largest project, already under way, is Hayden Homes development of 200 residential units in McKenzie Meadow Village on McKinney Butte Road.

The U.S. Forest Service property on the west end of town is for sale, with 13 acres already purchased for light industrial development. Another parcel is for sale on West Cascade Avenue downtown.

With all this growth, the Planning Commission and the Housing Policy Advisory Board will undertake a UGB expansion analysis for properties within a half mile of the Sisters city limits. •