Cannon Beach, Oregon, has a population of fewer than 1,600 people, but the Cannon Beach real estate market looks more like an exclusive resort than a small coastal town. Home values continue to rank among the highest on the Oregon Coast because demand stays strong while new development remains tightly restricted. Those conditions have created one of the state’s most competitive housing markets.
The Numbers Behind the Headline
One reason Cannon Beach remains so expensive is that it has barely grown. The town’s population has stayed in a narrow range for the past 20 years, with current estimates placing it between 1,361 and 1,512 residents. With so few people and limited room to expand, even small changes in buyer demand can have an outsized impact on home prices.
Median household income sits at $69,375, with per capita income at $68,287, both under the state average of $85,200. Yet buying a home requires far more purchasing power than those numbers suggest. U.S. Census Bureau estimates value the typical home at about $822,800, but that figure trails the market. Recent sales have ranged from $1 million to $1.2 million, while even entry-level three-bedroom homes often start near $925,000. An estimated median value of about $894,000 reflects the middle ground between older U.S. Census Bureau data and today’s higher selling prices.
No matter which home value you use, the affordability gap is impossible to ignore. Based on a median household income of $69,375, an $894,000 home produces a price-to-income ratio of about 12.9. Economists generally consider a ratio between 3.0 and 4.0 to be affordable when local wages support local home prices.
Data USA estimates median annual earnings between $30,000 and $53,000, depending on occupation and gender, with women retail workers earning toward the lower end of that range. Compared with an $894,000 home, that creates a price-to-income ratio of roughly 17 to 29. In other words, many local workers would need decades of gross income to afford a home in the town where they work.
Why the Local Labor Market Doesn’t Set Local Home Prices
The people buying homes in Cannon Beach are often not the people earning local wages. With a median age of 62.2, compared with 38.9 across the U.S., the town has a large population of retirees and remote professionals. Many moved from higher-priced markets with home equity, investment income, or pensions. That outside purchasing power has helped keep the Cannon Beach housing market strong, even as local wage growth has remained modest.
The local economy reflects the same imbalance. Many residents work in public administration, hospitality, and real estate, according to Data USA. Those jobs help keep Cannon Beach running, but they usually do not pay enough to keep up with local home prices. The town has also chosen to limit chain retailers and fast-food restaurants to maintain its small-town feel. That decision has helped preserve Cannon Beach’s charm, but it has also limited the variety of jobs available.
Geography Did the Rest
Even if more people want to buy in Cannon Beach, there is only so much room to grow. The town is squeezed between the Pacific Ocean, Ecola State Park, and the Oregon Coast Range, with Highway 101 running through the middle. Building new homes is difficult because there is very little land left, and strict land use rules make developing the remaining sites expensive.
Despite having more than 2,000 housing units, Cannon Beach supports only about 700 year-round households. The difference reflects a housing stock dominated by seasonal and second homes. As a result, the town appears well supplied on paper, even though housing available for permanent residents remains scarce.
The 2026 Short-Term Rental Correction
The biggest change in Cannon Beach has been the rules around short-term rentals. Today, new permits allow owners to rent out their homes only once every 14 consecutive days. The city started tightening those rules several years ago, and in 2019 it stopped renewing the older permits that allowed unlimited rentals. By early 2026, there were about 200 short-term rental permits across the town, with most operating under the newer 14-day restriction.
In the past, some owners used short-term rental income to help pay the costs of owning a million-dollar vacation property. With new permits limited to just 14 rental days, that option is much less attractive for new buyers. A home that once helped generate income is now mostly a second home.
By limiting rental potential, the city has narrowed the pool of buyers who can justify paying top dollar for a vacation property. That trend is creating a growing divide across the North Oregon Coast. While Gearhart has moved toward a complete STR ban, communities like Manzanita and Pacific City continue to offer more flexible rental options. As a result, local regulations are increasingly shaping where buyers put their money along the coast.
Where the Tax Math Still Favors Buyers
Despite its high property values, Cannon Beach maintains a relatively low effective property tax rate at approximately 0.56%. Based on typical home values, annual property taxes range from roughly $4,500 to $4,800.
Oregon’s Measure 50 limits annual assessed value growth to 3%, helping keep taxable values below current market prices. This difference between assessed and market values helps explain why Cannon Beach’s effective tax rate remains low despite elevated home prices.
What Comes Next for Cannon Beach Real Estate
The Cannon Beach real estate market was never going to become affordable just because local wages stayed flat. The town’s location and buyer profile have always pushed home prices beyond what local workers earn.
In 2026, tighter short-term rental regulations changed the investment equation for some buyers, contributing to pressure at the higher end of the market. Yet the underlying factors behind Cannon Beach’s premium remain intact. With little room for expansion and continued demand from affluent buyers, the town is likely to remain one of the West Coast’s most expensive small communities.
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