From your blog, it looks like you were pricing sizable houses rather than higher density housing like a 2br/2ba condo, which can be found for much less. Although I grew up in Alaska, I have no regrets about buying a modest condo next to trails and with a short bike commute instead of a larger place further from everything I care about. Anyway, there would be more incentive to build high-density housing if more people wanted to buy it instead of writing off the housing market as insane and going elsewhere (be it the eastern suburbs or somewhere completely different as you did).
Prices are lower all across the board in Bend. We were looking into some townhouses in Boulder, and they're still several hundred dollars more than what we pay in a nice part of Bend within walking distance of downtown.
Obviously, but no amount of high-density construction in Boulder will make it cheaper than equivalent accommodations in Bend (unless Bend gets a lot more expensive).
I'm not questioning your decision, but it's worth being realistic about what high-density construction could achieve.
