Property Watch: A Hobbit Hole That Earns $289 Per Night

Image: Courtesy the homeowner
If you’re not going to New Zealand to see Bilbo Baggins’s OG house any time soon, might we interest you in an Oregon version? It’s called Bag Inn, is currently on Airbnb ($154–289 per night), and is for sale.
It is one of a few Hobbit houses in the region: There’s a private home in Mosier, and the Dome Home in West Linn, which we covered in 2016. But if you want something even more true to the Tolkien spirit, look no further than this auxiliary home on a larger property in Salem.

Image: Courtesy HD Open House
Fans of Peter Jackson’s Lord of the Rings movies will recognize the front façade, which is a faithful reproduction of the films' take on Bilbo and Frodo Baggins’s home in Hobbiton, known as Bag End, which can still be visited as a permanent attraction in New Zealand. Here, just as in the movie version, the cheery yellow entry is tucked under a green roof. Decorative corbels draw the eye down to the two porthole windows flanking the round door. The openings are all trimmed in brick, and the door painted a vivid, recognizable green. (On closer inspection, it’s a traditional, rectangular swing door with wood sidelites, rather than an actual circular door, but props to the clever execution. See the first photo, above.)

Image: Courtesy HD Open House
Construction on the project started in 2020, and took about three years all together, says the homeowner, who originally set out to build a tree house for his kids on the property. When he couldn’t find a suitable tree for that endeavor, he got the idea for a Hobbit hole, realizing that it could be rentable if nice enough. The resulting building is constructed of reinforced concrete, which holds up the weight of the earth on top, giving a whole new aesthetic to the term “concrete bunker.”
In the words of Tolkien, Hobbit holes are “not a nasty, dirty, wet hole, filled with the ends of worms and an oozy smell.” To that end, extensive waterproofing was completed to make the installation compatible with the Willamette Valley climate, including three different layers of waterproofing on the exterior, and closed-cell spray foam insulation on the inside.

Image: Courtesy HD Open House
Tolkien also said that Hobbit holes “mean comfort,” and, indeed, the owner’s goal was to achieve a cozy and warm home that “any Hobbit would be proud of.” Inside, he applied decorative wood panels, covered concrete beams with wood, and created a rounded brick niche for the fireplace. Beside it, a pipe is concealed with stamped stucco and fake moss to mimic a growing tree.

Image: Courtesy HD Open House
The 1,000-square-foot plan features a separate bedroom and bathroom, both with custom carved doors commissioned for the space. The bathroom is luxe, with an eight-foot walk-in shower clad in stone, a large soaking tub, stone sinks, and a custom wood vanity.

Image: Courtesy HD Open House
As for the $1 million price tag, keep in mind the property also features a human-size main house with 4,645 square feet, vaulted ceilings, and five bedrooms, on 2.47 acres. You could keep the Hobbit house as the main draw, or even create an all new Hobbiton stateside.
Listing Fast Facts
- Address: 2784 Ballyntyne Rd, Salem, OR 97302
- Size: 4,645 square feet, plus a 1,000-square-foot Hobbit house
- List Date: 8/17/2023
- List Price: $1,000,000
- Listing Agent: Robert Lucas, eXp Realty LLC
Melissa Dalton is a freelance writer who has focused on Pacific Northwest design and lifestyle since 2008. She is based in Portland, Oregon. Contact Dalton here.
Editor’s Note: Portland Monthly’s “Property Watch” column takes a weekly look at an interesting home in Portland’s real estate market (with periodic ventures to the burbs and points beyond, for good measure). Got a home you think would work for this column? Get in touch at [email protected].