Categories: Market Watch

4 Reasons I’m Still Bullish on Boise Real Estate Market

You might have thought I was off my rocker if I told you Boise, ID was the fastest growing real estate market in the country over the last 2-4 years. According to the most recent data from Zillow, median home prices in Boise are up 70.09% over 4 years and 62.66% over 3 years, which both rank #1 among the top 100 metropolitan areas in the US.

This has prompted many in the industry to regard Boise as the nation’s hottest housing market. Many experts have pointed out that Boise’s real estate market is overpriced compared to household income, with some going as far as to predict that prices might drop like a hot potato this year. However, there’s plenty of data to suggest that Boise’s market has room for growth. Here’s four reasons to still be bullish on Boise.

Migration Trends

One of the main factors contributing to Boise’s housing market growth has been a heavy inbound migration flow. These new residents are fleeing the more expensive housing markets of the west coast. According to United Van Lines most recent moving study, Idaho recorded the 9th highest inbound move percentage (60%) out of all the lower 48 States.

StateInbound Move %
Vermont74%
South Dakota69%
South Carolina63%
West Virginia63%
Florida62%
Alabama62%
Tennessee62%
Oregon61%
Idaho60%
Rhode Island59%

Many of the top 10 inbound states are absorbing residents from expensive housing markets in the northeast and west coast.  Look for this trend to continue in 2022 as inflation pushes many remote workers to flee to more affordable housing markets.  

Inventory Growth

While many of the nation’s top metros dealt with housing inventory shortages, Boise has risen to meet the challenge of a growing population.  Out of the top 100 metros in the US, Boise saw the largest increase in for-sale inventory year-over-year (+42.61%) by far and the second largest increase in total sales year-over-year (+45.18%).  

MetroTotal Inventory 2020-12-31Total Inventory 2021-12-311 YR. % Change
Boise City, ID2,2603,22342.61%
Stockton, CA1,1291,30215.32%
Austin, TX7,2888,35014.57%
Tucson, AZ3,5483,6934.09%
Milwaukee, WI3,9234,0262.63%
Ogden, UT1,5011,5332.13%
MetroTotal Sales 2020-12-31Total Sales 2021-12-311 YR. % Change
Provo, UT7131,14760.87%
Boise City, ID1,2131,76145.18%
Fort Collins, CO7251,03442.62%
Urban Honolulu, HI9081,23636.12%
Little Rock, AR1,1601,42622.93%

The new construction industry is booming in Boise thanks to a large amount of developable land.  The fact that total sales has been keeping pace with growing inventory proves that houses really are flying off the market in Boise. 

Household Income

Many housing market experts have cited Boise’s large price to income ratio as evidence that Boise’s market growth cannot sustain.  While it’s true that Boise’s price to income ratio of 8.23% is 5th highest among the top 100 US Metros, it’s also true that Boise’s median household income has been among the fastest growing in the US as well.  

According to the most recent data from US Bureau of Economic Analysis, Boise saw the second largest increase in median household income (+9.74%) out of the top 100 US metros in the last 2 years behind only Charleston, SC.

Metro2020 Median income2019 Median Income% Change
Charleston-North Charleston, SC$70,505$63,64910.77%
Boise City, ID$66,466$60,5689.74%
Riverside-San Bernardino-Ontario, CA$70,954$65,1218.96%
Deltona-Daytona Beach-Ormond Beach, FL$54,533$50,3608.29%
Seattle-Tacoma-Bellevue, WA$94,027$86,8568.26%
Albuquerque, NM$58,512$54,0728.21%

So despite the higher-than-average income to price ratio in Boise’s housing market, wage growth suggests that there could be more gas in the tank for Boise.  If the prevailing migration trends continue in 2022, look for more high wage earners to settle in Boise’s metro area, pushing the median sales prices even higher.  

Culture

If you thought Boise was all national parks and no play, think again.  Boise is the cultural center of Idaho and is full of fun entertainment and cultural fares from across the globe.  You can opt for the fine dining experience at Chandler’s or go for the famous Mexican Steak House Barbocoa’s

In conclusion, based on all this data, Boise’s market growth is far from a fluke. In fact, if migration patterns and median income trends remain the same, it’s growth is likely far from over. Look for median sale prices to climb even further in 2022, as inflation pushes up the cost of new construction.

Join Zach this week as he takes a trip to Nashville TN and Dolly Partons land, median household analysis and the best places to wine and dine. Market Watch with Zach Parker #Nashville.

Zach Parker

Zach is a digital marketing expert, solopreneur, and Owner of ProSource Media. As a crypto holder and owner of several investment properties, he closely monitors market and data trends in both real estate and blockchain. Zach covers Market Watch at Realty Biz News

Recent Posts

ERA® Real Estate fortifies presence in Cedar Rapids with affiliation of Graf Real Estate ERA Powered

ERA® Real Estate, a global franchising leader within the AnywhereSM family of brands, announced today…

32 mins ago

Tips for Maintaining a Newly Built Home

Congratulations on moving into your newly built home and I hope you enjoy many happy…

52 mins ago

CubiCasa’s new app makes it easy for real estate agents to create highly accurate floor plans

Mobile floor plan scanning app provider CubiCasa is making its service available for free in…

59 mins ago

What Is Loan To Value After Repair Value (ARV)?

Purchasing homes to renovate and flip is a common real estate investment strategy. So, too,…

2 hours ago

How to Keep a Spotless Home: Five Easy Steps

Having a clean home is one of the best ways to relieve stress. When you…

22 hours ago

Tips for Working Best with Marketing Directors

A Conversation with Lucinda Brasington Chief Operating Officer, ERA Wilder Realty, Columbia and Charleston, S.C.…

23 hours ago