The Boise, Idaho real estate market has become one of the hottest real estate markets in the country.
Boise’s housing market is being fueled by low mortgage rates, limited housing inventory, and soaring demand, which has resulted in buyers having to pay more than the asking price for many listings in the area. In August 2021, Boise’s median sales price hit a new record of $510,000 – a 34% increase YOY.
Homebuyers working from home and priced out of other markets have left more expensive cities and relocated to Boise, which has driven up values in the city. The Boise housing market has become the nation’s most overvalued market according to a study from Florida Atlantic University and Florida International University. Homes are selling for nearly 81% more than they should.
Boise has one of the country’s highest home appreciation rates, a stable economy, ample job opportunities, and more affordable housing prices than many of its neighboring states.
Even though Boise is a large city with a vastly growing population, Idaho’s capital still has a small-town feel with big-city amenities – hundreds of restaurants and bars, a diverse arts and cultural scene, and great outdoor activities. It makes the city a great choice for real estate investors.
Why Is Boise Attractive to Investors?
A Norada Real Estate Investments study recently ranked Boise as one of best cities to invest in real estate. Home prices are soaring and breaking records as persistently tight inventory and historically low mortgage rates have kept demand high.
Idaho’s capital city has a record for being one of the best cities for long-term real estate investments. Boise’s housing market was ranked as the country’s top market by Realtor.com based on the combined yearly percentage growth in home sales and prices.
Boise is home to several major employers and Fortune 500 companies, which have attracted a younger and more educated workforce to the area. Roughly 40% of the city’s population falls between the ages of 25 and 54.
Boise’s inland location is one of the biggest appeals to residents and investors right now. The pandemic shifted homebuyer preferences with people now looking for more space where they live and closer to where they work.
Compared to real estate prices in nearby California, Washington, and Oregon, Boise’s affordability has been more attractive to real estate investors. This coupled with the higher quality of life means real estate prices are on the rise and creating opportunities for real estate investors.
Investing in Property in Boise, Idaho
Despite low inventory, increasing rents, and increasing home prices, Idaho real estate investors with strong investment strategies can still profit. The city of Boise is continuing to grow – both in population and industry – and investors are creating solutions to combat the low inventory with new construction homes and built to rent communities.
Don’t miss out on Boise real estate investments because of funding. It’s now more important than ever to have a lender capable of helping you:
- Secure a loan with the best price and maximum leverage for your next rental investment
- Close properties quickly and certainly
- Run your construction and rehab projects smoothly
You have several options when it comes to construction loan lenders, but why not choose the nation’s premier lender for real estate investors? If you’re interested in new construction loans in Boise, contact Lima One to learn more.
We’re different from other hard money lenders in Idaho. We have one of the most diverse product suites in the industry, which allows us to help investors reach success no matter their investment strategy. From the initial application to the loan payoff, our lending experts will be there every step of the way.
Get started today and scale your rental property portfolio with Lima One, the nation’s premier lender for real estate investors.
Trends for Real Estate Investors to Watch in the Boise’s Market
1. Rental Demand Will Continue to Increase.
Low interest rates and limited inventory have driven Boise, Idaho’s home prices through the roof over the past year. The city is also experiencing a large inward migration, which is creating an even greater need for rental housing to meet demand.
This demand makes Boise one of the fastest-appreciating markets with no signs of slowing down. For investors, it creates a good, yet somewhat tough situation. No question, real estate investors in Idaho are benefiting greatly from such a dramatic increase in home values in a short period of time. That newfound equity can be deployed via cash-out refinances to help investors scale their portfolios.
On the flip side, prices are increasing along with competition, which could make it challenging to find new investment opportunities that cash flow as rentals or pay off as flips. The good news is this: home values will hold because the demand is so strong.
2. Rental Demand Will Drive Real Estate Prices Up.
Boise’s rent prices are well below the national average, but they are rising rapidly. Rents in Boise jumped 12% YOY. A recent report from the Federal Housing Finance Agency shows how Boise’s rental market has become the hottest in the country.
Pandemic-induced quarantine kept many would-be renters in one place, but as vaccinations have become widely available and cities have reopened, renters are on the hunt for new homes, and rates are soaring as a result.
3. Inward Migration Will Hold Strong.
While several of Boise’s new residents flocked to the city from nearby California and Washington, the majority of them came from other areas of Idaho. In-state moves to the Boise area grew by 6% in 2020, with more than 64,000 Idahoans moving to the Treasure Valley.
Boise’s hot rental and real estate market is driven by certain economic factors, such as low interest rates. High-quality job opportunities and a higher quality of living means the inward migration trends are likely here to stay, which will, in turn, continue to push both rental rates and home values up.
4. New Construction Is Paving the Way
Downtown Boise has turned into an epicenter of new construction projects with nearly a dozen ventures underway.
The projects are dominated by apartment complexes – with nearly 1,100 new multifamily apartments under construction. The plans include rent-restricted units, micro-apartments in former hotel rooms, luxury apartments, and several with traditional market-rate units.
Meanwhile, in the Boise suburbs, local developers have created several single-family build to rent communities for renters seeking the feel and space of a SFR home without the obligation of a mortgage. Right now, 2,500 new build to rent homes are planned and underway in the area to help offset Boise’s demand for long-term rental home inventory.