Boise Idaho is showing up on growth and relocation lists in magazines and blogs covering real estate, business, and outdoors markets everywhere. But a city’s growth is complicated, and there’s never a single statistic that tells the whole story. Boise population has increased by 9.3 percent in Ada County in less than a decade! So, what is driving people and businesses to Boise, and how is that affecting the real estate boom?
It’s no surprise to those who live here that Boise ranks #2 in community pride. Topping the list of attributes that contribute to Boiseans’ love for our city is a strong sense of personal security and a general mutual respect. With dozens of civic organizations covering everything from socioeconomic needs to environmental initiatives, there is room for everyone to serve and connect.
Boise balances the rural, natural beauty of its surrounding landscape with a savvy, urban cultural environment featuring tech giants like Hewlett Packard and Micron. In September 2020, Boise-based tech company, Cradlepoint, announced a $1.1 billion deal with Sweden’s Ericsson. These legendary corporations have laid the groundwork for a rich startup and small business ecosystem.
From startups raising over $70.2 million in venture capital to Boise becoming the third-largest brewery employment in the US last year, it’s no surprise that Boise is labeled as one of the best cities in the US to start a business.
If you’ve been paying attention to real estate in Boise, you know that the housing market is crazier than perhaps it’s ever been. This August, Boise homes hit the median real estate price of $400,000, representing a 12.7 percent increase over 2019. In Canyon County (Boise’s neighbor), median home prices reached $309,900 – an increase of $60,000 over 2019.
This year is showing some of the lowest mortgage rates in decades, with 30 year fixed-rate mortgages averaging 2.93 percent and 15–year fixed-rate mortgages at 2.42 percent. These rates put otherwise unaffordable homes within the buying range of a larger demographic – especially that of first-time homebuyers.
Another contributor to the growth is the pandemic. The lockdowns and social distancing due to coronavirus has spurred people to consider relocating before Boise’s real estate price point creeps higher. Some buyers are seeking a lower cost of living or need more space to accommodate work from home restrictions. They are looking to stretch out a bit, add a home office, and live in an area with access to both urban and outdoor activities. Furthermore, many who can work from home during the pandemic are looking to relocate out of tightly packed, high cost areas making Boise even more attractive.
The culmination of these contributors makes Boise a robust seller’s market with demand at an all-time high and supply disappearing nearly before a home can be listed. Median time on the market is only six days putting Boise’s real estate availability at an all-time low.
Even with new construction, Ada County only has half a month’s inventory of homes available for purchase, approximately 570 homes in total. With the current growth and demand, we will need 4,500 to 6,500 homes available to meet the demand.
The attraction to the greater Treasure Valley isn’t going to let up anytime soon. Boise’s economic growth and livability is bringing more people to the City of Trees.
If you need help navigating Boise’s real estate market – as a buyer, seller, or investor – 360 Real Estate makes your bottom line our top priority. With decades of experience in Idaho real estate, let us bring you the best opportunities Idaho has to offer!