The Boise housing market has experienced a significant increase in demand. This has driven up the prices of homes. However, this trend is not likely to continue indefinitely. It will be important to develop a strategy for keeping the city’s housing supply at a level that is adequate for its population. In addition to this, the needs of specialized populations, such as students and the homeless, must be considered.
One of the most significant trends in the local market is the growth of the rental sector. Rents have increased by five percent over the past year. As a result, fewer people have been able to afford home ownership. Those who are able to, will have to make some tough choices.
Another major boon to the Boise housing market has been the influx of remote workers. These individuals were attracted to the area’s affordability and the outdoorsiness of the location. Over the past decade, the average price of a home in the region has increased by 55.5%, the largest increase among the nation’s 50 most populous metropolitan areas.
As of September, the inventory of existing single-family homes in the Boise metro area was at a 3.0 month supply. A month supply is defined as enough listings to meet the demand for a certain number of homes for sale. Currently, there are 2,464 active listings in the area. Considering the current rate of growth, a 4.0 to 5.0-month supply would be necessary to keep up with demand.
Similarly, a 6.4-month supply would be required to meet the demand for new construction in the Boise metro area. However, builders are now concentrating on developing speculative housing projects. Some are slashing the number of choices made for the homebuyer and streamlining the construction process.
The same fundamentals that drove home prices up in the past two years are also likely to drive them up in the coming years. For example, the average commitment rate on a 30-year fixed-rate mortgage has risen from 3.45% in January to 5.23% in February.
The Boise housing market is a roaring success. Prices have been rising faster than in most other metro areas for the past ten years, and the housing inventory is still tight. Although there are still some uncertainties, the market should remain a hotbed of activity.
The Boise housing market is not without its shortcomings, however. While there are positives to be found, such as a low unemployment rate, there is room for improvement. There is a need for more development of underutilized land, as well as a need for affordable housing. Both of these factors must be considered in order to create a sustainable housing market.
Homeownership is an expensive proposition, and the threat of inflation will likely increase costs even further. The Boise housing market is a good example of how a strong economy can create confidence in a market. The Fed is already raising the benchmark interest rate, which will likely affect home prices.
There are plenty of other places to look for the best deal, too. Among the cheapest is Idaho Falls, Lewiston, Pocatello, Sun Valley, and more. To find out which of these cities has the best home building options, visit Cedar and Sage Homes. Choosing a reputable Boise custom home builder is the first step to having a great home.