Investing in real estate heavily depends on location. Therefore, it’s no surprise that property buyers are currently on the lookout for the top housing markets for 2020. What did come as a surprise (to some) was recent housing market forecast reports naming the Boise real estate market the #1 market for 2020.
Is Boise really one of the hottest real estate markets for 2020? Should you consider investing in Boise real estate this year?
Yes!
We’ll explore why through three factors:
- Boise real estate market data
- Boise real estate trends for 2020
- Data for the best neighborhoods in the Boise real estate market
Related: 10 Best Places to Invest in Real Estate in 2020
Boise Real Estate Market: Mashvisor’s Investment Data
In order to really be the best real estate market for 2020, Boise investment properties should be profitable. So, how profitable is the Boise Idaho real estate market?
This is best answered through real estate data. Where can you get access to such data? Right here, with Mashvisor! Mashvisor’s real estate investment tools allow users to analyze any rental market in 2020. Take a look at Mashvisor’s data of Boise ID real estate.
- Median Property Price: $502,681
- Price per Square Foot: $230
- Price-to-Rent Ratio: 29
- Traditional Rental Income: $1,467
- Airbnb Rental Income: $1,873
- Airbnb Occupancy Rate: 54%
To learn more about Mashvisor’s tools, CLICK HERE!
Boise’s real estate market data shows us that you can earn a high rental income in the city with either rental strategy. So investing in Boise real estate can be quite profitable. But there are other factors to take into consideration besides rental income, which we will look at in our forecast section.
Boise Housing Market Forecast 2020: 4 Real Estate Trends
So, why should you invest in Boise real estate? There are 3 Boise real estate market trends that show why this really is the top location for 2020:
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Boise Is Expected to Be the Fastest-Growing Real Estate Market in 2020
When it comes to market growth, Boise is easily number one according to Realtor.com. Realtor’s 2020 housing market forecast quantifies real estate growth in three ways: sales, prices, and combined growth.
The sales growth in the Boise real estate market is projected at 0.3%. In addition, Boise house prices are expected to grow by a whopping 8.1%. The Boise real estate market actually has a long track record of high appreciation rates. Over the last ten years, Boise house prices increased by over 74%, according to NeighborhoodScout. Over the previous year, Boise’s real estate appreciation rate was higher than a whopping 98.9% of markets in the nation. As a result of its sales and price growth, Boise’s combined growth is expected to be 8.4%.
For reference, Realtor reported the US housing market averages for the same metrics as:
- Sales Growth: -1.8%
- Prices Growth: 0.8%
- Combined Growth: -1.0%
Overall, the US housing market will see a slight drop in combined sales and price growth in 2020.
General market growth is a positive trend that supports successful investing in Boise real estate in 2020 and beyond.
Related: US Housing Market Predictions: What’s to Come in 2020
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The Local Economy Will Bolster Boise Real Estate Growth
Real estate growth often comes about from economic growth. With the Boise real estate market, this is definitely the case. The US economy is expected to slow down in 2020. Boise, however, is headed in the complete opposite trajectory. In the next ten years, the local projected job growth is 50.9%. This is significantly higher than the US average of 33.5%. Boise’s unemployment rate of 2.3% is also better than the national average. With increased growth in the city’s tech industry, household salaries have increased as well. From 2016 to 2017, Boise’s household income average grew by 4.4%. Boise real estate investing in traditional rental properties will continue to be profitable thanks to the strong economy.
Related: Why the Best Cities for Tech Jobs Can Be the Top Cities to Invest in Real Estate
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Airbnb Regulations Have Not Been Established in Boise
Boise rental properties, both traditional and Airbnb, are very lucrative. However, as seen from Mashvisor’s data, Airbnb Boise investment properties are more profitable. But, is Airbnb legal in the Boise real estate market?
State law prevents cities in the Idaho real estate market from banning Airbnb. As a result, Airbnb is not and cannot be illegal in the Boise housing market. Currently, there are no official Boise Airbnb laws.
Recently, however, the City Council made an ordinance proposal to regulate Airbnb. The proposed ordinance had four key Airbnb regulations:
- A permit requirement
- An owner-occupancy requirement (this would make it illegal for real estate investors to rent out properties)
- An operating capacity of one Airbnb unit per property
- An adherence to city code, including provided parking space
The ordinance was meant to apply to only new Boise short-term rentals. In other words, existing Airbnb rentals in the Boise real estate market would be grandfathered.
However, the ordinance received widespread backlash from Boise real estate investors and realtors. Of residents surveyed, 67% opposed the proposed amendments. Since November 2019, the ordinance has been withdrawn. Therefore, as of the time of this writing, Airbnb is still a viable rental property investment strategy in the Boise real estate market.
Although there are no legal restrictions as of now, we strongly recommend Airbnb Boise hosts keep track of any future developments.
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The Boise Real Estate Market Will Be a Hot Seller’s Market in 2020
Due to all of the reasons mentioned, the Boise real estate market will be a hot seller’s market in 2020. According to the PwC’s Emerging Trends in Real Estate 2020 Report, Boise will have high investor demand. Population growth is also increasing the demand for Boise real estate investment properties. Since 2010, the city’s population increased by 18.5%.
Still, Redfin reports that homes for sale receive 2 offers on average, meaning you won’t be caught in the worst bidding wars in the US. And they sell for about 1% below the list price. Since most of the major markets in the US are seller’s markets, the Boise real estate market is still a good choice for investment.
As a real estate investor, you should act when you find a good deal, whether it is a seller’s market or a buyer’s market. And based on the above trends, you should be able to find a profitable rental property in Boise.
We’ve already found some for you. Check them out here.
Best Neighborhoods in Boise: Traditional Rental Strategy
Finally, we arrive at the last section of this blog: where to buy Boise houses for sale. According to Mashvisor, these are the best neighborhoods in Boise for traditional real estate investing:
Maple Grove – Franklin
- Median Property Price: $321,950
- Price per Square Foot: $193
- Price-to-Rent Ratio: 11
- Traditional Rental Income: $2,527
- Traditional Cap Rate / Cash on Cash Return: 4.7%
West Cloverdale
- Median Property Price: $362,428
- Price per Square Foot: $189
- Price-to-Rent Ratio: 18
- Traditional Rental Income: $1,719
- Traditional Cap Rate / Cash on Cash Return: 1.7%
Southwest Ada County Alliance
- Median Property Price: $338,693
- Price per Square Foot: $177
- Price-to-Rent Ratio: 20
- Traditional Rental Income: $1,418
- Traditional Cap Rate / Cash on Cash Return: 1.5%
Sunrise Rim
- Median Property Price: $282,967
- Price per Square Foot: $197
- Price-to-Rent Ratio: 18
- Traditional Rental Income: $1,279
- Traditional Cap Rate / Cash on Cash Return: 1.4%
Best Neighborhoods in Boise: Airbnb Rental Strategy
What about the Airbnb Boise real estate market 2020? Of course, Mashvisor has the answer. According to Mashvisor’s neighborhood analysis, these are the best neighborhoods for Airbnb Boise:
Central Foothills
- Median Property Price: $569,467
- Price per Square Foot: $226
- Price-to-Rent Ratio: 31
- Airbnb Rental Income: $6,071
- Airbnb Cap Rate / Cash on Cash Return: 5.7%
- Airbnb Occupancy Rate: 55.3%
Glenwood Rim
- Median Property Price: $341,053
- Price per Square Foot: $215
- Price-to-Rent Ratio: 21
- Airbnb Rental Income: $2,405
- Airbnb Cap Rate / Cash on Cash Return: 2.8%
- Airbnb Occupancy Rate: 57%
Sunrise Rim
- Median Property Price: $282,967
- Price per Square Foot: $197
- Price-to-Rent Ratio: 18
- Airbnb Rental Income: $2,076
- Airbnb Cap Rate / Cash on Cash Return: 2.6%
- Airbnb Occupancy Rate: 60.4%
West Cloverdale
- Median Property Price: $362,428
- Price per Square Foot: $189
- Price-to-Rent Ratio: 18
- Airbnb Rental Income: $2,284
- Airbnb Cap Rate / Cash on Cash Return: 2.5%
- Airbnb Occupancy Rate: 67.6%
The Bottom Line
The Boise real estate market is the fastest-growing real estate market in 2020. The local positive trends and neighborhood data propel it to one of the top housing markets for 2020.
So, do you want to start investing in Boise real estate? CLICK HERE to begin your 14-day FREE trial with Mashvisor! Mashvisor will help you find the best Boise property in no time.