What do experts say about the Idaho Housing Market Forecast 2022? Read on as we give you a sketch of the Idaho real estate market and its drivers.
The U.S. real estate market went wild in 2021 as property prices skyrocketed, the demand for property rose to unexpected proportions, and housing inventory dipped to an all-time low. However, the real estate market make-up varied from state to state. What would it be like this year?
Aside from looking into the current state of the housing market in Idaho, we will also identify the best cities in Idaho for making money in real estate, and share with you a couple of tips on how to make your real estate investment strategy work for you.
A Peek at Idaho
Idaho is the 13th largest state in the United States. It is famous worldwide for its potatoes, but there is more to Idaho than just flavorsome spuds. It is also known as the Gem State because it churns out 72 types of precious and semi-precious stones. Based on the 2010 Census, Idaho houses close to 1,570,000 people in its 83,557 square miles of land.
The city’s complexion is a mix of sophisticated and small-town. Idaho’s major industries are agriculture, manufacturing, and tourism. Its picturesque scenery and abundance of opportunities for outdoor fun welcome more than 20 million tourists to Idaho yearly.
Idaho Housing Market Forecast 2022
This section shares the predictions for 2022 and brief analysis of a couple of figures from these predictions.
Real estate experts believe that the 2022 U.S. housing market will continue the trends that have governed the industry for the past two years: high demand, elevated property prices, and low inventory. Despite these sustained market conditions, experts believe that the situation will be less intense than in 2021. Further, Zillow predicts the demand to increase, albeit at a lower level, which means the prices may go down a bit, but not enough to turn the situation into a buyer’s market.
Idaho Real Estate Trends and Statistics
Let’s look at Idaho’s housing market in more detail. The data is based on Q4 and Q3 2021 data.
Idaho Real Estate Sales
- During Q4 2021, Idaho sold 6,887 homes, which was 6.4% lower than Q3 2020.
- Pending sales went down by 14% from Q3, hinting at a dwindling market. However, the dip may also be due to seasonality.
- Property listings increased by 41% from 2020 but dropped significantly by 25.5% from Q3.
Idaho Real Estate Prices
- The average property price reached $593,868, recording a 19.6% increase YOY but slightly dropping by 1.5% compared to the third quarter.
- Northern Idaho counties saw an aggregate price increase of 29.1%, while their southern counterparts experienced a 20.1% increment.
- Although the property price appreciation looks impressive, continuing at this rate might be counterproductive because housing will become less affordable. This trend in price growth is expected to taper off in 2022 because of higher mortgage rates.
Idaho Days to Market
- On average, Northern Idaho homes sold within 82 days from listing, with all covered counties experiencing a drop from last year and an increase from Q3 2021.
- The southern part of Idaho registered an average of 42 days to market. Blaine and Payette counties saw a drop in days to market but jumped in other Southern Idaho counties covered in the report.
- Across Idaho, the average number of days to market dropped by nine days compared to last year but climbed by 11 days from Q3 2021 average.
Experts have reason to believe that the Idaho Housing Market Forecast 2022 will mirror the U.S. housing market. Roofstock’s top 20 states for real estate in 2022 include Idaho, which logged the following performance in 2021.
- Median home value: $446,550, up by 38.2% YOY
- Occupied housing: 87%
- Average rent: $1,429/month, an increase of 21.72% YOY
- Renter-occupied housing percentage: 28%
- Population growth: 1.87%
- Job growth: 4.32%
- Property tax average range (the largest share of households): $800 – $1,499
The downward trend on the Idaho days to market and the double-digit increase in median home value and average rent work together to provide a positive Idaho housing market forecast 2022.
A Quick Analysis of the Idaho Housing Market Forecast 2022
On February 21, 2022, Fox29 reported that people are leaving California, New York, and other cities with pricey housing markets to move somewhere more affordable. In the same report, the National Association of REALTORS (NAR) commented that surrounding states like Idaho had outperformed California in the housing market.
The in-migration to Idaho indicates that a lot is going for the Gem State. But the influx of people could only mean a better real estate market. The population growth rate means more people will need a residential place, which would be a big boost to Idaho’s housing market.
The job growth rate used in the Idaho housing market forecast 2022 would also mean a decline in the unemployment rate and growth in wages, which means more people can afford to save money to pay the downpayment for a property and a steady income to pay the monthly mortgage.
Key Drivers of the Idaho Housing Market
What attracts people from upscale areas to purchase a house in rural Idaho? We have identified five factors: job opportunities, population growth, quality of life, real estate investment options, and tourist attractions.
Idaho’s employment growth of 2.1% from 2020 may seem insignificant, but while the nation continues to struggle to recover millions of jobs lost to COVID-19, Idaho has fully recovered the jobs it lost.
In July 2021, the Idaho Department of Labor reported that the state’s unemployment rate soared to 11.6% in April 2020 but recovered fast, so that in April 2021, the state was experiencing a shortfall in labor. The available jobs increased by 14,500 from Idaho’s peak level before the pandemic. Idaho’s unemployment rate in November 2021 was 2.8%, lower than the national average rate of 3.7%.
An employee working in an average job in Idaho will earn an average salary of $58,479 per year,
The top ten biggest employers in Idaho are a mix of diverse industries. Zippia’s list of Idaho’s top ten employers are as follows:
- Panera Bread
- Micron Technology
- WinCo Foods
- St.Luke’s Health System
- J.R. Simplot
- Heatercraft Marine Products
- Lamb Weston
- Glanbia Foods
- Boise Cascade
Aside from these top employers, other big names in their respective industries found a home in Idaho. These include Idaho National Laboratory, Hewlett-Packard Company, Amalgamated Sugar Company, Oracle, and Amazon.
As a location’s population increases, so does the demand for residential property. Idaho has been leading the country’s population growth since 2006. In 2021, the state’s population increased by 2.9%, with 53,151 new residents. Ninety-two percent (92%) of these moved in from other states. The migration to Idaho may be attributed to the remote work setup, but affordability, the small-town vibe, and the spectacular scenery are other reasons migrants choose Idaho.
If you want to invest in real estate in Idaho, Boise, Meridian, and Nampa are good choices because of their relatively dense population.
Quality of Life
U.S.News and World Report ranked Idaho as the 5th best state to live in the U.S. -a big jump from its #16 spot in 2019. Each state was ranked in ten categories: Crime & Corrections, Economy, Education, Fiscal Stability, Health Care, Infrastructure, Natural Environment, and Opportunity.
Idaho ranked 3rd in Economy, which accounted for each state’s business environment, employment, and growth. Idaho was placed high on all three, topping the growth attribute. It was ranked 4th in Fiscal Stability and 10th in Crime & Corrections and Infrastructure.
Although it did not place in the top 10 in all other categories, it did not perform poorly as Idaho’s lowest ranking was #29 for Education.
Real Estate Investment Options
Idaho has several tourist-friendly places to visit, and with more people discovering the state’s beauty, the place has become rife with real estate investment options, notably in short-term rentals. Let’s look at Idaho’s real estate profile based on Mashvisor’s latest data.
- Number of Listings for Sale: 1511
- Median Property Price: $1,001,171
- Average Price per Square Foot: $474
- Number of Traditional Rental Listings: 491
- Monthly Traditional Rental Income: $1,679
- Traditional Rental Cash on Cash return 1.35%
- Price to Rent Ratio: 50%
- Number of Airbnb Listings: 4875
- Monthly Airbnb Rental Income: $3,096
- Airbnb Cash on Cash Return: 2.01%
- Airbnb Daily Rate: $219
- Airbnb Occupancy Rate: 54.46%
- Days on Market: 100
- Walk Score: 41
With the volume of tourists coming to the place yearly, the monthly Airbnb rental income, a good Airbnb occupancy rate, and a positive Airbnb Cash on Cash Return, first-time investors in Idaho would do well to adopt an Airbnb rental as a real estate investment strategy for their initial project.
Thousands of tourists visit Idaho every year. Whether going solo or with a group, Idaho offers several activities, ranging from laidback to heart-stopping adventures.
The cultured crowd may engage in arts and history by visiting ghost and mining towns, museums, and galleries or learning about Native American culture. They may check out the Museum of Idaho.
The thrillseekers have a wide range of options, including action sports, winter sports, and water sports. Blue Lake RV Resort and River Adventures are two of the best places for these activities.
Those who love the outdoors but are not too adventurous can go biking, camping, or hiking. Tourists who simply want to enjoy may have their fill of leisure activities that include sleigh rides, fishing and wildlife viewing, visits to amusement parks, road trips, or just lazing on the beach.
But regardless of what one’s idea of fun is, tourists will enjoy the activities related to food and drink.
5 Best Cities in Idaho for Real Estate Investments 2022
As a part of Idaho Housing Market Forecast 2022, we compiled a list of the state’s best cities for your real estate investment. The list is based on the city’s number of listings for sale, median property price, and days to market reflected on Mashvisor’s latest data. Here are the five best cities, in alphabetical order.
1. Boise, Idaho
Boise is Idaho’s capital city and a haven for people who relish communing with nature and getting a kick out of mountain and water adventures. Its urban downtown abounds with dining places serving locally sourced cuisine and opportunities to unwind, e.g., a night of opera. The city is considered a good place to raise a family because of its low crime rate. In a U.S. News study of 150 metro cities, Boise was ranked the 11th best place to live and the 7th safest place to live in America. As of 2019, its population is about 226,000 and is estimated to reach 230,000 in 2022. Realtor.com predicts Boise to experience a 12.9% sales growth year on year (YOY) and a price growth of 7.9% YOY.
- Listings for Sale: 126
- Median Price: $784,283
- Average Price per Square Foot: $369
- Average Days on Market: 52
- Walk Score: 31
2. Eagle, Idaho
Eagle is among the fastest-growing cities in the Treasure Valley. Despite the pretty, modern houses that adorn its landscape, the city has maintained its rustic charm and small-town feel. It is a quiet place with low crime rates, making it friendly for families of all shapes and sizes – whether you are starting a family, parenting, launching adult children, or living as empty nesters. Eagle’s population is expected to grow to over 34,000 in 2022.
- Listings for Sale: 48
- Median Price: $1,134,979
- Average Price per Square Foot: $374
- Average Days on Market: 67
- Walk Score: 84
3. Hayden, Idaho
Hayden is a small-town community in Northern Idaho with a projected population of more than 16,000 in 2022. This developing community attracts people with among the best outdoor recreation in Idaho mixed in with modern amenities in metro cities. It has a low unemployment rate, recorded at 2.5%.
- Listings for Sale: 66
- Median Price: $826,803
- Average Price per Square Foot: $381
- Average Days on Market: 66
- Walk Score: 483
4. Meridian, Idaho
Meridian is one of the best places to live in Idaho. In 2019, Money.com ranked this as the ninth-best place to live in America. The study cited the place for its employment opportunities, family-friendly environment, and quality of public education. It has a projected population of over 137,000, with about 76% of its residents owning their homes.
- Listings for Sale: 78
- Median Price: $843,869
- Average Price per Square Foot: $323
- Average Days on Market: 47
- Walk Score: 78
5. Nampa, Idaho
Nampa is the other half of Idaho’s largest Metropolitan area, Boise being the other half. Based on the 2020 Census, the city has a population of more than 100,000, estimated to reach more than 108,000 in 2022. It boasts affordability with its low cost of living and business costs, and quality of life that allows you to live in a large city with a small-town feel.
- Listings for Sale: 60
- Median Price: $562,227
- Average Price per Square Foot: $286
- Average Days on Market: 37
- Walk Score: 32
The Verdict: Invest in Idaho
Based on The Idaho housing market forecast 2022, there will be numerous opportunities this year to thrive in real estate, regardless of the real estate investment strategy you intend to adopt. Savvy investors can look at an Idaho property to add to their real estate portfolio. It wouldn’t hurt either for a newbie investor to consider a property in Idaho for their first real estate investment.
This year may not be a banner year for real estate as 2021 was, but it remains a good year for the U.S. housing market. The demand for housing and the property prices that soared last year will remain high, but they will see a decline in 2022.
Real estate experts have zoomed in on the best places for real estate investment; Idaho is one of them. The forecasts, along with the analysis of its market’s key drivers, point to a booming market.
However, no matter how bright the prospect is for Idaho, it does not mean that any neighborhood or property you find there will be good enough for your investment goals. Several factors must be considered, and how these factors come into play for a location or a property will determine the return of investment you can derive from it.
To complete the Idaho housing market forecast 2022, we have provided you with a list of the five best cities in Idaho to invest in. If you are ready to invest in the Idaho real estate market, your next step is to determine the best neighborhood and select your investment property.
Mashvisor can assist you with that. Our massive database and real estate investment tools can help you find the right investment property that will achieve your investment goals.
On the search bar, type in the location that interests you as an investment location. If you are eyeing a place not listed in our Idaho housing market forecast 2022, go ahead and do so. The list is not cast in stone.
The search will show you the listed properties in your specified location. Click on your preferred property to display a detailed investment property analysis showing its median home price, cap rate, return on investment, and other relevant metrics.
Use Mashvisor tools to help you do a comprehensive market analysis and acquire market insights on comparable properties. Click here to begin your search for an investment location and property.