Top 5 Idaho Cities To Invest In Real Estate

Fueled by relentless in-migration and job creation, Idaho outpaced nearly every other state in population growth over the past decade. From 2010 to 2020, Idaho‘s population swelled from 1.57 million to 1.83 million residents – a 16% jump. This influx of new residents has powered Idaho‘s red-hot housing market to new heights.

The median sales price of single-family homes in Idaho rocketed up nearly 40% over the past two years alone, reaching $492,000 in January 2022 before moderating slightly to $457,000 in October. Home values are increasing over 10 times faster than the national average, according to the Idaho Regional Multiple Listing Service (MLS).

The soaring popularity behind the numbers

What‘s driving this unprecedented demand? Idaho offers an enticing blend of natural beauty, four-season recreation, vibrant small towns, and most importantly for many new residents – vastly more affordable housing than larger West Coast cities. Remote work trends stemming from the pandemic also unleashed a wave of buyers no longer tethered to living near a physical office.

When Zillow surveyed people who moved to Boise in 2021, 64% cited lower home prices as their primary motivation. And they have a point – Boise‘s median home value of $428,000 is just over half the $816,804 median in San Jose, CA.

This influx of former Californians and Washingtonians migrating east has ignited a fiercely competitive housing market. Boise home values appreciated 33% in 2021 alone, while the number of available homes plunged from over 4,600 listings in August 2020 down to just 874 by February 2022 according to Boise Regional Realtors.

Rising rents tell the same supply-demand imbalance story in Boise, where the average apartment now costs $1,476 per month – an 18% jump since 2019 that outpaces the national average.

So where are the most promising markets to capitalize on Idaho‘s booming popularity? Let‘s analyze the data driving growth in the state‘s top investment cities.

Boise – The Trendsetting Market Leader

As the epicenter of Idaho‘s population and job growth, Boise sits at the top of the heap for savvy real estate investors. Its average home price acceleration has even exceeded other blazing Western markets like Phoenix and Las Vegas to rank #2 nationally over the past two years per Redfin.

Boise‘s median household income also rose over 11% to $60,000 since 2019 – providing plenty of buying power even as prices leap upwards.

Supply struggles to keep pace as builders race to add much-needed inventory after years of under-construction. Boise‘s total housing stock only increased 11% despite population growing 20% over the past decade.

Boise At-a-Glance:

Population (2022): 752,600
Population Growth 2010-2022: +20%
Median Home Price: $523,760
1-Year Home Appreciation: +26.8%
5-Year Median Rent Growth: +72%
Average Apartment Rent (2022): $1,476

Where are Boise home values heading?

Real estate analysts forecast Boise to remain a sellers‘ market for years to come as demand continues rising faster than the supply of new construction can catch up.

Zillow projects Boise home values to increase 9.9% over the next 12 months. Assuming this pace slows but continues rising steadily in the 5-10% range annually, Zillow‘s model forecasts Boise‘s current $523,760 median home price leaping 60% to over $800,000 by 2027.

Redfin chief economist Daryl Fairweather is even more bullish, recently telling CNBC she expects "Boise home prices will end up catching up with places like San Francisco” citing no signs of demand slowing anytime soon.

Rental market mirrors explosive growth

Boise rents tell the same supply crunch story, surging 18% since 2019 to an average $1,476 for all apartment types – vastly outpacing nationwide rent inflation.

Occupancy also remains extraordinarily tight for a mid-sized metro of Boise’s size at over 97% as of Q2 2022 according to Yardi Matrix data. Combined with its #4 ranking among mid-sized metros for fastest rising rents, these indicators signal landlords wield prime pricing power over the foreseeable future.

Idaho Falls – An Affordable Northern Star

While Boise captures headlines as Idaho‘s premier growth engine, savvy investors should also look north to dynamic Idaho Falls. Located on the Snake River surrounded by scenic mountains and national forests, Idaho Falls provides a high quality of life and affordable cost of living.

It‘s also becoming a hub for tech jobs and data centers. Top employers like Battelle Energy Alliance and the Idaho National Laboratory have spurred new construction and commercial expansion. In 2021, the Wall Street Journal even dubbed Idaho Falls America‘s rising tech hotspot thanks to an influx of software engineers, programmers and data scientists.

Idaho Falls unemployment rate of 2.1% demonstrates a vibrant job market for new residents, beating the national rate by over 40%. Plus home values remain about 25% cheaper than Boise at $396,604. For investors seeking cash flow, average asking rents for a 2-bed apartment are nearly $400/month less than Boise at $1,078.

Idaho Falls At-a-Glance:

Population (2022): 83,557
Population Growth 2010-2022: +14.3%%
Median Home Price: $396,604
Rental Vacancy Rate: 1.8%
Average 2-BR Apartment Rent: $1,078

Idaho Falls offers savvy investors relatively low buy-in costs combined with blossoming economic growth drivers. Its natural beauty and recreational abundance provide a compelling lifestyle draw for continued migration. Taken together, these conditions set the stage for sustained mid-single digit annual home price and rent appreciation.

Eagle – Upscale Living Fueling Frenzied Demand

Due west of Boise sits Eagle, an upscale suburb situated between the Boise Foothills with scenic vistas and Treasure Valley‘s bustling employment centers. New residents flock here for Eagle‘s top-tier school districts, parks and family amenities combined with convenient highway access.

Over $1 billion worth of new residential developments broke ground over just the past three years. These massive projects like Hidden Springs (3,000 homes), S Arbor Vista Village (1,446 homes) and Avimor (1,150 homes upon completion) demonstrate why Eagle housing inventory expanded faster than any other Treasure Valley city since 2000 per BoiseDev.

Yet demand continues severely outpacing supply, forcing bidding wars as this charming suburb becomes increasingly unaffordable for middle-class families it aims to attract.

The numbers reveal why Eagle real estate is red-hot:

Median Home Price: $882,155, 33% 1-year growth
Monthly Rent for 2-Bed Apartment: $1,600+, up 37% since 2019
School District Ranking: Top 2% statewide
Unemployment: 2.3%, about half the national average

Investing in Eagle during its rapid growth phase can pay dividends through continued strong property appreciation and high rents from families drawn to its exceptional quality of life.

Twin Falls Emerges on Value-Focused Buyer Radar

Long known as Idaho‘s basecamp for outdoor recreation from fly fishing to canyon hiking, Twin Falls presents investors a different value equation.

Defined by stunning waterfalls slicing through 860-foot deep Snake River Canyon (twice as deep as the Grand Canyon!), Twin Falls delivers big natural beauty on a smaller city scale. Buoyed by recreation tourism and food manufacturing like the region‘s largest employer, dairy maker Glanbia Foods, Twin Falls enjoys economic stability combined with home prices 25-30% below Boise.

Since 2019, median home values soared 40% to $382,731 while apartment rents jumped 17% – demonstrating Twin Fall‘s popularity spike among buyers seeking cheaper alternatives to increasingly costly Boise.

Twin Fall‘s affordability advantage, spectacular scenery and wealth of outdoor activities position the city for continued migration from higher-priced regions. Savvy investors can capitalize on this burgeoning popularity through buying lower-priced properties poised to appreciate steadily as market tailwinds persist.

Meridian, ID – Boise‘s Fast-Growing Sidekick

Due north of Boise proper lies Meridian, a family-friendly boomtown billed as Idaho‘s next big tech center. As home to semiconductor manufacturers like Micron Technology plus burgeoning healthcare and software sectors, Meridian boasts the state‘s lowest unemployment rate at just 2.0%.

Over 75,000 residents currently call Meridian home – an astonishing 75% population surge since 2010. This remarkable growth stems from families and remote workers drawn to Meridian’s blend of highly rated schools, modern suburbs, parks/recreation and abundant retail/dining amenities.

Livability site NeighborhoodScout even named Meridian one of America‘s 10 best affordable suburbs for 2021 thanks to median incomes nearly 20% above national averages keeping pace with rising home values.

Let‘s examine key housing stats fueling this ultra-hot market:

Median Home Price: $562,182
1-Year Appreciation: +30%
5-Year Median Rent Growth: +57%
Average Days on Market: 6 days only!

With projections showing no slowdown yet for one of America‘s fastest growing mid-sized cities, investors should absolutely keep red-hot Meridian on their radar.

Rarely do markets offering first-class outdoor recreation, thriving economic drivers and vast affordability advantages converge like Idaho at this moment. Yet that perfect mix fuels soaring in-migration – and corresponding home price trajectories years into the future.

These prescient growth signals point investors to Idaho‘s top markets highlighted above as prime regions to capitalize on one of America‘s most remarkable boom cycles in recent memory.

Act now by connecting with a savvy local real estate advisor who can guide your investing strategy. Stay ahead of the herd by leveraging their on-the-ground expertise about market conditions and new developments.

Target turnkey properties in growing neighborhoods near employment and lifestyle amenities. Focus extra attention on vocational epicenters and residential markets facing housing deficits – where demand should keep valuations rising once you‘re ready to sell or rent.

Then buckle up and watch your portfolio flourish as the migration influx propels Idaho ever higher for years to come!