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Is Boise The Best Market For Real Estate Investment In 2019?

How is The Boise Real Estate Market 2019?

If you want to find investment opportunities, you need to find the sleeper opportunities. These are places where demand is growing but it isn’t so hot that you risk being burned by buying at the top of the market. And we found such a “sleeper” investment opportunity in Boise, Idaho. We’ll tell you a little about Boise. Then we’ll share 10 reasons to invest in the Boise real estate market.

Idaho has much more than potatoes. Boise is a full city, home to more than 200,000 people. Nor is that the entirety of the Boise housing market, since Boise has suburbs. The Boise-Nampa metropolitan area is home to over 700,000 people. This metro area includes Boise, Nampa and Meridian.

There are a number of other reasons to consider investing in the Boise real estate. Is Boise going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Boise housing market trends and find out the prospects of investing in Boise real estate in 2019.

Boise Investment Properties For Sale

If you are an investor, Boise real estate has a track record of being one of the best long term investments in the nation. Based on the last twelve months, short-term real estate investors have found good returns in Boise. Boise appreciation rates in the latest quarter were at 1.24%, which equates to an annual appreciation rate of 5.05%.

boise real estate market

Pic Credits: Pexels.com | Original Photo by Brett Sayles

Boise Real Estate Market News – Home Price Surges $50,000

As per the market report published on WeKnowBoise.com, over the last twelve months, the cost of the typical home in Boise rose by nearly $1,000 a week. Ada County home prices also reached a new record of $342,765, an increase of all most $38,000 or 12.42 percent. In contrast, Canyon County prices are up only $34,200 to $243,200.

The median sales price for single-family houses in Boise, ID from May 1st to the 31st is $335,000 based on 515 home sales. The average price per square foot for Boise is $192, an increase of 11.63 percent compared to the same time last year.

  • The median list price increased to $335,000 (up 16.93% from twelve months ago)
  • The median sold price increased to $335,000 (up 17.54% from twelve months ago)
  • Total home sales rose to 515 (down from 538 twelve months ago)
  • Median days on market declined to 6 days (up 1 day from twelve months ago)
  • Available homes for sale rose to a 1.17 month supply (up from 0.98 twelve months ago)
  • 30-year fixed-rate mortgage rates decreased to 4.07% (down from 4.59% twelve months ago)

Boise Real Estate Market Forecasts 2019 & 2020

According to Zillow, the median home value in Boise is $299,700. Boise home values have gone up 15.6% over the past year and their Boise real estate market prediction is that the prices will rise 8.5% by May, 2020. The median list price per square foot in Boise is $202, which is higher than the Boise City Metro average of $175. The median price of homes currently listed in Boise is $349,900. The median rent price in Boise is $1,450, which is lower than the Boise City Metro median of $1,495.

Here is the Boise real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 8.5% till May 2020.

Boise Real Estate Market Forecast

Graph Credits: Zillow.com

According to LittleBigHomes.com, the Boise real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Boise real estate market trend prediction is 83%. Accordingly, they estimate that the probability for rising home prices in Boise, ID is 83% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.

Boise Housing Market Forecast 2019 – 2021

The Boise housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Boise housing market trend prediction is 78%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Boise, Idaho is 78% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Boise, Idaho Real Estate Forecast.

Boise Real Estate Market Trends

Boise real estate market trends show a -1% week-over-week drop in average listing price and a 3% rise in median rent per month. Trulia has 1,066 resale and new homes in Boise lined up for you, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. Boise real estate market has become an extremely alluring place to live.

Boise Real Estate Market Trends

Graph Credits: Trulia.com

Positive market trends have supported Boise real estate investing too. Not just has Boise real estate market recovered its balance, it has started to flourish. With strong market basics set up, this development does not seem, by all accounts, to be backing off at any point in the near future.

A strong local economy and sustained employment are giving buyers confidence – just what the Boise real estate market needs. Single-family detached homes are the single most common housing type in Boise, accounting for 65.62% of the city’s housing units.

Data by Redfin shows that the Boise housing market is very competitive. Homes in Boise receive 2 offers on average and sell in around 8 days. The average sale price of a home in Boise was $330K last month, up 17.7% since last year. The average sale price per square foot in Boise is $187, up 11.3% since last year.

Homes typically receive 2 offers. Homes for sale in the Boise housing market sell for around list price and go pending in around 8 days. Hot homes for sale in Boise, ID can sell for about 1% above list price and go pending in around 3 days.

Boise has been one of the fastest growing cities in the nation and housing inventory has never been tighter, driving home prices up. Home sales have now peaked for the year, but Under Contract properties did outnumber homes for sale for much of the year as the housing shortage intensified.

This will continue into next year. According to Repomandan.com, Ada County housing markets have softened slightly with the usual seasonal slow-down in sales. Canyon County markets have remained stronger into the fall with Nampa & Middleton having the tightest supply readings again this month.

The long view of available homes for sale in Ada & Canyon counties really shows how extreme conditions are right now in the Boise Metro and SW Idaho housing markets. The trend has been toward fewer available listings each year as population grows and homes sell fast. On existing homes sold in October, average days on the market were just 23 in Ada and 21 in Canyon.

There are 1,021 homes for sale in Boise, ranging from $15K to $15M on Realtor.com. 162 of which were newly listed within the last week. Additionally, there are 191 Boise rental properties, with a range of $364 to $3.2K per month.  In May 2019 the housing market in Boise, ID was a seller’s market, which means there were roughly more buyers than there were active homes for sale.

Boise Housing Market Trends

Graph Credits: Realtor.com

The median list price of homes in Boise, ID was $375K in May 2019, trending up 15% year-over-year. The median listing price per square foot was $190. On average, homes in Boise, ID sell after 40 days on the market. The trend for median days on market in Boise, ID is flat since last month, and flat since last year.

Boise Housing Market Trend

Graph Credits: Realtor.com

Ada County Idaho Real Estate Trends 2019

As per the report published on Boirealtors.com, supply and demand dynamics continued to drive home prices up in Ada County in May 2019.  Due to the lack of inventory of homes for sale at the lower price points, the share of higher-priced home sales continued to rise. The median sales price of existing/resale homes in Ada County reached a new high of $329,000 in May 2019, up 14.7% from May 2018.

Because there are fewer homes available at the lower price points, the share of home sales above $300,000 continued to rise – at 61.3% of all existing homes sales in May 2019. As a result, as more existing homes sell at higher price points, it further drives up the median price for the segment, as well as the market overall.

Ada county idaho real estate trends

Snapshot Credits – Boirealtors.com

Boise, ID Single Family And Multi-Family Homes

Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

As per the real estate company called Neigborhoodscout.com, the median house price in Boise, ID is $286,331, which indicates that home prices in Boise are well above the national average for all cities and towns. Single family detached homes are the single most common housing type in Boise, accounting for 65.97% of the city’s housing units.

Other types of housing that are prevalent in Boise include large apartment complexes or high rise apartments ( 15.64%), duplexes, homes converted to apartments or other small apartment buildings ( 9.12%), and a few row houses and other attached homes ( 5.80%).

The most prevalent building size and type in Boise are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 60.49% owning and 39.51% renting.

In Ada County, home prices are expected to increase by 31% over the next three years. Expect 6,000 new single-family homes built over the next three years with 5,000 new rental units.

In Canyon County, home prices are expected to increase by 33% over the next three years. Expect 4,000 new single-family homes built over the next three years with 3,000 new rental units.

In Bonneville County, home prices are expected to increase by 29% over the next three years. Expect 2,000 new single-family homes built over the next three years with 1,500 new rental units.

Currently, there are 619 single family homes for sale in Boise, ID on Zillow. Additionally, there are 157 single family homes for rent in Boise, ID. Under potential listings, there are about 2 Foreclosed and 95 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Boise, ID Foreclosures And Bank Owned Homes 2019

At the height of the collapse, when the U.S. national foreclosure rate topped out at 4.5 percent, Boise never exceeded 4%. In recent years, it has stayed at least 2 percentage points below national averages for each of the past ten years. The percent of delinquent mortgages in Boise is 0.2%, which is lower than the national value of 1.1%, according to Zillow.com.

There are currently 50 properties in Boise, ID that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 461. In May 2019, the number of properties that received a foreclosure filing in Boise, ID was 50% lower than the previous month and 83% lower than the same time last year.

Foreclosures in Boise 50
Homes for Sale 461 (RealtyTrac)
Recently Sold 3,212
Median List Price $320,000 (4% ⇑ vs Apr 2018)

Home sales for April 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Boise, ID was $0. The median sales price of a foreclosure home in Boise was $0, or 0% higher than non-distressed home sales.

 

Boise Home Prices And Real Estate Appreciation 2019

Boise real estate appreciated 43.83% over the last ten years, which is an average annual home appreciation rate of 3.70%, putting Boise in the top 10% nationally for real estate appreciation.

Boise real estate appreciation rates are so strong in that despite a nationwide downturn in the housing market, Boise real estate has continued to appreciate in value faster than most communities.

In the last twelve months, Boise real estate appreciation rates continue to be some of the highest in the nation, at 11.56%, which is higher than appreciation rates in 94.94% of the cities and towns in the nation.

The above statistics on real estate appreciation in Boise, ID were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Idaho, their data shows that Boise’s latest annual appreciation rate is higher than 70% of the other cities and towns in Idaho.

Best Places To Buy Real Estate In Boise, Idaho

If you are looking to buy real estate in Boise, you should know the best places to invest in. There are 138 schools in Boise, ID. There are 60 elementary schools, 29 middle schools, 19 high schools and 30 private & charter schools. There are 37 neighborhoods in Boise.

Some of the best neighborhoods in Boise, Idaho are Southwest Ada County Alliance, Southeast Boise and West Valley. Highlands has a median listing price of $738K, making it the most expensive neighborhood. Central Bench is the most affordable neighborhood, with a median listing price of $254.9K.

Here are the 10 best neighborhoods in Boise to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).

1

 City Center

2

 N 13Th St / Brumback St

3

 Boise Hills Village

4

 W State St / Plantation Dr

5

 N 26th St / Sunset Ave

6

 Vernon

7

 Kootenai St / S Federal Way

8

 Hill Rd / N 36th St

9

 Greenwood Cir / S Montevista Ave

10

 Morris Hill

Best Neighborhoods in Boise, ID: By Realtor.com

Boise NeighborhoodMedian Listing PriceMedian Price/Sq FtRentals For Sale Latest Trend
Southwest Ada County Alliance$299.9K$15838 rentals, with a range of $975 to $2.2K/moSeller's Market
Southeast Boise$325K$18522 rentals, with a range of $459 to $2.7/moSeller's Market
West Valley$267.7K$1518 rentals, with a range of $899 to $1.4K/moSeller's Market
North End$520K$2437 rentals, with a range of $895 to $2.4K/moSeller's Market
Vista$245K$1715 rentals, with a range of $650 to $1.4K/moSeller's Market
West Bench$274.9K$1435 rentals, with a range of $825 to $1.4K/moSeller's Market
Harris Ranch$482K$2033 rentals, with a range of $1.2K to $2.2K/moSeller's Market
East End$499K$2178 rentals, with a range of $950 to $2.5K/moSeller's Market

Should You Invest In The Boise Real Estate In 2019?

Is it worth buying a house in Boise, ID? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Boise is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Boise housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Boise, but we have collected ten evidence based positive things for those who are keen to invest in the Boise real estate in 2019.

The Boise area is well-regarded, but that’s not reason enough to invest in an area. Boise real estate is also some of the most expensive in Idaho, although Boise home values don’t compare to the most expensive real estate in the U.S.

We’ll focus on practical reasons you’d want to buy investment properties in Boise and give you the hard facts to justify those recommendations. Let’s take a look at the number of positive things going on in the Boise real estate market which can help investors who are keen to buy an investment property in this city.

1. The Student Market

The Boise metro area is the largest population center in Idaho and home to the state capital, so it is the largest student market in the state. In fact, Boise State University is located here. So are satellite campuses of the University of Idaho ad Idaho State University. Boise Bible College is also located in Boise.

This provides significant opportunity for those who want to invest in the Boise real estate market and cater to college students.

2. The Lure of Jobs

One factor propelling the Boise real estate market is the availability of jobs. In Boise, population and job growth triple the national average. Boise is home to far more than lumber and food processors, though it is home to the headquarters of Idaho Pacific Lumber Company.

The area’s largest private employer is Micron Technology, though Hewlett Packard and Simplot employ thousands here. There are a number of manufacturing facilities here providing more stable and better paying work than you could find in the seasonal tourism and irregular agribusiness sector.

The university and state government are major employers. Boise has low unemployment overall, currently hovering around 3%. That is two points below the national average.

3. The Surprisingly Strong Rental Market

The average wage in Boise is a dollar an hour higher than the state average, so moving there gives you a pay hike. However, Boise has generally low wages compared to other metro areas. The average pay rate is about $40,000 per person.

While housing is cheaper than in states like California and Oregon, pay is lower, too. This means many people must rent. A healthy vacancy rate is around 5%.

In Boise, it is around 2%, and in the cheapest units, 1%.This has led to a flood of new apartment construction in the Boise housing market, but higher than average construction costs in Idaho slow down relative to demand.

It certainly didn’t help local renters when there was no apartment construction at all in 2008 while new construction lagged in the last years of the Great Recession that really only ended in 2016. That is why rental rates went up 7% between 2017 and 2018.

4. Highly Regarded Schools

Boise has the top ranked school district in the state. And you get these high quality schools along with cheap housing, high quality of life and short commutes. If you’re one of the many people fleeing the high crime, unemployment and regulatory burden of California, that’s an ideal combination.

5. An Excellent Overall Quality of Life

Any town can say they have a great atmosphere or quality of life, but Boise makes national publication’s lists of best places to live – repeatedly. In 2008, they were listed second in Forbes on the best places for business and careers. In 2014, Time Magazine listed Boise as the best city “getting it right”.

In 2018, Boise ranked 46th in Money magazine’s best places to live list. Boise’s ranking was unusual in that it was a large city and state capital, while most cities that made this list were the suburbs of big cities or college towns.

US News and World Report listed Boise as the 23rd best place to live and 66th to retire in the 125 biggest metro areas United States.

6. The Outdoor Recreational Opportunities

This is such a hallmark of Boise that it can’t be considered just one more aspect of the quality of life. Boise’s location puts you in easy reach of the surrounding wilderness, while the local climate means people bike and raft in the summer and ski in the winter.

Rock climbing, kayaking, hunting, golfing, horseback riding and myriad other activities attract people as tourists (providing significant local employment) and keep residents from considering every leaving.

7. Demographic Momentum

The Boise housing market is driven more by internal migration than international migration. The high price of real estate in Utah has driven a steady stream of Mormons into the Boise real estate market. Their average family consists of three children, 50% larger than the U.S. average.

The state is attracting refugee families from the West Coast’s high taxes and housing costs, as well, as they seek a better place to start and raise families.

That’s why many in Boise openly mock Californians, though it won’t keep them from buying in the Boise housing market. This means that the Boise market will see continual growth from demographic momentum for years to come.

8. Low Taxes

Boise has very low taxes, especially compared to the West Coast. The progressive income tax tops out at 7.4%, while the sales tax is about 6%. You pay less for utilities and car insurance, too. For investors, the average 1% property tax rate is a bargain, especially when you factor in the low cost of housing.

The average property tax bill is around $2300. The national average is 1.2% of the home’s assessed value and an annual property tax bill of $3000, though in places like New Jersey and New York, it could surpass $10,000.

9. Affordable Real Estate for Buyers

One of the attractions of the Boise real estate market is the sheer number of affordable large single family homes. You could find a four bedroom home for around $200,000, roughly $100,000 below the national average, several years ago. With increasing demand, homes are still a deal at around $250,000.

10. Decent Return on Investment

The median rent in Ada County where Boise is located is around $800; you get a two bedroom apartment for that. You could of course charge much more for a large single family home, while affordable properties and low taxes give you a decent ROI on the investment.

Slow and steady demand also ensures that your investment will grow in value; the Boise housing market has seen appreciation of around 10% year over year.

We already mentioned how the high demand for rentals relative to supply is keeping rental rates elevated, and the slow rate of construction means that rental rates and property rates aren’t going to fall in the foreseeable future.

Boise Real Estate Investment

Maybe you have done a bit of real estate investing in Boise, ID but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Boise real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Boise real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Boise, Idaho. The Boise real estate market is a sleeper market, seeing slow but steady demand that the local housing market can’t quite meet. The best opportunity is in rentals catering to those who can’t pay a lot in rent but want to be close to major employers.

What Makes Boise Real Estate Investing Attractive To Investors?

  • Population and Job Growth Triple National Average
  • Strong population growth.
  • Job growth 2-3 times national average.
  • Low cost of doing business.
  • Low unemployment rate at 3.5%.
  • Forbes ranked #6 for most job growth.
  • 1-year appreciation forecast of 3.2%.

Boise Investment Properties For Sale ⇐ Click Here

Buying an investment property is different from buying an owner-occupied home. Our Boise investment properties are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business. These are “Turnkey Cash Flow Investment Properties” located in some of the best neighborhoods of Boise, Idaho.

According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.

We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

The aim of this article was to educate investors who are keen to invest in Boise real estate in 2019. However, we always recommend to do your own research and take help of a local real estate investment counselor.

Other Best Places To Invest in Real Estate in 2019

Another good market is the Philadelphia real estate market, which offers an ideal mix of affordable properties you can snap up and a large population of renters who aren’t going to buy homes any time soon. You won’t face the same hostility as a landlord as you might in New Jersey or New York, whether renting to long-term tenants or tourists.

While other major cities have waged war on AirBnB and other short term rental sites, Philadelphia realizes this is a good way to cater to tourists and help local home owners earn income. This is why Philadelphia stands out as friendly to short-term rental sites like AirBnB.

One of the few conditions to meet is payment of the 8.5% tax on all profits and you don’t make the property not look like a home. Note that these rules apply to primary residences. As a non-resident landlord, you can rent out homes via AirBnB, too, but you have to apply for a visitor accommodations variance. Multi-family housing can also be rented out via AirBnB in Philadelphia if you fill out the right paperwork.

Similarly, the San Jose real estate market 2019 forecast is that it is going to be a hot investment destination for new real estate investors. Big Tech makes San Jose one of the hottest real estate markets in the country. While the intense pressure is driving some companies and people out, the strong financial numbers continue to make the San Jose housing market a good place to invest.

The unique redevelopment opportunities should not be overlooked. In January, 2018, Redfin ranked the ten hottest neighborhoods in the United States. Nine of the ten were in San Jose. When single home prices fall from 1.2 million to 1 million, homes now sit on the market for several days instead of being snapped up immediately.

The median price for a new home or condo was $750,000 in 2018, down from a record of nearly $800,000 a few months prior. If you want to invest in the San Jose housing market, you should do it now while things are – relatively speaking – affordable.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.


*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Affordable large homes
https://www.deseretnews.com/top/7/3/Boise-Idaho-The-10-best-places-to-raise-an-LDS-family-outside-of-Utah.html

Quality of Life
http://time.com/money/collection/2018-best-places-to-live/5361498/boise-idaho/
https://realestate.usnews.com/places/idaho/boise                              https://www.movoto.com/blog/opinions/moving-to-boise

Schools
https://www.niche.com/k12/d/boise-independent-school-district-id/
Low taxes
https://realestate.usnews.com/places/idaho/boise
https://smartasset.com/taxes/idaho-property-tax-calculator

ROI
http://www.boisestatepublicradio.org/post/things-draw-people-boise-and-what-pushes-them-away#stream/0
https://www.bestplaces.net/city/idaho/boise

Outdoor recreation                                                                                        https://www.estately.com/blog/2013/10/32-things-to-consider-before-moving-to-boise

Strong rental market
https://www.boiseweekly.com/boise/for-rent-boises-historic-low-vacancy-rate-triggers-a-flood-of-new-apartments/Content?oid=5862461
https://www.ktvb.com/article/news/local/recent-report-shows-rent-prices-unaffordable-across-idaho/277-564266735
https://www.idahostatesman.com/news/article214593445.html

Market Trends, Forecast and Reports                                                                                  https://www.zillow.com/boise-id/home-values                                  https://www.realtytrac.com/statsandtrends/id/ada-county/boise                    https://www.trulia.com/real_estate/Boise-Idaho/market-trends https://www.repomandan.com/Pages/MarketMonitor.aspx                                https://www.fortunebuilders.com/boise-real-estate-and-market-trends                        https://www.movoto.com/boise-id/market-trends                              https://www.realtor.com/local/Boise_ID/housing-market                https://www.neighborhoodscout.com/id/boise/real-estate                          https://www.weknowboise.com/blog/boise-home-prices-surge-50000.html          https://www.forbes.com/sites/ingowinzer/2016/09/20/is-it-time-to-invest-in-the-mountain-states/#200f3b856730


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