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How Is The Idaho Falls Housing Market For Real Estate Investment?

Hottest Idaho Falls Real Estate Market Insight

If you’re keen to invest in your future in the Idaho Falls real estate and buy before prices become out of reach, you must peruse till the end. The Idaho Falls real estate market is seeing a crunch because of the increasing demand for housing. Idaho Falls, ID may be the last big town you pass through on your way to Grand Teton National Park. The town is home to around sixty thousand people, a quarter of those living in Boise, the capital of Idaho. State capitals tend to be a good place to invest in real estate, since there are large student markets, stable government employment and other benefits.

However, we’re going to recommend investing in Idaho Falls instead. The rise in real estate prices is a simple result of supply and demand. The housing in Idaho Falls has continued to increase, but then that demand is still outstripping the supply a little bit. Let’s take a close look at the Idaho Falls real estate market predictions 2019 and find out why to invest in this tight market.

Idaho Falls Real Estate Market

Original Photo via Pixabay

Idaho Falls Real Estate Market Forecast 2019, 2020 & 2021

The Idaho Falls housing market 2019 has a number of positive indicators in place. It’s no secret that the economy in Idaho Falls, and eastern Idaho in general, has been on the upswing in recent years, with population growth and employment reaching high levels. Idaho Falls real estate market will continue on an upward trajectory. The growth has been continually steady and upward and even with challenges like housing, Idaho is such a beautiful beautiful place that people want to come to and live in.

The median home value in Idaho Falls is $199,100 on Zillow.com. Idaho Falls home values have gone up 14.4% over the past year and Idaho Falls real estate market prediction is that they will rise 1.9% within the next year. The median list price per square foot in Idaho Falls is $100, which is lower than the Idaho Falls Metro average of $103. The median price of homes currently listed in Idaho Falls is $255,000. The median rent price in Idaho Falls is $1,195, which is higher than the Idaho Falls Metro median of $1,099.

Idaho Falls Real Estate Market Forecast

Graph Credits: Zillow.com

LittleBigHomes.com publishes forecasts for the trend in home prices in 380 Metropolitan Statistical Areas. The forecast for the trend in the Idaho Falls housing market for the 12 months ending with the 3rd Quarter of 2019 is up (positive). The Accuracy of the Trend Projection for Idaho Falls is 81%. Accordingly, they estimate that the probability for rising house prices in Idaho Falls is 81% 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. Check this page each quarter for updates to the Idaho Falls Real Estate Market Forecast.

Idaho Falls Housing Market Forecast 2019 – 2021

The forecast for the trend in the Idaho Falls housing market for the 3 years ending with the 3rd Quarter of 2021 is up. The Accuracy of the Trend Prediction for Idaho Falls is 80%. Accordingly, LittleBigHomes.com estimates that the probability for rising house prices in Idaho Falls is 80% 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 Idaho Falls Real Estate Market Forecast.

You can check this page of LittleBigHomes each quarter for updates to the Las Vegas Real Estate Market Forecast.

Idaho Falls Real Estate Market Trends

The housing market in Idaho Falls is tight and it’s going to continue shrinking unless builders can provide more inventory. Idaho real estate market trends in Idaho Falls show a -1% week-over-week drop in average listing price and a 0% rise in median rent per month. Trulia has 232 resale and new homes for sale in Idaho Falls, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

Idaho Falls Real Estate Market Trends

Graph Credits: Trulia.com

Idaho Falls Housing Market Summary

  • Median Sales Price: $191,544 (On Trulia)
  • Homes For Sale: 232 (Trulia)
  • Median Rent Per Month: $1,100
  • Median Household Income: $49,596
  • Home Owners: 80%
  • Single Residents: 25%
  • Median Age: 35
  • College Educated: 32%
  • Transportation: Mostly Car dependent, Public Transport Available

There are 363 homes for sale, ranging from $27.9K to $5M on Realtor.com. Idaho Falls have affordable multi-families, and affordable 1 bedroom listings. 30 of which were newly listed within the last week. Additionally, there are 43 rentals, with a range of $277 to $1.8K per month. The median list price of homes in Idaho Falls, ID was $209.3K in December 2018, trending up 15% year-over-year. The median listing price per square foot was $91.

Idaho Falls Housing Market Trends

Graph Credits: Realtor.com®

There are 79 schools in Idaho Falls, ID. There are 38 elementary schools, 16 middle schools, 16 high schools and 9 private & charter schools.

Idaho Falls, ID Single Family Homes

As per the data from the real estate company called Neigborhoodscout.com, Idaho Falls has a median house value of $174,801 and Idaho Falls real estate and house prices are near the national average for all cities and towns. Single-family detached homes are the single most common housing type in Idaho Falls, accounting for 68.29% of the city’s housing units. Other types of housing that are prevalent in Idaho Falls include duplexes, homes converted to apartments or other small apartment buildings ( 12.45%), large apartment complexes or high rise apartments ( 11.60%), and a few row houses and other attached homes ( 5.26%).

The most prevalent building size and type in Idaho Falls are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 63.90% owning and 36.10% renting.

Idaho Falls Foreclosures And Bank Owned Homes

The percent of delinquent mortgages in Idaho Falls is 0.6%, which is lower than the national value of 1.1%. On RealtyTrac, there are currently 9 properties in Idaho Falls, ID that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 228. In January, the number of properties that received a foreclosure filing in Idaho Falls, ID was 20% lower than the previous month and 100% higher than the same time last year. Home sales for December 2018 were up 0% compared with the previous month, and up 0% compared with a year ago. The median sales price of a non-distressed home in Idaho Falls real estate market was $0. The median sales price of a foreclosure home in Idaho Falls was $0, or 0% higher than non-distressed home sales.

  • Foreclosures in Idaho Falls = 9
  • Homes for Sale = 228 (RealtyTrac)
  • Median List Price = $215,000 (3% increase vs Jan 1, 2019)

Idaho Falls Home Prices And Appreciation Rates

The cumulative appreciation rate for homes in Idaho Falls over the ten years has been 16.08%, which ranks in the top 50% nationwide. This equates to an annual average Idaho Falls house appreciation rate of 1.50%. According to NeighborhoodScout’s data, appreciation rates are so strong in Idaho Falls that despite a nationwide downturn in the housing market, Idaho Falls real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Idaho Falls appreciation rates continue to be some of the highest in America, at 9.06%, which is higher than appreciation rates in 88.78% of the cities and towns in the nation.

Based on the last twelve months, short-term real estate investors have found good fortune in Idaho Falls. Idaho Falls appreciation rates in the latest quarter were at 4.29%, which equates to an annual appreciation rate of 18.28%. Importantly, this makes Idaho Falls one of the highest appreciating communities in the nation for the latest quarter, and may signal the city’s near-future real estate investment strength. Relative to Idaho, their data shows that Idaho Falls’s latest annual appreciation rate is lower than 80% of the other cities and towns in Idaho.

10 Highest Appreciating Idaho Falls Neighborhoods Since 2000: By Neigborhoodscout.com

Nearby to Idaho Falls are cities like Annis which has a median listing price of $247,000, making it the most expensive city. Beachs Corner is the most affordable city near Idaho Falls, with a median listing price of $214,000. These are the best neighborhoods in Idaho Falls for real estate investment because they have the highest appreciation rates.

best neighborhoods in Idaho Falls for real estate investment

Courtesy: Neighborhoodscout.com

10 Reasons To Invest In Idaho Falls Rental Houses In 2019 & 2020

Is a Idaho Falls investment property still a decent real estate investment? If you are looking to buy Idaho Falls investment properties, then you must read this. These things make Idaho Falls real estate market stand out when it comes to choosing a place to invest in 2019 and beyond. Idaho Falls real estate market provides an excellent opportunity for investors and home buyers at the moment.

We have already discussed the Idaho Falls housing market forecast for answers on why to put resources into this healthy market in 2019.

Here are a few evidence-based reasons why to invest in the Idaho Falls rental houses for cash flow. 

1. It Is an Affordable Regional Hub

Idaho Falls is the second largest population center in Idaho. While there are sixty thousand in the city itself, over a hundred thousand live in the metropolitan area. More importantly, it is the healthcare, cultural and commercial hub for eastern Idaho, southern Montana and western Wyoming. People come here to fly out of the regional airport, visit the doctor, watch a game or attend college.

That gives the Idaho Falls housing market a strong, diverse economy that will remain strong for the foreseeable future. That is aside from the agricultural services that have always been part of its economy but became secondary due to the development of the INL.

2. It Is a Not-So-Secret High Tech Hub

Any real estate market is bolstered by the presence of a high-tech hub that creates many high-paying jobs. And the Idaho Falls real estate market gets a boost from the Idaho National Laboratory. It employs more than eight thousand people. This is far more jobs than one would see from a nuclear power plant. In fact, the Advanced Test Reactor and research positions create demand for Idaho Falls rental houses as people come work at the facility for a few months or years to further their career.

3. Demographic Momentum Is Positive

A younger than average population either means there are many college students in the area or many people who came for work and choose to settle down and start families here. The Idaho Falls housing market sees a mix of both these populations. The median age in the city is 32 years of age, eight years less than the national average. Just under a third of residents are children, while a tenth is college-aged.

As long as the employers who attracted and retained this population remain, expect to see population growth as children born here grow up and start their own families. That will create long term demand for the Idaho Falls real estate market.

4. College Students in the Area Must Live Here

In some areas, we’d say that you’d want to invest here because of the sizable student market. After all, students are a permanent, constantly churning source of renters living in the Idaho Falls real estate market. Idaho Falls is simply the only option for students in the area who want to go to college. The College of Eastern Idaho is the area’s only community college.

The University Place campus lets students dual-enroll in Idaho State University and the University of Idaho; students attending the school can complete core classes before transferring to either main campus or earn one of the few available degrees that can be completed there. Stevens-Hager College and University of Phoenix set up resource centers to help those in the area attending college online.

5. Real Estate Is Affordable

The median home price hovers just over $220,000. This is close to the national average, though it is a bargain by West Coast standards. The fact that the city keeps showing up on best places to live lists and is far cheaper to live in than California or Oregon explains why tax refugees are fleeing from those states to places like Idaho Falls. In fact, their demand for properties in Boise caused the average home price there to hit $300,000, a nearly 20% jump over the prior year’s price tag.

That is driving locals and West Coast expats to cheaper markets. That creates demand for Idaho Falls rental houses, though some of those renters will end up buying properties in the Idaho Falls real estate market.

6. Growing Demand Is Driving Up Rents

The influx of people from rural Idaho, fleeing Boise or the West Coast is all driving up rental rates in Idaho Falls, Idaho. Rents for small one bedroom apartments grew nearly 20% year over year, while two bedroom rents increased roughly 6%. Needless to say, the rents for larger Idaho Falls rental houses are rising faster than the rate of inflation, too.

7. And Supply Is Tight

When there is growing demand for housing, one solution is building more housing. However, builders in the Idaho Falls real estate market are not keeping up with demand. A city study found that while new housing is planned, the projected supply is a thousand units short of expected demand. Builders cited constraints like rising material costs, a lack of qualified skilled labor and customers who can’t necessarily afford more expensive new homes. This contributed to the 2%-4% vacancy rates throughout the area.

8. The Return on Investment Is Good

Rents for Idaho Falls rental houses hit $1500 a month in Ada County and $1100 a month in Canyon County in 2018. These are the rental rates yield a decent return on the investment. It also makes rental houses in the Idaho Falls real estate market better than investing in small apartments, because you can only charge $500-600 a month for those pads.

9. The Market Is Landlord Friendly

One of the reasons you’d want to invest in Idaho Falls rental houses over those in West Coast markets is that the state makes it much easier to protect your property rights and cash flow. The state of Idaho is landlord friendly. Late fees have to be specified by your contract, but they are not determined by state law. Deposits can be as high as you’d like, though you cannot withhold it for expected wear and tear. There isn’t a state payment grace period law. Rental licenses are required to be a landlord, but you don’t face the oppressive regulations states like California have issued.

And you avoid the horror that hit landlords in Oregon with their passage of state wide rent control, limiting the reasons tenants could be evicted and, in some cases, forcing landlords to provide three months’ notice and one month paid rent. The Idaho Falls real estate market is even more favorable to landlords than the bigger Boise market. The owners of Idaho Falls rental houses can sue for court costs and attorney fees in eviction cases. And those who sell Idaho Falls rental houses to lock in their capital gains or invest elsewhere can evict tenants almost immediately.

10. It Is a Low Tax Jurisdiction

It isn’t what you make but what you keep that matters in the end. And Idaho’s overall taxes are lowest in the region. The Idaho State Tax Commission found that Idaho’s total local and state burden was lowest among all eleven western states. You’ll pay more in property taxes as an investor in the Idaho Falls housing market than if it was your primary residence, but you’ll still pay less in property taxes than if you’d bought property in many surrounding states.

“Another great investment place in the state of Idaho is Boise. It has become an extremely alluring place to live. 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.”

Idaho Falls Real Estate Investment Properties

Maybe you have done a bit of real estate investing in Idaho Falls, 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 invest wisely, 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 Idaho Falls, ID. Idaho Falls, Idaho is enjoying strong but steady growth, because it has the ideal mix of affordable real estate, an excellent quality of life and great economics. People move here because they can find good paying jobs and affordable homes, while they look forward to a bright future.

Buying an investment property is different from buying an owner-occupied home. 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.

Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.

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.

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Apart from the Idaho Falls real estate market, you can also invest in Grand Rapids, MI. Detroit may have once been the poster-child for Michigan, the truth today is that Grand Rapids is leading the way. Its diverse, growing economy is fostering a steadily growing population and strong housing market that are one of the best in the country for mid-sized cities.

Different neighborhoods of Grand Rapids, MI have different aspects at play but for the most part you are able to have a quality house to rent out. And if you decide to flip it in the future, you are likely going to get a favorable return on investment with the property you purchase, no matter the location in the city.

A side benefit of the strong job market has been the growth of local incomes relative to rent; in 2016, the rent as a fraction of income ratio was nearly 18%. This means that rents in the Grand Rapids housing market haven’t gone up as fast as incomes but can therefore go up faster. Median monthly rate hovers around $800 a month, but you’ll get far more for single family Grand Rapids rental homes. Median gross rent hit $900 in 2017. This is a far better rental rate than you’d see if you bought those Detroit homes on the market for $100 or the back taxes.

Another market that we suggest is the housing market in Las Vegas, Nevada. Las Vegas is a shining beacon in the desert for those fleeing California or simply hope to make it big. Many others simply come to earn a living serving the many tourists who visit here each year or work at the firms relocating to this tax haven. All of this gives the Las Vegas real estate market a bright future.

According to the PwC’s annual real estate report, the Las Vegas housing market 2019 will enjoy a population growth rate that is well above the national growth rate. This is actually a continuing trend as data from the US Census Bureau shows a net migration of 6.46% from 2012-2016. This earned the Las Vegas real estate market a spot among the best places that people were moving to in 2018. It’s clear the city will hold this title well into 2019 according to the forecast.

Unlike many other Western states, the Las Vegas real estate market is landlord friendly. It isn’t difficult to evict non-paying tenants from Las Vegas investment properties. In general, they have five days from the date rent is due to “cure” the problem or eviction can begin. The same time frame is used to correct issues like lease violations, after which the person can be evicted. After those five days, the case can go to courts, and these are landlord friendly.

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:

Economic diversity
https://en.wikipedia.org/wiki/Idaho_Falls,_Idaho

Real estate is affordable / attracting Californians
https://www.businessinsider.com/californians-priced-out-move-to-idaho-2018-10

Rents rising
https://www.rentjungle.com/average-rent-in-idaho-falls-rent-trends
https://www.idahostatesman.com/news/business/article157225779.html

Landlord friendly
https://www.npr.org/2019/02/27/698509957/oregon-set-to-pass-the-first-statewide-rent-control-bill
https://www.landlordology.com/idaho-landlord-tenant-laws
https://www.idahostatesman.com/news/business/article157225779.html    https://www.avail.co/education/laws/idaho-landlord-tenant-law

ROI
https://www.idahostatesman.com/news/business/article157225779.html

College market
https://en.wikipedia.org/wiki/Idaho_Falls,_Idaho

Low tax
http://www.spokesman.com/blogs/boise/2017/nov/24/study-shows-idahos-overall-taxes-are-lowest-region-48th-nation

Market Data, Trends and Forecast                                                                                https://www.zillow.com/IdahoFalls-id/home-values                                                https://www.littlebighomes.com/real-estate-idaho-falls.html                https://www.neighborhoodscout.com/id/idaho-falls/real-estate            https://www.trulia.com/real_estate/Idaho_Falls-Idaho                              https://www.realtor.com/realestateandhomes-search/Idaho-Falls_ID/overview https://www.realtytrac.com/statsandtrends/foreclosuretrends/id/bonneville-county/idaho-falls https://www.idahostatejournal.com/business_journal/real_estate/real-estate-demand-in-east-idaho-putting-a-crunch-on/article_cc45bfb5-6fc9-5eee-a607-0e8bc91bb14e.html

Supply is Tight                                                                                                                                http://590kid.com/city-of-idaho-falls-address-new-study-on-tight-housing-market

 


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