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. The Boise housing market was ranked as the #1 in the U.S., by Realtor.com’s metro level housing forecast for year 2020.
Their main criteria was based on the combined yearly percentage growth in both home sales (0.3%) and prices (8.1%) expected in 2020 among the top 100 largest markets in the country. We’ll tell you a little about Boise. Then we’ll discuss top 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. Is Boise a good place to invest in real estate? To answer this question, let’s take a look at the latest Boise housing market trends and find out the prospects of investing in this city in 2020.
The supply and demand dynamics continue to drive home prices up in Boise. In the last three months, the real estate appreciation rates in Boise have been between 3% to 4%. If they remain steady, the annualized appreciation rate would be around 12% to 16%, which could trigger a massive interest in the real estate investment opportunities in Boise.
Due to the lack of inventory of homes for sale at the lower price points, the share of higher-priced home sales will continue to rise in 2020. Let’s learn more reasons why you may want to consider buying Boise real estate investment properties in 2020. Please note that there are many variables that can potentially impact the value of a home in Boise (or any other market) and some of these variables are impossible to predict in advance.
What Makes Boise a Hot Place For Real Estate Investment?
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 Forecast 2020
What are the Boise real estate market predictions for 2020? Boise housing market 2020 is shaping up to continue the trend of the last few years as one of the hottest markets in the nation. The latest real estate data from Zillow shows that the current median home value in Boise is $323,540. Boise is currently a seller’s market – which means there are a lot of qualified buyers in the market place and not enough homes for sale in the market.
The home prices have risen by 10.4% over the last year. Looking forward in this year, the Boise real estate market forecast is that home prices will continue to increase by 6.2%. Since 2015, the median home price in Boise has increased from $205,000 to $343,000.
Here is the Boise, ID real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 6.2% till Nov 2020.
Boise Housing Market Forecast 2019 – 2021
Here is a short and crisp Boise housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Boise is 78% and it is predicting a positive trend. The LittleBigHomes.com estimates that the probability for rising home prices in Boise is 78% during this period. If this price forecast is correct, the Boise 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
We shall now discuss some of the latest real estate market trends in the Boise such as median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in this region. The Boise real estate market has become an extremely alluring place for investment. 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.
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 in this year as well. 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.
Due to the lack of inventory of homes for sale at the lower price points, the share of higher-priced (above $300,000) home sales continued to rise in 2019. The same trend is predicted to continue in 2020. Boise will continue to be a seller’s market. 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.
Trulia has currently 853 resale and new homes for sale in Boise, ID including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. As per the real estate company called Neigborhoodscout.com, the median house price in Boise is $309,755, which indicates that home prices in Boise are above the national average for all cities and towns in the United States.
Three and four bedroom single-family detached homes houses are the most common housing units in Boise. Other types of housing that are prevalent in Boise include duplexes, row houses and homes converted to apartments. Boise housing market has more homeowners than renters. One or two bedroom apartments are the most common housing units in Boise.
Currently, there are 467 single family homes for sale in Boise, ID on Zillow. Additionally, there are 205 single family homes for rent in Boise, ID. Under potential listings, there are about 0 Foreclosed and 90 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
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.
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.
In the past month, 382 homes have been sold in Boise, ID on Redfin.com. In addition to houses in Boise, there were also 33 condos, 22 townhouses, and 8 multi-family units for sale in Boise last month. The median listing price in Boise is $410K. According their statistics, the Boise housing market is very competitive. Homes in Boise receive 2 offers on average and sell in around 21 days. The average sale price of a home in Boise was $330K last month, up 16.2% since last year. The average sale price per square foot in Boise is $201, up 11.7% since last year. A hot listing in Boise can sell for around list price and go pending in around 5 days.
Here is the latest Boise housing market data for the month of Dec 2019 from Redfin.com. The sale to list price ratio shows us that it was a trending more like a seller’s market in the past month.
Boise Housing Market Trends in Dec 2019
|Median List Price||$410,000|
|Avg. Sale / List||99.3%|
|Median List $/Sq Ft||$200|
|Avg. Number of Offers||2|
|Median Sale Price||$330,000|
|Avg. Down Payment||20.0%|
|Median Sale $/Sq Ft||$201|
|Number of Homes Sold||382|
There are currently 648 homes for sale in Boise, ID on Realtor.com. The asking price of single family homes can start from $195,000 and can go up to $7.7M for a luxury property located in East End neighborhood in the city of Boise, ID. The median home price is East End, Boise is around $540,000 and homes are selling for $245/Sq Ft.
There are currently 195 rental properties in Boise and their rent prices range from $364 to $10,000 per month. According to Realtor.com, in Dec 2019, the Boise housing market was an absolute seller’s market, which means there were more qualified buyers than there were active homes for sale. In other words, the demand for housing outweighed the supply. Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90%. In Boise, the sellers have held extremely good leverage in these negotiations in the past month.
On an average, they could sell homes for 100% of the asking price. A seller would always prefer scenarios which can yield a ratio of 100% or higher. The median list price of homes in Boise, ID was $370.3K in December 2019, trending up 5.8% year-over-year. The median listing price per square foot was $200. On average, homes in Boise, ID sell after 55 days on the market. The trend for median days on market in Boise, ID has gone up since last month, and slightly up since last year.
Analyzing real estate data from multiple sources gives us a much broader perspective of the direction in which a market is moving. The median list price in Boise, ID is $411,015 on Movoto.com. The median list price in Boise was less than 1% change from December to January. Boise’s home resale inventories is 379, which decreased 3 percent since December 2020. The median list price per square foot in Boise is $206.
As you can see in the graph, the median price per sq ft rose to its peak value in Oct 2019, when it was $203. In December 2019 it was $197. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in January.
Boise, ID Foreclosures And Bank Owned Homes Statistics
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.
|Total No. of Foreclosures in Boise||55 (RealtyTrac)|
|Homes for Sale in Boise||232|
|Median List Price||$320,000 (0% drop vs Oct 2018)|
There are currently 55 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 232. In November 2019, the number of properties that received a foreclosure filing in Boise, ID was 22% lower than the previous month and 40% higher than the same time last year.
Popular Neighborhoods in The Boise Real Estate Market
Boise is a minimally walkable city in Ada County. If you are looking to buy real estate in Boise, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Boise investment real estate and you should be able flip it for a lump sum profit. A cheaper neighborhood in Boise might not be the best place to live in. A cheaper neighborhood should be determined by these factor – Overall Cost Of Living, Rent To Income Ratio and Median Home Value To Income Ratio.
Highlands has a median listing price of $775K, making it the most expensive neighborhood in Boise. Central Bench is the most affordable neighborhood in Boise, with a median listing price of $254,000. When looking to invest in Boise real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Boise investment property should be low. The neighborhoods in Boise must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services, schools and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. Some of the popular neighborhoods include Harris Ranch, Highlands, North End, Boise Heights, Depot Bench, Downtown Boise City, Southwest Boise City, Sunset, Warm Springs Heights, Warm Springs Mesa, Big Sky, Foothills, East Side, Southwest Ada County Alliance, Southeast Boise and West Valley.
Here are the 10 best neighborhoods in Boise to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
|2||N 13Th St / Brumback St|
|3||Boise Hills Village|
|4||W State St / Plantation Dr|
|5||N 26th St / Sunset Ave|
|7||Kootenai St / S Federal Way|
|8||Hill Rd / N 36th St|
|9||Greenwood Cir / S Montevista Ave|
Is Boise a Good Place For Real Estate Investment?
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 2020 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.
Investing in Boise Real Estate or Not: The Conclusion
Maybe, you have done a bit of real estate investing in Boise 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. In any property investment, cash flow is gold. Should you consider Boise real estate investment? 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. A good cash flow from Boise investment properties means the investment is, needless to say, profitable.
A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Boise real estate investment opportunity would be a key to your success. If you invest wisely in the 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. You must also collaborate and learn from savvy investors who have retired early on in their lives by investing locally in the Boise real estate market. As with any real estate purchase, act wisely. Evaluate the specifics of the Boise housing market at the time you intend to purchase
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the 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 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2020
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 2020 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.
*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.
Affordable large homes
Strong rental market
Market Trends, Forecast and Reports
Quality of Life