Idahos housing market experienced dramatic changes from 2018 through 2023, especially among its highest-earning households.
But what have those wealthy buyers have been doing?
What types of properties and locations do they favor?
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An influx of high-income newcomers combined with rising local prosperity has expanded the states luxury home market.
Whos Buying Luxury Homes?
The California Connection
High earners from California, in particular, have been arriving in large numbers.
Idahos pro-business climate with moderate taxes and less regulation made it especially attractive to these migrants.
The end result is that from 2018 to 2023, Idahos pool of $500K+ earners grew substantially.
This represents a shift from the early 2010s, when living closer to downtown Boise was not as cost-prohibitive.
Every community in Ada County saw price appreciation, but the luxury segment truly boomed in suburbs like Eagle.
Coeur dAlene in North Idaho and Sun Valley/Ketchum in the south-central mountains are prime examples.
High-end real estate in Coeur dAlene was suddenly in extreme demand.
Nearby Sandpoint and Lake Pend Oreille also saw increased interest for estate homes and ranches.
In Sun Valley, an iconic ski retreat for the rich, vacation home purchases surged.
Private jet traffic into Sun Valleys airport hit all-time highs as affluent owners flew in to isolated luxury lodges.
Larger houses with more land and amenities have been in high demand among this cohort.
This made spacious homes a must-have.
What used to be luxury extras became near necessities.
Land and Outdoor Living
Upsizing wasnt just about interiors.
High-end Idaho buyers also looked for land.
Estates with room for outdoor kitchens, pools, sports courts, or horse facilities saw heightened interest.
Empty-nesters in Boise, for instance, might sell a 4,000 sq.
ft luxury condo or a single-level patio home.
Retirees cited reasons like their previous homes being too large or wanting to live on one level without stairs.
First, its important to note that almost all home purchases by this group were owner-occupied primary residences.
That said, a significant number of Idahos priciest homes are not full-time occupied by their owners.
In Ada County the figure was also ~22% in 2020.
Investment Properties
Wealthy Idahoans did not ignore the hot rental market.
With rapid population growth and limited housing supply, rents were climbing steeply in 20182023, presenting an opportunity.
Unlike some states that saw an exodus of the rich, Idaho retained its wealthy and attracted more.
Idaho vs.
Along with Idaho, places like Arizona, Texas, Utah, and Montana saw upscale buyers pouring in.
The common draw was lower taxes, more space, and often warmer climates or outdoor amenities.
By early 2023, U.S. luxury home sales had plunged 45% year-over-year, a record decline.
Tax Considerations
High-income homebuyers everywhere pay attention to tax implications.
Idahos peers in attracting those buyers states like Texas, Florida, Tennessee often boast zero income tax.
Compared to California (13% income tax and hefty property taxes), Idaho looked appealing.
In a word: contrast.
Market Conditions
The 20082011 period was marked by a housing downturn.
Idahos home prices plummeted after the 2007 bubble burst, and even wealthy buyers were cautious.
By contrast, 20182021 saw an exuberant upswing.
Home values not only recovered but soared well past their mid-2000s peak, reaching all-time highs.
Many were long-time Idaho residents (business owners, physicians, etc.)
or retirees moving from neighboring states.
Fast forward to 20182023, and the demographic of incoming wealthy shifted younger and more career-driven.
They were tech entrepreneurs, remote executives, and high-earning professionals in their 30s-50s.
The scale of out-of-state wealth also grew in the recent period.
Many were recovering from stock market losses or had seen home equity evaporate in 2008.
Purchasing decisions in 20082012 were often driven by practicality and value.
In 20182023, the motivations skewed more optimistic and lifestyle-oriented.
High-end subdivisions in Boise stalled out around 2009, and spec mansions sat on the market.
In 20182023, Idaho faced the opposite problem: under-supply.
This scarcity meant that when demand spiked, there werent enough properties, driving prices up sharply.
Boises luxury suburbs and the states picturesque resort towns have been the primary beneficiaries of their dollars.
Comparing the late 2010s/early 2020s to the prior decade highlights just how extraordinary recent years have been.
Idaho went from a post-recession hidden gem to a buzzy destination for the wealthy.
As of 2023, the frenzy has eased, but Idahos high-end home landscape has been permanently altered.
