Many chose starter homes in fast-growing suburbs; others chased affordability and space farther out.
Many of these millennial buyers in Idaho are first-time homeowners, though older millennials are often repeat buyers.
Most millennials prefer the space and yard of a detached house if they can afford it.
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Developers built more townhome communities and small condo projects aimed at entry-level buyers.
Many millennial buyers embraced these options when priced out of single-family houses.
A townhouse or condo often served as an affordable starter home close to city jobs.
High-income millennials (often those able to work remotely from anywhere) were part of this wave.
This boom created a new wave of second-home markets in places with moderate prices and great outdoor amenities.
But millennials, who were younger, were usually on the buying end of those transactions.
20202021 saw some millennial buyers purchase second homes or cabins in Idahos vacation spots.
Idahos relative affordability (at least compared to West Coast cities) made it attractive for these second-home investments.
However, this trend cooled once interest rates climbed and offices called workers back.
Boise became one of the hottest landing spots for these movers.
Impact on Housing Demand
This pandemic-driven influx pumped up housing demand across Idaho.
Boise led the way, but other communities like Coeur dAlene and rural resort towns also saw population jumps.
Changing Settlement Patterns
Remote work also affected where Idaho millennials themselves chose to live.
Others left dense city neighborhoods for more suburban areas since daily commuting was no longer required.
Urban vs. ## Boise Metro Area Boom
Boise and its suburbs saw skyrocketing demand.
The population of Ada County swelled, and home prices followed suit.
This rapid rise made Boise one of the least affordable metros relative to local incomes.
The Boise areas strong job market in tech, healthcare, and education kept drawing young professionals.
Northern Idaho Growth
In the northern part of the state, the Coeur dAlene area also boomed.
The area offers a smaller-city vibe with access to Coeur dAlene Lake and outdoor recreation.
That nearly 70% increase shows how even outside Boise, Idahos attractive towns saw big price appreciation.
Smaller Cities and Rural Areas
Millennials didnt ignore Idahos smaller cities either.
USDA rural home loans (which allow zero down payment) were heavily used by buyers in these areas.
This created serious challenges for millennials, many of whom were first-time buyers without existing home equity.
The Price Explosion
Idaho experienced an extraordinary home price boom.
Since 2018, the state frequently ranked among the top in the nation for price appreciation.
In Boise, the run-up was even sharper reaching over $500k by 2021.
By 2023, the median home price was roughly 6 times the median household income in Idaho.
Historically, a ratio of 3 or 4 to 1 is considered affordable, so 6:1 indicates extreme unaffordability.
An index of 0.4 places Idaho among the bottom five states for housing affordability.
This HOI of 21% put Boise in the bottom ten metros nationwide in affordability at that time.
Creative Solutions to Affordability Challenges
One prominent strategy among younger buyers was communal homebuying.
Local developers even began designing homes for multi-family occupancy, anticipating more buyers would team up.
Another way millennials coped was by using low-down-payment loan programs.
These programs were vital for those without huge savings.
Banks had tightened lending, and some millennials were dealing with job losses or stagnant wages.
During 20082012, Idaho home prices bottomed out and then slowly began recovering.
New home construction was extremely low for years.
In fact, from 2010 to 2020, Idaho added far fewer homes than needed for its growing population.
Housing permits stayed depressed until the late 2010s.
This under-building set the stage for the supply crunch later on.
Coming out of the recession, one could find extremely affordable properties in Idaho.
Even by 2016, the median listing price was about $260,000.
Census data show millennials had lower homeownership rates than previous generations at the same age.
High student loan debts, later marriage ages, and the aftermath of the recession contributed to this.
It wasnt until the economy improved in the mid-2010s that millennial homebuying picked up momentum.
By 2014, millennials became the largest group of U.S. home buyers, and their participation grew each year.
In Idaho, homeownership among young adults started climbing as well.
But compared to 20182023, the pace was slower and steadier.
There wasnt the frenzied market of bidding wars in 2010s like we saw in 20202021.
Much of that growth was in-migration of young families seeking lower costs.
Fast-forward to 20182023, and the same growth accelerated while housing became scarce and expensive.
Conclusion: Millennial Achievement Despite Challenges
Despite the hurdles, millennials in Idaho have shown determination.
