Between 2018 and 2023, Idahos housing market became a tale of two landscapes.
Boise and its suburbs (especially Meridian) were among the fastest-growing areas in the nation.
Overall, Idahos incorporated cities grew about 2.3% that year, outpacing the states general population growth.
Shutterstock
Such rapid growth meant intense demand for housing in Idahos metro areas.
The Out-of-State Migration Wave
One major factor was in-migration from other states.
During the COVID-19 pandemic, Boise became one of Americas top destinations for people relocating from pricier regions.
This influx of buyers supercharged competition for homes.
Soaring Urban Home Prices
Home prices in urban Idaho climbed at a breakneck pace.
Over the full 20182023 period, Boise-area prices roughly doubled before leveling off.
This rapid run-up made Boise one of the least affordable housing markets in the country by mid-2021.
For example, Boise home values dropped roughly 1015% from their all-time high in 2022 before stabilizing.
Heading into 2023, Boises market showed signs of rebalancing.
Demand was cooler than in the peak frenzy, but supply was even more constrained meaning competition persisted.
Other Urban Centers
Other Idaho cities mirrored these trends on a smaller scale.
Meridian and Nampa, as Boise suburbs, saw rapid construction of new subdivisions to house the growing population.
Even midsize cities like Idaho Falls and Pocatello in eastern Idaho saw strong price growth.
Many small towns and farming communities were stagnant or losing population in the 2010s.
As of 2019, dozens of Idahos tiniest towns were barely growing or even shrinking.
In fact, about 31 Idaho towns (mostly rural) lost residents that year.
The pandemic drove a new interest in getting away to less crowded places.
Remote workers and retirees looked for breathing room, and Idahos beautiful scenery became a magnet.
Resort towns and outdoor recreation hubs saw the most dramatic impact.
For example, McCall a small mountain town by Payette Lake experienced an unprecedented real estate surge.
In short, McCall transformed from a quiet vacation town into a red-hot housing market.
The Sandpoint Story
Far north in Sandpoint, a similar story played out.
Sandpoint is a picturesque small town on Lake Pend Oreille, popular for skiing and summer retreats.
The pandemic homebuying wave sent Sandpoints prices soaring into big-city territory.
Properties outside Sandpoint city (with acreage, views, etc.)
commanded even higher prices, highlighting how rural out-of-town homes became coveted for space and privacy.
Broader Rural Trends
Beyond these well-known resort spots, many rural counties saw renewed housing demand.
Not all rural areas boomed truly remote farming communities without recreational appeal still faced challenges attracting buyers.
Rural Supply Constraints
Its important to note that rural housing supply was even tighter in many cases.
Still, the new normal for rural Idaho was a higher baseline of home values.
What Types of Homes Were People Buying?
Upsizing vs.
Downsizing Trends
Amid these trends, homebuyers preferences in Idaho shifted in response to market forces and life circumstances.
One key pattern was upsizing versus downsizing.
During 20182023, many young families and remote workers upsized their homes.
On the other hand, some Idahoans especially Baby Boomers looked to downsize.
Empty-nesters who had large family homes saw an opportunity to cash out when prices spiked.
However, downsizing in Idahos tight market often proved tricky.
Because smaller homes and condos had also shot up in value, selling didnt always mean saving.
Vacation Homes and Investment Properties
Another trend was the rise of vacation home and investment property purchases.
Idahos attractiveness brought not just primary residents but also those looking for a second home or a rental investment.
Vacation-home buyers made a big splash in 202021.
These second-home buyers were often all-cash or high-budget shoppers, which pushed prices up even more for everyone.
Real estate investors also targeted Idaho during the boom.
That said, the extreme run-up in prices did spur interest in alternative options.
), a huge change from just a few years prior.
The differences are striking.
The earlier period included the aftermath of the 2008 housing crash, which hit Idaho hard.
During the Great Recession, home sales and construction in Idaho plummeted.
Between 2008 and 2011, prices stagnated or fell in many Idaho markets, and foreclosures were common.
The buyer pool in 20082017 was also more locally driven.
Fewer people were moving in from out of state compared to the late 2010s.
This marks a dramatic shift in the demographic of buyers.
Urban vs.
In contrast, 20182023 lifted many boats in both urban and rural Idaho, albeit unevenly.
Boises boom was certainly bigger, but even rural counties saw unprecedented demand in the recent period.
Housing Construction and Supply
Another difference is housing construction.
The Affordability Crisis
Lastly, price levels between the two periods are dramatically different.
By 2022, that index hit 376 literally double the 2017 level.
Most of that growth occurred after 2017.
During 20082017, Idahos prices went from the bottom of the recession back up to roughly their mid-2000s highs.
During 20182023, prices blew past all previous records.
This created a new challenge: affordability.
