TR_June_2021_LR

HOME PRICEMETRICS Home prices in Boise have been smashing records in the last year. From March 2020-2021, median single-fam- ily home prices rose from $335,000 to $430,000—a 28.5 percent year-over-year increase. SFR prices in Boise have doubled in the last five-years, and timely buyers who purchased homes around 10 years ago at the post-recession lows have seen the values triple. The spike in buyer demand is contributing to the incred- ible appreciation due to the record-low supply of inventory. Currently supply is at the lowest levels on record—near only 1-2 weeks of supply. Years of under-development are adding to the supply issues and homebuilders are struggling to keep up with increased demand. The National Association of Home Builders indicates lumber prices more than tripled pre - vious all-time high prices—and estimates this adds an additional $24,000 in cost to the average single-family home nationwide. Additionally, pandemic related supply chain delays have led to shortages of other building materials such as cabinets, nails, glue, appliances and other construc- tion materials causing further delays and shortages in the building process.

INDEXEDVALUES –VS– JOBS & INCOME

Boise ID : 9-Year Index, 2012 to Current

200%

180%

Legend

Employment Change Median Household Income Home Value Rent Price

160%

140%

120%

100%

80%

60%

40%

20%

0%

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

The Boise market is predicted to continue appreciating for 2021 and beyond, although moderating from the recent outsized gains. The market momentum will continue due to high population growth and buyer demand, combined with a shortage of homes and low mortgage interest rates will propel home prices higher through 2021.

Boise MSA Home Price Forecast through 2021: +7% to +10%

Current Rent Price

5yr Rent Change

Current Home Price

© 2021 Mapbox © OpenStreetMap

© 2021 Mapbox © OpenStreetMap

© 2021 Mapbox © OpenStreetMap

$1,250

$1,600

25.0%

50.0%

$250,000

$500,000

Rent vs Income

Median Household Income

Gross Yield

© 2021 Mapbox © OpenStreetMap

© 2021 Mapbox © OpenStreetMap

© 2021 Mapbox © OpenStreetMap

25.0%

40.0%

$40,000

$90,000

5.5%

8.0%

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