Boise livability still tops charts despite rising home prices

Boise continues to receive national attention as being a desirable place to live, and the outcomes are rubbing some residents the wrong way: benefits like a stronger economy are coupled with expensive home prices — a boon for sellers and realtors, but a potential hardship for local buyers. 

Realtor Michelle Bailey, who is also Boise Regional Realtors 2020 president, hears the blame lies with people moving in from out of state, but Bailey sees that “it’s not just people moving here” who are driving up home prices and lowering inventory, “it’s people moving up,” supply and demand in general.

“Idaho is known for being friendly; we have a lot to offer and we’re dealing with the challenges that come with it,” Bailey said. “This isn’t a we versus them, this is an us; the challenges that are coming out of our lack of inventory and our growth are problems that we can solve together.”

Livability.com, which has released an annual report on the Top 100 Places To Live, has ranked Boise as the 35th best city to live in, touting desirable aspects such as convenient access to the outdoors and a sense of openness, promising career opportunities in health care, technology and manufacturing, top-notch schools, affordable homes, and fun attractions like Treefort and Freak Alley. Boise has been on these types of lists for the past 10-15 years, Bailey said, “and as things maybe change in our neighboring states, that may be highlighted a bit more.”

According to Boise Regional Realtors’ most recent statistics, the median sale price of a home last month was just shy of $410,000, and on average a home was on the market for 26 days, down 23.5% year over year. Inventory is down 73.2% year over year. The full report is available at boirealtors.com/september-2020-market-report/#ada.

“Most of the clients I am in communication with are looking at moving or have moved for a different pace of life, different political environment, for all the wonderfulness Idaho has to offer with the four seasons, affordability, just (being) a great environment to raise their family,” Bailey said.

A recent SmartAsset report highlights Boise as the fourth-best city for first-time homebuyers, citing that almost 46% of Boise households are led by individuals younger than 45 and own their house or apartment. Boise has a noteworthy five-year home value appreciation and Idaho has a low foreclosure rate, according to the report.

Additionally, Idaho has other incentives for first-time homebuyers. Earlier this year, the Legislature passed House Bill 589, which establishes first-time homebuyer savings accounts. The annual contribution and interest earned on a first-time homebuyer savings account would be deductible from the taxable income of the account holder, Idaho Business Review previously reported.

Bailey also recommends first-time homebuyers look into options through Idaho Housing and Finance Association, and discuss lending options with local realtors. There’s no commitment sitting down and talking with someone about your options, Bailey said, and hearing about the process, “that’s the best part.”

“I think sometimes the message that gets out there is that it’s so challenging, it’s not worth it, and in reality so many people can do it, and they have options available to them,” Bailey said. “See what works for you.”

‘What if you could live anywhere?’

In light of the pandemic, Livability.com also posed the idea that housing market activity could be influenced by an increased ability and opportunity of working from home.

For Bailey, that has been the case for a few of her recent clients, some even negotiating the option while home shopping. She recalls one client warming to Boise, even though it wasn’t on their radar, and then they discussed the possibility of working remotely with their employer.

Bailey thinks the pandemic has increased the possibility and acceptability of working from home, and she thinks “people are coming together to make solutions to make it happen.”

“People have looked up and are re-examining their life … they’re moving to locations that are maybe more remote, or have a different quality of life than they’re accustomed to,” Bailey said. “I think we’re kind of the beneficiary of that … because we have so many awesome things in the valley.