Big Shifts in Boise's Rental Market

Big Shifts in Boise's Rental Market: What You Need to Know

The Boise rental market is experiencing significant changes that could impact your next housing decision. Whether you're currently renting or considering renting, it's crucial to understand the current trends and incentives available. Let’s dive into what’s happening with rental prices, why it’s happening, and how this might affect your decision to buy or rent in Boise going forward.

Understanding Rental Market Dynamics

The rental market in Boise is influenced by several key factors, including the difference between single-family homes and multi-family units, such as apartments. Over the years, Boise has seen substantial growth, particularly noticeable in the increase of apartment complexes. For example, there are around 1,444 apartment units under construction in Meridian and about 1,300 in Boise as of 2023, marking a significant change from previous years. Single-family homes have also seen growth, but they cater to a different market and demand, affecting rental prices differently. The key factors affecting rental prices are supply and demand. When more apartments are built than there are renters, rental prices tend to decrease. Conversely, if too many homes or apartments are built that most people can't afford, rental prices will adjust accordingly.

Recent Changes in Rental Prices

In Boise, average rental prices have risen dramatically over the past few years. For example, the average rent was $1,400 per month in 2020 and climbed to $2,000 per month in subsequent years. However, while single-family home rents have remained relatively consistent, hovering around $2,000 to $2,500, apartment rents have started to decrease. Currently, apartment rents that were once $2,000 per month are now averaging around $1,600 per month. This decline is significant because it’s the first time in a long time that Boise has seen a decrease in multi-family rental prices. This trend is expected to continue as long as the supply of new apartment complexes outpaces demand.

Opportunities in the Current Market

The decrease in apartment rents presents a unique opportunity for renters in Boise. If you're looking for new housing, the current oversupply of apartments could mean lower-priced rents or move-in incentives, such as one month free rent. This effectively lowers your rent by about $100 per month, making it a great time to rent while saving money to potentially buy a home in the future. For those considering buying a home, it's worth noting that mortgage costs remain stable over time, unlike rental prices which tend to increase. For example, if you bought a home 10 years ago, you would still be paying the same mortgage today, whereas rent would have likely increased. Therefore, while it might be cheaper to rent in the short term, the long-term goal should always be to buy, as home prices will continue to rise, making it more expensive to buy later.

Advice for Renters and Buyers

It's important to understand that while renting might be a smart move right now, this is a rare scenario in Boise. Taking advantage of lower rents now can help you save money to buy a home in the near future. However, if you're in a position to buy now, it’s essential to consider the best option for you. Home prices are expected to continue increasing, so buying sooner rather than later could be advantageous. 

If you have any questions or need guidance on navigating the Boise rental or real estate market, don’t hesitate to reach out. As local real estate agents, we are here to help with any concerns you have, not just when buying or selling a home. Feel free to call or text us anytime, or leave a comment if you prefer. We are always ready to respond to your questions. For those interested in buying, tour every home available for under $400,000 in Meridian

Boise Idaho's Shifting Rental Market

Post a Comment