Why East Idaho Home Prices Are High

We sat down with Andrew Hobbs for another enlightening real estate conversation. He’s been thinking about moving back to Idaho (Broadway isn’t working out), but he noticed that housing prices have gone up in the last few years. What’s up with that? Most people don’t understand appreciation. Homes in East Idaho haven’t appreciated as they have across the rest of the nation, so we’re seeing a bit of whiplash right now. In the last three years, we’ve appreciated by double digits. Last year, homes appreciated an average of 30%. Five years ago, you could buy a house on the numbered streets for $70,000. If you fast forward to today, that same property will cost around $300,000. It’s a big deal, but you have to think about our prices relative to the rest of the nation. Our prices are high for East Idaho, but we’re only slightly above the national average. These prices are probably here to stay, too. Interest rates will have an impact on prices because rates always affect affordability. If they go up 1%, it affects your buying power by about 10%. If you were qualified to buy a $300,000 house, you’d only be able to purchase a $270,000 one instead. What’s driving those prices? Are more people moving to East Idaho or are the jobs super good? It’s a bit of both; we have a healthy economy and great employers here. The workforce is unlike anywhere else in the country. East Idahoans like to work, so employers are seeing that and coming here.

"These higher home prices are probably here to stay."

We’re also seeing an influx of buyers from Washington, Oregon, and California. They sell their houses high and are shocked by how little homes cost here in comparison. While locals are feeling whiplash, people coming in from the outside feel like our prices are super affordable. We also have very conservative beliefs around here, and people like that. You could call it a political refuge; people are running from some of the beliefs or higher taxes where they used to live.

There are a lot of things driving people to our area; it’s not just the potatoes. If you have any questions about this topic or real estate in general, feel free to call or email us. We’d love to hear from you.