House prices

Is a State Responsible for Rising Home Prices in Idaho? An economist intervenes

The attraction to the Gem State is unlikely to end in 2022, but there are signs that home prices may start to cool.

BOISE, Idaho – It’s a new year, but for now, still the same housing market in Gem state.

Zions Bank Senior Economist Robert Spendlove said that while Idaho’s real estate market has dominated the rest of the country for several years, there are signs that home prices are rising more slowly, and possibly about to peak.

“It’s really something that we want to see and that we have welcomed,” said Spendlove. “What we found is that the housing market in Idaho continues to be extremely strong, one of the strongest in the economy.”

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This growth has led some people to wonder if Californians are moving to Idaho, which is driving up house prices?

“We just received new data from the US Census Bureau and over the past year net immigration to Idaho was almost 50,000. It’s a huge leap and it’s having a huge impact on the market. of Idaho, which is driving demand for home prices, ”Spendlove said.

He went on to explain that people leaving California are not the main driving force, but it is a contributing factor. Having said that, people from many other states are also moving to Idaho. Another contributing factor: the lack of inventory.

“We know anecdotally that a lot of these people are from California and also come from parts of the east coast like New York or Pennsylvania. There is a lot of pull for Idaho right now, ”Spendlove said.

He believes the attraction will continue to grow until 2022.

“Although prices are up compared to other parts of the country, Idaho is still affordable, so we will continue to see prices rise, we will continue to see strong demand, but we will not see this strong acceleration. Says Spendlove.

It’s important to note that although many Californians are moving to Gem State, the analytics website analyzed census data and found that there was also a significant number of people coming. from Washington, Oregon, Utah, Arizona and Colorado.

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