Idaho’s economy has grown rapidly over the past decade, yet the benefits of growth have not been evenly distributed. While Idaho’s poverty rate is the 15th lowest in the nation at 10.6% ¹ and unemployment remains low, many Idahoans continue to struggle with the rising cost of living.
Median home prices in Idaho have more than doubled since 2016, and rents have risen at one of the fastest rates in the nation.² Combined with higher costs for essentials such as food, child care and transportation, even full-time workers often find themselves increasingly burdened by the rising cost of living.
Poverty and rising costs of living have significant impacts on the labor force, from high mortgage rates constraining labor mobility to the rising cost of raising a family depressing the birthrate.
Measuring poverty
The U.S Census Bureau produces annual poverty thresholds by family size and number of children. Figure 1 contains the poverty thresholds for 2023 by size of family unit and number of related children. Poverty thresholds for families with six or more children under 18 years old, were removed from this analysis for brevity.
For example, Figure 1 demonstrates that in 2023, families with two parents and two children under 18 years old making an income less than $30,900 annually, are considered in poverty.
Figure 1. Poverty thresholds for 2023 by size of family and number of related children under 18 years old (in dollars)
Source: U.S. Census American Community Survey 2024
There are some important caveats to this measure, such as those who live in institutional group quarters (such as prisons or nursing homes), military barracks, college dormitories and those in living situations without conventional housing (and who are not in shelters) are not included. Additionally, unrelated children under 15 years old (such as foster children) are not included due to how the income questions are asked.
To note, poverty thresholds do not vary geographically as they are used at the national level.³
Poverty in Idaho
While Idaho’s poverty rate is lower than the national rate at 11.1% ¹, poverty distribution across the state is not spread evenly. The poverty rate for urban counties including Ada, Bannock, Bonneville, Canyon, Kootenai, Latah, Madison, Nez Perce and Twin Falls counties in the state from 2019-2023 is 12.7%.
This is compared with the rate in over 30 Idaho rural counties at 11.9%. The data showcases that the workforce makeup of urban counties has a greater concentration of lower wage occupations in hospitality, retail and food service than their rural counterparts.
Butte and Madison County stand out as the two counties with poverty rates above 20%. Butte County has the lowest median household income in the state at $43,281, roughly 60% of Idaho’s median household income. Butte County includes Idaho National Laboratory (INL) which employs a high wage workforce, however 97% of INL’s staff live outside of Butte County.⁴
Unlike Butte County, Madison County’s high poverty rate seems to be rooted in the demographic makeup of Rexburg, specifically the students of Brigham-Young University, Idaho. Approximately 50% of Madison County’s population is ages 15-24, with 7% of the population under 5 years old (compared with the state level of 6%). Many of the students are young families working part-time, making a low wage and therefore, a significant proportion of the population are considered in poverty.⁵
Figure 2: Poverty rate by Idaho County (2019-2023)
Source: U.S. Census American Community Survey
Cost of living
The rising cost of living is placing a growing burden not only on those living in poverty but also on individuals and families above the poverty line, who are feeling the strain from expenses ranging from housing to clothing. Figure 3 illustrates the percentage change in the per capita (per person) personal consumption expenditures, otherwise known as consumer spending from 2013 through 2023.
Idaho’s per-person consumer spending rose 2% faster than the national average. Idahoans are spending a growing amount on critical needs such as vehicles and motor parts (over 32% compared with the U.S.), transportation services (over 30% compared with the U.S.), housing and utilities (over 10% compared with the U.S.) and clothing and footwear (over 6% compared with the U.S.). The health care expenditure has risen substantially but is still lower than the national level by 4%.
Figure 3: Per capita personal consumption expenditures (2013-2023)
Source: Bureau of Economic Analysis 2024
Other institutions have data products to calculate the cost of living. The Economic Policy Institute produces an annual Family Budget Calculator that measures the income needed to attain a “modest yet adequate standard of living.” ⁶ According to the Family Budget Calculator, the annual income needed to support a family of two parents and two children in Idaho is $93,864, which only 39% of households in Idaho can afford.⁷
Labor force implications
Poverty and the rising cost of living isn’t just an issue that affects individuals or families, it affects the entire labor force and the greater community. Rising housing costs, specifically elevated mortgage rates, are keeping homeowners in their home as moving would mean losing the rate they had before mortgage rates ballooned. Prospective buyers and renters are locked out of the market by high rates and sticker prices, leading to greater shares of income going to housing, or an increased commute time as lower-income workers will need to travel farther to get to work.⁸
This limited labor mobility can magnify regional inequality, as areas with greater economic opportunity will attract wealth and investment but remain inaccessible to a significant portion of the workforce due to unaffordable housing markets.
Rising economic pressure is also impacting demographic decisions. As the costs of living continue to rise, starting or expanding a family has become increasingly financially daunting. Families delay having children or decide not to have children as the resources needed to raise children are out of reach.
A survey done by the United Nations Sexual and Reproduction Health Agency found that more than half of their respondents said, “Economic issues were a barrier to having as many children as they wanted.” ⁹ This demographic trend carries long-term risks to the labor force as shrinking birthrates will reduce workforce growth in the future.
Education is an important piece of the puzzle. In Idaho, the poverty rate for individuals who did not graduate high school is 19.1%, compared with 11.7% with a high school diploma or equivalent or 4.4% with a bachelor’s degree or higher.¹⁰
Limited education and training restricts access to higher-paying occupations which makes the challenges of affordability even harder for those who are struggling.
Education and training are one of the most powerful ways to get out of the cycle of poverty and increase wages. Programs like Idaho LAUNCH help break this cycle by providing funding for Idahoans to pursue in-demand career training, increasing access to education and training for all Idahoans.
The department offers many services geared toward job seekers including assistance with job searches while also getting connected to various training opportunities, such as Idaho apprenticeships. Offices are located throughout the state.
Seth.Harrington@labor.idaho.gov, regional economist
Idaho Department of Labor
208-696-2364
Footnotes
- U.S. Census Bureau, Poverty Status in the Past 12 Months. Accessed September 2025. S1701: Poverty Status in the Past … – Census Bureau Table
- Federal Reserve Bank of St. Louis, Housing Inventory: Median Listing Price in Idaho. Accessed September 2025. Housing Inventory: Median Listing Price in Idaho (MEDLISPRIID) | FRED | St. Louis Fed
- U.S. Census Bureau, How the Census Bureau Measures Poverty. Accessed September 2025. How the Census Bureau Measures Poverty
- University of Idaho Extension, Economic Development Challenges for Small Towns in Idaho’s Butte, Custer, and Lemhi Counties. Accessed September 2025. Economic Development Challenges for Small Towns in Idaho s Butte, Custer, and Lemhi Counties – University of Idaho
- U.S. Census Bureau, ACS Demographic and Housing Estimates. Accessed September 2025. DP05: ACS Demographic and … – Census Bureau Table
- Economic Policy Institute, Family Budget Calculator. Accessed September 2025. Economic Policy Institute | Family Budget Calculator
- U.S. Census Bureau, Income in the Past 12 Months (in 2023 Inflation-Adjusted Dollars). Accessed September 2025. S1901: Income in the Past 12 Months … – Census Bureau Table
- Bipartisan Policy Center, Exploring the Affordable Housing Shortage’s Impact on American Workers, Jobs, and the Economy. Accessed September 2025. bipartisanpolicy.org/download/?file=/wp-content/uploads/2024/03/Exploring-the-Aff-Housing-Shortage-Impact-on-American-Workers-Jobs-and-the-Economy_BPC-3.2024.pdf
- United Nations Population Fund, The Real Fertility Crisis: The pursuit of reproductive agency in a changing world. Accessed September 2025. SWP Report 2025 | United Nations Population Fund
- U.S. Census Bureau, Educational Attainment. Accessed September 2025. S1501: Educational Attainment – Census Bureau Table
This Idaho Department of Labor project is funded by the U.S. Department of Labor for SFY26 as part of a Workforce Information grant (41%) and state/nonfederal funds (59%) totaling $860,595.
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