The following is an executive summary from an analysis of why Idaho’s home prices have risen faster than the rest of the nation. Read the full report online.
Many economists view the housing market as one of the crucial indicators of the overall health of an economy. When the economy is approaching a recession, the real estate market is usually among the first sectors to slow down and among the first to recover during a boom. If this assessment is accurate, Idaho’s housing market prices during the past three years will be critical for future economic forecasts. The average value of single-family homes in the state has increased by about 173% since the third quarter of 2011, compared with nearly 80% nationally. Continue reading
Economic conditions in Idaho were strong through September, a trend that began in early 2010.
Commercial Vacancy Rates
Commercial real estate is a good indicator of whether employers are expanding or businesses are starting up or contracting or shutting down.
According to Reis Inc., a commercial real estate research firm, vacancy rates in the Boise metro area – the only area in Idaho with data – remained high through 2013. The retail market hovered around 18 percent compared with 9.5 percent throughout the country’s western region and 11 percent nationwide. Office vacancies were slightly lower, lingering around 17.5 percent to essentially mirror the 17.7 percent regionally and 17.1 percent nationally. Boise’s downtown core has a significantly lower vacancy rate at 10.6 percent than the outlying areas with 22.5 percent.