Boise Rental Market Trends

Posted by: admin  :  Category: Boise Market Trends, Investment Property, Market Updates

The rental market appears different depending on which side of the rental market fence you’re on – renting homes or owning rental homes.

Investors with rental property in Boise, aka landlords, have been enjoying a long run of a strong rental market in Boise. Rents have steadily increased, and the number of quality candidates has seemed high for years – I first noticed it when the housing market crash led many homeowners back into the rental market.

Renters, on the other hand, have experienced a steady stream of increase in rents and wonder if or when it will slow. Locally and nationally, it’s getting harder to afford rent, as this data-packed MSN article details.

The number of rental households has been sharply increasing since 2005. Thank you Ada County Association of Realtors and Marc Lebowitz for sharing your data.

Rental market trends in Boise

While I can’t provide the crystal ball, I can and will provide data and indicators into the Boise real estate trends and rental market trends and how they’re shifting.

Typically, the rental market and the real estate market work conversely. With the real estate market slowly recovering, one must wonder if, or when the rental market will slowly balance that trend and weaken.

I’m often leery of national sources predicting local trends, however here’s one quote from RealFacts, “In 2014-2015 rents will stall or drift downwards as occupancy rates decline.”

When compared to the national housing market recovery trends, Boise has been speedy.

 

Landlords and investors in Boise shift their ROI/cash-on-cash return expectations

Investors who enjoyed a solid position in Boise since 2009 or so report that new purchases have been dropping and their rate of acquisition has slowed. It’s happened as prices have increased, distressed inventory has decreased and quality investment properties have been challenging to find. With interest at an enticing 4.5% or so and predicted to rise, returns on new purchases will further be affected.

That said, if you have a quality investment property you’d like to offload, the pool of buyers is hungry.

The rental market has seasons and seems to run a little slower in winter than in the busiest Boise moving seasons (spring through fall). If the overall strong rental market weakens in conjunction with the strengthening housing market, landlords would have fewer candidates to choose from, need more time to find the right renter, and start paying closer attention to how each property compares from a price and condition standpoint.

Thank you Ada County Association of Realtors and Marc Lebowitz
for sharing your presentation.

Renters smart to consider buying in Boise

Its safe to say that as the housing market recovers and interest rates eventually rise, it will trend toward costing more money to own less home. If you’re renting and considering buying, it will not behoove you to wait. The housing crash created a lot of fear and is a common reason for waiting to buy. If that’s your primary reason, it’s time to test those emotions with numbers and sprinkle in some market trending for motivation.

Take note- homes on the lower end of the price range are in high demand.

That said, if the rental market “weakens” or “levels out” it’s good news for you, your negotiating power and the future of those steadily rising prices you’ve endured. Landlords priced at the high-end of the scale for their property tend to consider “scaling back” on rents during a weaker market, which would put renters back into a less-competitive position.

Let me know if and how I can help you, wherever you may fall in the process. I’ve had positive reviews from my investor clients (buyers and sellers) as well as my first-time home buyers who make that leap from renting.

Sincerely,

 

Shana Moore, Your Local Boise Real Estate Professional

 

 

Your Local Boise Real Estate Professional

 

2 Responses to “Boise Rental Market Trends”

  1. Foster Boise Local Real Estate Blog » Blog Archive » Boise Real Estate Market Trends Says:

    [...] Boise Rental Market Trends [...]

  2. Foster Boise Local Real Estate Blog » Blog Archive » Boise Housing Market Trends Strong. Says:

    [...] considered affordable. The same cannot be said for the rental market pricing, as we examined in our recent rental market blog. Source: Ada County Association of [...]

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