Rental properties are all the rage for real estate investors these days. With more people renting than ever before and home prices set to rise nationally, the rental market is where you want to be.
However, some rental markets can be much more lucrative than others. Take Boise, Idaho, for example. This mid-sized city in the northwest United States is booming with a housing market that defies pandemics and consistently grows in value.
For any real estate investor looking for an opportunity to maximize their ROI, you may need to look no further than Idaho’s City of Trees.
Why Boise?
You may not find another opportunity that’s quite as good of an investment as Boise. This city is booming in population, low in housing inventory, and increasingly high in demand. The home values--still comparatively low--are consistently on the rise. This has led to an exponentially growing rental market that’s worth more every day.
With a 2020 population of 234,576, Boise remains a mid-sized/smaller city nestled in beautiful high desert, rolled into the mountains, and carved down the middle with a gorgeous river. Recreation and natural environments are within a stone's throw from Boise, with Idaho being in essence one big national park.
It’s really no wonder that this long-kept secret gem of the Gem State has boomed in population 14.05% in the last 10 years. And with this booming population comes an always-high demand in housing.
With the coronavirus pandemic shaking up every industry, growth in mid-sized cities is even more likely. Many are looking to flee highly packed metro areas for the quiet life a place like Boise can offer. That isn’t to say that Boise doesn’t also possess the entertainment offered by a larger city. With a flourishing (under normal circumstances) nightlife including a robust music, comedy, and bar scene, there is plenty to do in Boise.
Rental Income Opportunities in Boise
Comparatively, Boise rent prices remain lower in most areas than national averages. In conjunction with rising house prices, this is driving an increasing portion of the population towards rentals. The demand is insane, and it’s reflected in the low vacancy rates.
National rent averages across 2019, according to ApartmentGuide, were:
$1,586 for one-bedroom apartments
$1,808 for two-bedroom apartments
$1,951 For three-bedroom apartments
$1,594 for the average single-family house rental (per Zillow)
Put in comparison, Boise’s multifamily unit averages, according to We Know Boise, are:
$894 for one-bedroom apartments
$1,103 for two-bedroom apartments
$1,178 for three-bedroom apartments
$1,609 for the average single-family house rental
In short, while Boise’s rental averages for multifamily housing units might not be up to national averages, those of single-family housing are beginning to surpass them. With rents having risen 14.6% from the previous year in Boise, the income potential of rentals in the Boise-area are substantial and growing all the time.
With the kind of demand in the Boise area--even in light of the pandemic--the rental market here is a real estate investor’s dream.
With widespread predictions of Boise’s housing market to remain one of the strongest in the nation in the near future, few real estate investments are safer than the Boise area. Whether you are looking to build or buy rental units, the City of Trees is calling.
For more information on Boise-area real estate and property management, contact 208.properties today.