Where Are Home Prices Heading in Idaho?
May 2025
Idaho had 7,986 active listings, per FRED data—up significantly from early 2025 levels but still constrained relative to historic norms
Late 2021
While methodology changed in December 2021, it’s clear that inventory then was starkly lower—under 5,000 active listings statewide (based on FRED’s trend line pre-revision).
Investor Insight
Inventory, though rebounding, remains limited. With fewer homes on the market than typical, buyer competition persists—ideal for well-capitalized investors seeking stable or rising asset values.
Price Growth: Appreciating But Slowing
Median Home Values
Redfin (May 2025): Median sale price statewide = $495,400, up +1.7% YoY
Zillow (May 2025): Average home value = $473,403, +1.2% over 12 months
Median List (Jan 2025): $480,500, up 7.5% from Jan 2024
Metro Breakdown (May 2025)
Eagle: +14.6% YoY
Coeur d’Alene: +9.8%
Moscow: +7.6%
Meridian: +5.0%
Comparisons to 2021
Back then, typical annual price jumps were in the high single to double digits (e.g., Boise saw -20% to -30% growth 2020–21).
By mid‑2025, annual growth has moderated to -1% to -7%, though certain suburbs still outperform.
Investor Takeaway
Price momentum has cooled from the boom years—boosting long-term stability, but growth remains healthy in select geographies.
Market Dynamics & Listing Behavior
Sales above list price: 14.4% of Idaho homes sold above asking—a drop from 17.5%+ in early 2022 Sale-to-list ratio: 98.9%, slightly improved year-over-year
Price drops: 38.9% of listings experienced price reductions—up ~9.6 points YoY
Months of supply: 3 months balanced, though some counties remain under six months
Overall, this signals a cooling but competitive market—perfect for strategic investors who can identify undervalued properties.
New Construction's Role
In 2025, new homes made up an average of 40% of listings statewide, highest nationwide:
In Canyon County: 57.4% new builds.
In Ada County: 52.2%
Yet, construction hurdles remain: elevated material costs, labor shortages, and slow zoning/permitting (e.g., Ada County averaging 90+ days)
Investor Angle
The new‑build concentration offers opportunities in brand‑new rental units or midstream flips. However, supply chain bottlenecks and regulatory hold-ups can extend ROI timelines.
Affordability & Buyer Profile
Starter home threshold
Now priced above $426,000, with required incomes over $100,000/year at typical 7% mortgage rates.
Mortgage climate
Rates hovering just under 7% are suppressing first-time buyers; approximately 75% of potential buyers are waiting for better rates or prices.
Investor Insight
Renters, especially families or young professionals, are likely to stay in place—creating consistent rental demand. However, rising mortgage costs may limit upside for resale investors.
Key Investment Opportunities
Suburban Growth Markets
Why It Matters: Eagle, Meridian, Star are seeing above-average price increases (+5–15%)
New-Build Rentals
Why It Matters: High proportion of new builds with strong rental demand—ideal for buy-to-rent strategies.
Undervalued Segments
Why It Matters: Price drops in certain listings present negotiation leverage.
Transitional Counties
Why It Matters: Ada, Canyon, Bannock, Bonneville remain supply-constrained but are developing robust new-build pipelines
2025 vs. 2021 | Core Takeaways for Investors
Inventory: Still low overall, but new builds are helping, especially under $500K.
Prices: After a steep climb in 2021, growth has shifted to a more sustainable +1–7% annual range.
Markets to Watch: Surge in suburbs like Eagle (+14%) and steady rises in Coeur d’Alene and Meridian.
New Construction: Offers expanded supply but introduces delays and cost risks.
Affordability Pressure: Housing remains expensive; demand leans toward quality rentals over purchases.
For investors eyeing Idaho in 2025, the landscape is one of measured opportunity:
Buy-to-rent in high-growth suburbs with strong demand.
Scout distressed/new listings for deals amid cooling competition.
Leverage rental yield stability as affordability challenges persist for buyers.
Idaho’s housing market has matured since 2021, transitioning from a red-hot boom to a stable, investor-friendly environment—especially for those targeting strong-performers like Meridian, Eagle, and build-to-rent properties.
