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Idaho Falls: Rising Home Values and Ownership Rates in a Thriving Regional Hub
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Idaho Falls, located in eastern Idaho, is a vibrant city known for its proximity to Yellowstone National Park and its role as a regional center for healthcare, shopping, and entertainment. The city has experienced notable shifts in homeownership rates and housing prices over recent years. From 2021 to 2022, Idaho Falls saw an increase in homeownership from 67% to 70%, while average home prices and average rent prices both rose significantly.
The trend between homeownership percentage and average home prices in Idaho Falls shows a positive correlation. As average home prices increased from $344,762 in 2021 to $399,905 in 2022, a 16% jump, the homeownership rate also rose from 67% to 70%. This suggests that despite rising prices, more residents were able to enter the housing market. The substantial increase in home values may have encouraged more people to invest in property, viewing it as a sound financial decision.
Federal interest rates play a crucial role in homeownership trends. In 2021, when interest rates were at a low of 0.08%, Idaho Falls saw a homeownership rate of 67%. As interest rates rose to 1.68% in 2022, homeownership actually increased to 70%. This counterintuitive trend might be explained by residents rushing to purchase homes before interest rates climbed further, anticipating future rate hikes.
The rental market in Idaho Falls has shown interesting trends as well. As the percentage of renters decreased from 33% in 2021 to 30% in 2022, average rent prices increased from $853 to $995, a 16.6% rise. This significant increase in rent prices, coupled with the growing population from 66,895 in 2021 to 67,718 in 2022, suggests a tightening rental market despite fewer renters overall. The higher rent prices may have incentivized some renters to transition to homeownership.
In 2023 and 2024, Idaho Falls experienced some changes in the housing market. The average home price in 2023 was $374,622, showing a decrease from the 2022 peak. However, in 2024, prices slightly rebounded to $378,666. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and further to 5.33% in 2024, which likely influenced the housing market dynamics.
Looking ahead, predictive models suggest that average home prices in Idaho Falls may continue to rise moderately over the next five years, potentially reaching around $420,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,200 per month within the same timeframe. These projections are based on current trends and economic indicators.
In summary, Idaho Falls has demonstrated a robust housing market with increasing homeownership rates despite rising home prices. The rental market has tightened, with higher average rents potentially driving more residents towards homeownership. The city's growing population and economic stability suggest continued demand for housing, which is likely to support both the ownership and rental markets in the coming years.
