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Zip Code 83702: Home Values Soar in Boise's Downtown 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
Zip code 83702, located in Boise City, Idaho, has experienced notable shifts in its housing market over the past decade. This area, known for its vibrant downtown and proximity to the Boise River, has seen fluctuations in homeownership rates and significant changes in both average home prices and average rent prices.
The homeownership rate in zip code 83702 has shown a gradual increase from 48% in 2013 to 51% in 2022. This trend coincided with a substantial rise in average home prices, which grew from $272,163 in 2013 to $763,748 in 2022, representing a remarkable 180% increase over nine years. The relationship between homeownership rates and average home prices appears to be complex, as the percentage of homeowners continued to rise despite the steep increase in housing costs.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the initial increase in homeownership from 48% to 49%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership in the zip code continued to grow, reaching 52% by 2019. This suggests that other local factors may have been influential in driving homeownership despite rising interest rates.
Renter percentages in zip code 83702 have inversely mirrored the homeownership trend, decreasing from 52% in 2013 to 49% in 2022. Interestingly, average rent prices have shown a general upward trend during this period, rising from $831 in 2013 to $948 in 2022, with some fluctuations in between. The peak average rent of $1,038 was observed in 2021. The population in the zip code has also grown from 22,160 in 2013 to 22,770 in 2022, which may have contributed to the upward pressure on rent prices despite the decreasing percentage of renters.
In 2023 and 2024, the housing market in zip code 83702 experienced a significant shift. The average home price decreased from the 2022 peak of $763,748 to $695,040 in 2023, followed by a slight increase to $699,560 in 2024. This correction coincided with a sharp rise in federal interest rates, which jumped to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices in the area.
Looking ahead, predictive models suggest that average home prices in zip code 83702 may stabilize or experience modest growth over the next five years, assuming interest rates remain elevated. The recent price correction could make homeownership more attainable for some residents, potentially leading to a slight increase in the homeownership rate. Average rent prices are projected to continue their upward trajectory, albeit at a more moderate pace, driven by the area's consistent population growth and the possible shift of some potential buyers to the rental market due to higher mortgage rates.
In summary, zip code 83702 has demonstrated resilience in its housing market, with increasing homeownership rates despite significant rises in average home prices. The interplay between federal interest rates, local economic factors, and population growth has shaped a dynamic housing landscape. The recent cooling of home prices, coupled with high interest rates, marks a new phase in the area's real estate market, potentially altering the balance between homeownership and renting in the coming years.
