Loading Content...
Zip Code 83706: Boise City's Shifting Home Values and Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 83706, located in Boise City, Idaho, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a shift from predominantly owner-occupied housing to a more balanced mix of owners and renters, alongside substantial increases in both home values and rental costs. The ownership percentage in zip code 83706 has shown a notable decline from 2013 to 2022. In 2013, 53% of housing units were owner-occupied, but by 2022, this figure had dropped to 48%. This shift coincided with a dramatic increase in average home prices. In 2013, the average home price in the area was $175,796. By 2022, it had skyrocketed to $523,208, representing a 198% increase over just nine years. This substantial rise in home prices likely contributed to the decrease in homeownership rates, as affordability became a growing concern for potential buyers.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 83706. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable at around 51%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined. This trend aligns with the general understanding that lower interest rates encourage homeownership due to more affordable financing options, while higher rates can make purchasing a home less attainable for many buyers.
As homeownership rates declined, the percentage of renters in zip code 83706 increased correspondingly. In 2013, 46% of housing units were renter-occupied, but by 2022, this figure had risen to 52%. This shift towards renting coincided with a steady increase in average rent prices. In 2013, the average rent was $1,014 per month. By 2022, it had risen to $1,058, representing a more modest 4.3% increase compared to the dramatic rise in home prices. The population of the zip code also grew during this period, from 30,947 in 2013 to 34,886 in 2022, likely contributing to increased demand for rental properties.
Looking at the most recent data from 2023 and 2024, we see some interesting developments. The average home price in zip code 83706 decreased from $523,208 in 2022 to $482,774 in 2023, marking a 7.7% decline. However, prices rebounded slightly in 2024, reaching $494,535. This recent trend coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market in 2023, although the slight recovery in 2024 suggests some stabilization.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 83706 will continue to experience moderate growth, albeit at a slower pace than the rapid increases seen in the early 2020s. Average rent prices are expected to maintain their upward trajectory, driven by continued population growth and the shift towards renting. However, the rate of increase may be tempered by economic factors and potential new housing developments in the area.
In summary, zip code 83706 has undergone significant changes in its housing market over the past decade. The area has shifted from predominantly owner-occupied to a more balanced mix of owners and renters, with homeownership rates declining as average home prices surged. Rent prices have also increased, though less dramatically. Recent data shows a slight cooling in the housing market, likely influenced by rising interest rates. Moving forward, we expect continued but more moderate growth in both home prices and rents, reflecting the area's ongoing desirability and economic dynamics.
