If you have not already checked out our comprehensive report that identifies the market trends in the Idaho Falls rental market, we would love to get you a copy. It shows you what you need to know as an investor, particularly when it comes to multifamily rental properties.
We don’t have to tell you how hot the Idaho Falls rental market has been in recent years. In 2021 the Milkin Institute named Idaho Falls the “Best Performing Small City,” which is a well-deserved title. The rental landscape has changed for investors over the last few years, leading them to look at futures returns more than immediate cash flow.
Increasing Home Values in Idaho Falls
The demand for housing in Idaho Falls has driven up multifamily property values by an average of 8 percent. To earn long-term returns on these investments, you need to invest early and you need to hold onto those assets for as long as you can.
What is driving the demand for rental housing? One major factor could be the increase in home values and property prices. As you will see in our report, home prices had increased by 15 percent year-over-year since January of 2021, which is a 3.2 percent increase compared to the year prior.
Trends in Idaho Falls Investing
If you’re wondering why these future values are just as important to investors as cash returns, there are a few things that have happened in the market recently that inspired new priorities.
Incomes are increasing, and so is the population. There has been a lot of economic growth in and around Idaho Falls, making it an ideal place for investors to earn some short term and long term benefits.
The strong economy and stable population numbers have driven an increase in demand for homes, which has triggered a decrease in supply. Home prices have gone up, but so have home values, which means acquiring a home is less affordable. That’s driven an increased demand for rental property.
Increasing Tenant Pool in Idaho Falls
We found that more than 27 percent of the Idaho Falls population rented their home. This is a number that is steadily growing, not only because there are larger numbers of people moving into the area, but also because the cost of owning a home has risen so high that it’s out of reach for a number of otherwise qualified individuals. They prefer to rent until they can comfortably afford a home.
This higher demand for well-maintained rental homes means that rental values have also increased. Property owners are earning more in rent than they ever have before. Tenants are willing to pay it; they are employed, stable, and earning enough income to cover the cost of high quality rental housing.
Multi Family homes are especially in demand. Inventory has dropped and there’s less new construction housing in development. The average rent in Idaho Falls for a one-bedroom apartment in a community with amenities is now over $1,000. For a three-bedroom rental home, the rent is nearly $1,500. This is excellent news for investors hoping to earn more on their multifamily rental properties.
Check out our additional blogs that take you further into the full market report that we recently published. You can download your copy here. Find out what 2021 is likely to hold for your property values and the entire rental market.