While home prices have averaged a 20% year-over-year increase for several months, some cities have posted gains of over 50%. One of these is Boise, which has become crowded with people from the west coast, and where home prices have risen by over 60%. The figure is not just unsustainable. It is headed for a major reset.
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Zillow reports that the median price of a home in Boise was up 59% from March 2021 to March 2022. The only city that topped that was Austin, with a 71% rise. The Boise median home price reached $589,627. The number is so high that it has pushed some long-time residents out of the market. James McGrath, a real estate broker at Yoreevo in New York City, commented: “Anytime prices increased that much in a short period of time, that’s a signal to me that, hey, there’s something brewing here.”
In Boise’s North End neighborhood, prices topped $1 million. This is the first time this has happened to any Boise neighborhood. A report from Florida Atlantic University put Boise at the top of overpriced markets, with homes at a premium of 75% over what they should be worth. In contrast, near the bottom of the list, New York City carried a premium of just under 3%.
Among metropolitan statistical areas, Boise was one of those with the most rapid population growth from April 2020 to July 2021. It rose 4% to 795,268. New home construction has not kept up.
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