Why is The Treasure Valley Growing So Fast and Can it Be Sustained?
Housing prices and commercial property rents in and around Boise have been rising quickly over the past year. Many people believe that we are headed into another bubble, but according to experts, Boise should continue to grow very quickly over the next few years.....with predictions of another 200,000 people expected to move here by 2030.
Why is the Boise area growing so rapidly right now. According to an article appearing in the Idaho Statesman, the Treasure Valley has growing shortage of office space and commercial real estate. This is causing rents to skyrocket, finally making it more profitable for companies and investors to begin building again.
Combine that with, what is one of the lowest unemployment rates in history (2.7% 9/17) and it means people are moving here to find jobs, which means they need places to live, which means a lack of availability in homes and apartments, which also means higher housing prices and rents.
According to weknowboise.com, "The median home value in Boise reached an all-time high of $261,544 in December of 2017, surpassing the previous record set in September of $258,000. That is a 13.72 percent increase from just twelve months ago."
What all this means is that, once again builders are beginning to invest again in new construction of homes and apartments, which once again means even more jobs will be needed to be filled, etc. and so on and so on...so, now you can see how our current growth pattern should be sustainable for at least the near future.
What does that mean for us? It means that if current growth rates hold true for the next 10 to 15 years you could easily see another 200,000 people living in and across the Treasure Valley by 2030.
Boise's projected population for the next ten years is growth is predicted to grow from a population of around 285,000 currently to approximately 315,000 by 2013...and that's just Boise. Other areas, like Kuna, Nampa and Caldwell areas will see more growth also, as there is more room to expand and it will be more affordable to purchase land in those areas. Housing prices continue to rise because of a current lack of homes for sale, that's why you see homes appreciating so rapidly year over year. It's not that there is a bubble, the lack of inventory is driving the prices up...and according to Tracy Kasper, this will eventually level out and get back to normal yearly appreciation rates, once new construction catches up with the current demand.
Drive almost anywhere in the Treasure Valley and you will see the massive amount of new construction going on....from new hotels in Downtown Boise, New 11 screen movie theater in Downtown Caldwell...business offices, retail buildings and more.
The good news is that almost all experts agree, that this is sustainable and isn't an anomaly or a bubble, because of incoming expected growth..new companies, bringing new jobs and more competitive incomes. When unemployment is low, employers must compete for fewer employees, driving up paychecks for everyone.