Idaho experienced a dramatic housing boom from 2018 through 2023. Home prices rose faster than almost anywhere else in the country, with the median home price roughly doubling in just five years – from the low $200,000s in 2018 to the mid $400,000s by 2023. This was the steepest increase of any state during that period. Even traditionally affordable areas felt the surge – in Kootenai County (Coeur d’Alene area), the typical single-family home price climbed from the low $300,000s in 2018 to around $530,000 by mid-2024.
These rapid gains far outpaced local incomes. Statewide, home values rose about four times faster than household incomes. By 2023, the median household income in Idaho was around $74,000 (only a bit higher than 2018), yet the median home price was roughly six times that income. With house prices so high relative to pay, affordability plummeted. By 2023, Idaho had become one of the five least affordable states for homebuyers. Many local families simply could not keep up with the cost of housing.
Pandemic Effects on the Housing Market
The COVID-19 pandemic further turbocharged Idaho’s market. In 2020 and 2021, mortgage interest rates hit record lows (around 3% for a 30-year loan). These ultra-low rates made it cheaper to borrow money, so buyers could stretch their budgets and bid more for homes. At the same time, there were too few homes for sale to meet the surge in demand.
This led to intense bidding wars during 2020–2021. It became common for homes to sell above asking price within days of listing. Many first-time buyers felt pressure to hurry and “buy now,” fearing that if they waited, prices would climb even higher.
Market Cooling in 2022-2023
By late 2022, the market began to cool off. The Federal Reserve raised interest rates to fight inflation, which pushed mortgage rates above 6% and close to 7%. Higher loan costs made monthly payments more expensive, pricing some buyers out. As a result, Idaho’s home sales slowed down, and prices leveled off or dipped slightly in 2022 and 2023.
Buyers suddenly had a bit more negotiating power than during the frenzy of 2021. There were more homes to choose from, and houses stayed on the market longer (by late 2022 a typical listing in Boise might take two months to sell, compared to just one month the year before).
Even with this breather, affordability remained a serious challenge in 2023. Because mortgage rates were so much higher than a couple of years earlier, the cost to finance a home hit record highs. One analysis found that by mid-2023, a median-income household in Idaho could afford only about 67% of the price of a median home in the state. (Back in 2019, that same household could afford over 100% – meaning the whole price – of a median-priced home.) In other words, home ownership was now out of reach for a large share of Idaho’s middle-class families without significant assistance or savings.
Who Are the Homebuyers? First-Timers vs. Repeat Buyers
The profile of Idaho’s homebuyers shifted from 2018 to 2023, with important changes for first-time buyers. Many Millennials (people born in the 1980s and 90s) reached their prime homebuying years in this period. However, first-time buyer participation actually fell to historic lows by 2022. Nationally, only 26% of home purchases in 2022 were by first-time buyers – the lowest share since tracking began in 1981. This means roughly three out of four home buyers were repeat buyers (people who already owned a home before).
Cash-Rich Buyers’ Advantage
There are a few reasons behind this decline. During the height of Idaho’s boom, cash-rich buyers had a big advantage. Many existing homeowners (often older, wealthier individuals) could sell a house in California or another high-priced market and bring a lot of cash or home equity to Idaho. These buyers often outbid true first-timers who didn’t have such resources.
As a result, the typical first-time buyer ended up waiting longer and was older than in the past. By the early 2020s, the median age of first-time homebuyers had climbed into the mid- to late 30s – a record high, reflecting how difficult it became for younger buyers to enter the market.
Baby Boomers’ Market Influence
At the same time, Baby Boomers (people roughly in their late 50s to 70s) became a dominant force in the market. By 2022–2023, Boomers actually surpassed Millennials as the largest generation of homebuyers nationwide. In Idaho, many Boomers – often recent retirees from pricier states – relocated or competed for homes as well.
Boomers frequently had significant cash or home equity, making their offers tough to beat. Many older homeowners tried to downsize to smaller homes, though high prices made downsizing difficult, leading some to stay put (“age in place”) instead.
Investment Buyers
Meanwhile, real estate investors were also active during the boom. They particularly targeted entry-level homes (the same ones first-time buyers wanted). This investor activity worsened the shortage of starter houses for regular buyers. Investor demand did ease by late 2022 once interest rates rose, but by then many small homes had already been bought up by landlords and investment firms.
Overall, the average homebuyer in 2021 was quite different from the average buyer a decade earlier. Back in 2010, in the wake of the last housing crash, the typical buyer was likely an Idaho resident – possibly a first-time buyer – taking advantage of low prices and available homes. By 2021, a typical buyer might be a Californian who sold a property elsewhere and moved to Idaho, or a local move-up buyer who already had significant equity. In recent years, fewer young local buyers were able to buy, while older and out-of-state buyers became more common.
Remote Work and the Influx of Newcomers
Perhaps the most defining feature of Idaho’s recent housing market was the influx of newcomers. Idaho was one of the nation’s fastest-growing states (its population grew about 17% from 2010 to 2020), and from 2018 onward it saw a surge of new residents moving in. The Boise area and Coeur d’Alene in north Idaho were prime magnets.
The Pandemic’s Remote Work Revolution
In 2020–2021, the pandemic’s remote work revolution enabled many Californians, Oregonians, and Washingtonians to relocate to Idaho in search of more space and a lower cost of living. By mid-2021, about 73% of people viewing Boise homes on Redfin were from outside Idaho. This flood of transplants – often with home-buying budgets well above local norms – pushed prices up rapidly.
Other parts of the state felt this trend as well. North Idaho became a popular escape for West Coast residents, contributing to Coeur d’Alene’s housing boom. Even smaller cities like Twin Falls and Idaho Falls saw increased interest from remote workers and newcomers (though not to the same extent as Boise). Overall, the demand from out-of-state buyers was a major factor driving Idaho’s high prices and competition during these years.
Impact on Affordability for Locals
The arrival of so many out-of-state buyers had a profound effect on the market. Many of these newcomers were bringing budgets that far exceeded what local Idaho buyers could typically afford. For instance, someone selling a modest home in the San Francisco Bay Area could take their proceeds and buy a large, high-end house outright in Idaho.
These cash-heavy transplants often bid well above asking price on homes. Housing prices exploded as a result, climbing beyond what many long-time Idaho residents could pay. By 2023, Idaho (along with Montana) had even surpassed California as the most unaffordable state for its local homebuyers. This was a dramatic shift – Idaho historically had been considered an affordable refuge, but during this period it became less affordable (relative to local incomes) than California.
It’s important to note that while Idaho’s housing was cheaper than places like California or Seattle, it wasn’t actually cheap for Idahoans. The influx of higher-income buyers drove up home values statewide, and locals found themselves struggling to compete. In Twin Falls County, for example, the surge in prices, heavy competition, and higher interest rates made it one of the nation’s toughest home markets by 2023. One analysis ranked Twin Falls County as the 27th worst homebuying market in the entire country for buyers, due to how quickly costs had jumped beyond local reach. This shows that the affordability crunch extended beyond Boise – it was felt in communities across Idaho.
What Types of Homes Are First-Time Buyers Purchasing?
Throughout 2018–2023, single-family detached houses remained the most popular choice for first-time buyers in Idaho. Owning a house with a yard has long been the classic goal for many families, and that didn’t change. However, with the shortage of homes and high prices, a lot of first-time buyers had to stay flexible about what they would buy.
Alternative Housing Options
Many began to consider attached homes like townhouses and condominiums, as well as manufactured homes, when traditional houses became too expensive.
Attached housing gained ground, especially in Boise and other urban areas. The city of Boise saw a sharp rise in “missing middle” development – duplexes, townhomes, and small apartment buildings meant to provide more affordable options. In 2018, only about 42% of new housing units added in Boise were multi-family or “missing middle” units, but by 2023 that share had jumped to 76%.
In other words, most new homes being built in the city were not stand-alone houses, but apartments or townhome-style units. These kinds of homes are often more affordable for first-time buyers. For example, townhouse communities sprang up offering brand-new homes at lower prices than comparable single-family houses. Many buyers who were priced out of the detached home market were willing to purchase a townhouse or condo as a starter home.
Manufactured Housing’s Growing Appeal
Manufactured homes (mobile homes) provided another path to homeownership. In many parts of Idaho, they were among the few properties available under $250,000. These homes have some extra challenges – for example, owners might pay lot rent in a mobile home park, and loans for manufactured homes can be harder to get – but they did offer an affordable option. Sales of manufactured homes rose during this period because so many buyers were priced out of ordinary houses.
Upsizing vs. Downsizing Trends
Buyers’ choices in home size also varied by life stage. Many younger families upsized, seeking more space or extra rooms – especially after pandemic remote-work trends made a home office desirable. Move-up buyers (those who already owned a starter home and were buying a bigger one) were very active in 2020–21, often leveraging their home equity and low interest rates to afford a larger house.
On the other hand, many older buyers were downsizing. Empty-nesters and retirees often sold their large family homes and looked for a smaller, easier-to-maintain place. For example, an older couple might sell a four-bedroom house and try to buy a two-bedroom townhouse or a single-story cottage. However, downsizing in Idaho’s hot market didn’t always save money – even a much smaller home could carry a high price tag after the boom.
Vacation Home Market
Idaho’s scenic areas saw a spike in vacation home purchases by wealthy out-of-state buyers during this period. High-income families bought lakefront cabins, ski condos, and mountain retreats as second homes, further reducing the housing supply available to local buyers in those regions.
Regional Differences Across Idaho
While the housing boom was felt across the state, different regions of Idaho had unique experiences:
Boise and the Treasure Valley
The Boise metro (which includes Ada County and Canyon County) was the epicenter of Idaho’s growth. Ada County (Boise, Meridian, etc.) saw its median home price rise to around $540,000 by early 2023. As Boise became very expensive, many first-time buyers started looking in outer communities for relief.
Places like Nampa, Caldwell, and Kuna – in neighboring Canyon County or on the outskirts of the metro – became popular alternatives where a given budget could stretch further. In early 2025, the typical home in Canyon County cost over $120,000 less than in Ada County (roughly $416,000 vs. $539,000).
This pattern of “driving until you qualify” emerged during the boom: as prices shot up in Boise, more buyers looked to outlying towns where homes were cheaper. Builders followed suit, putting up new subdivisions in these fringe areas where they could offer slightly lower prices. Despite a slight market cooldown by 2023, Boise’s housing remained competitive. Even in 2023, well-priced homes in Boise could still draw multiple offers (though not as frenzied as in 2021).
Coeur d’Alene and North Idaho
Coeur d’Alene, with its beautiful lake and mountains, experienced a similar surge. Kootenai County’s median home prices jumped into the $500,000+ range. The area became a refuge for people from Seattle, Portland, and California seeking natural beauty and a smaller-city lifestyle. During this period, Coeur d’Alene was even ranked among the hottest housing markets in the nation.
The demand was so strong that inventory could not keep up, leading to bidding wars reminiscent of Boise’s. Rent prices in Coeur d’Alene also shot up, which encouraged more investors to buy homes and convert them into rentals. By 2023, the rapid growth began to level off, but affordability remained a concern. The median home price in Kootenai County was around $525,000 at the end of 2024, and the market was still adjusting to the new normal of higher prices.
Twin Falls and the Magic Valley
Twin Falls (the hub of the Magic Valley in southern Idaho) historically had a lower cost of housing than Boise or Coeur d’Alene. However, it did not escape the statewide trend of rising prices. Home values climbed significantly in the late 2010s and especially during 2020–2021.
By early 2025, the typical home in Twin Falls was selling in the mid-$300,000s – a huge jump from just a few years earlier. Twin Falls was even named one of the nation’s toughest markets for buyers (ranking 27th worst) because prices and competition had grown so intense. First-timers there faced many of the same challenges of higher costs and competition, just on a slightly smaller scale than in Boise.
Eastern Idaho (Idaho Falls and Pocatello)
These areas saw more modest growth. Home prices remained lower than Boise’s, but still climbed notably during 2018–2023. First-time buyers in these cities had slightly better chances thanks to the somewhat lower prices, but they too faced rising costs and limited supply.
In summary, Boise and its suburbs felt the most extreme price increases, causing many buyers to spill into Canyon County and beyond. North Idaho (Coeur d’Alene) also saw big price jumps due to incoming demand, making it far less affordable than before. Twin Falls and other smaller cities experienced the boom on a smaller scale but still had their own affordability crunch. Virtually no part of Idaho was untouched by these trends, though the intensity varied by region.
Comparing to 2008–2017: Then vs. Now
The decade before 2018 looked very different for Idaho homebuyers. After the 2008 housing crash, home prices were low and there were many homes on the market. First-time buyers in 2010–2015 had an easier time – they could find affordable houses and even negotiate on price. Fewer people were moving in from out of state then, so buyers were mostly local families.
A More Accessible Market
Mortgage rates were relatively low (around 4%) and stable, and programs like FHA loans helped many buy with small down payments. There also wasn’t the same bidding-war environment. In fact, buyers were pretty cautious right after the crash, and sellers often had to wait for offers.
By the mid-2010s, Idaho’s housing market had recovered, but it was still much calmer and more affordable than the late 2010s/early 2020s. In summary, a first-time buyer around 2015 faced far less competition and a much lower price tag than a first-time buyer in 2021. The recent boom was a complete contrast: rapid growth, intense demand, and buyers feeling pressure to act fast – a scenario that hardly existed in the earlier years.
Conclusion
From 2018 through 2023, Idaho’s housing landscape was transformed. First-time homebuyers faced soaring prices, fierce competition from out-of-state and older buyers, and the challenge of rising mortgage rates. Many adapted by broadening their search to more distant communities, choosing townhouses or manufactured homes instead of traditional houses, and utilizing every financing tool available to achieve homeownership.
The frenzy of 2020–2021 highlighted how demand can overwhelm supply – Idaho became a magnet for remote workers and retirees, driving affordability to record lows. By 2023, rising interest rates had cooled the market’s temperature slightly, yet the fundamental challenge remained: housing costs have far outpaced incomes, especially in the urban centers.
Looking ahead, Idaho’s leaders are looking for ways to balance growth with affordability. Efforts are underway to build more housing (especially affordable types) and to support first-time buyers with education and financial assistance. The hope is that more of Idaho’s workforce can afford to put down roots and own homes in the communities they serve.
References
-
- Idaho Capital Sun – Since pandemic, Montana, Idaho have surpassed California as most unaffordable states for homebuyers
- Fairway Homeownership Hub – It’s Official: Boise City Is the Worst Kept Secret in Housing
- National Association of Realtors – First-Time Home Buyers Shrink to Historic Low of 24% as Buyer Age Hits Record High
- Bankrate – Mortgage Rate History: 1970s To 2025
- City of Boise – Housing Needs Analysis
