Millennials have stepped off the sidelines and into Idaho’s housing market, and the ripple effects are hard to miss. Between 2018 and 2023, a mix of economic opportunity, remote work freedom, and lifestyle rethinking brought a wave of first-time buyers into both cities and scenic small towns. Many chose starter homes in fast-growing suburbs; others chased affordability and space farther out. But with rising prices and tight inventory, this generation has had to make trade-offs—balancing dream-home ideals with a changing market reality.

Millennials Drive Idaho’s Housing Market

By the early 2020s, millennials had become the majority of homebuyers in Idaho. In 2023, about 53% of home purchase loans in Idaho were taken out by millennial-aged buyers (approximately ages 25–44), one of the highest shares in the nation. This is a striking change from a decade prior, when millennials were younger and a much smaller part of the market.

Roughly 60% of homes sold in Idaho in the past few years have been to buyers under age 45, reflecting how this generation is now the engine of the housing market.

Many of these millennial buyers in Idaho are first-time homeowners, though older millennials are often repeat buyers. National data shows 70% of younger millennials (in their 20s–30s) and 46% of older millennials (30s–40s) were first-time homebuyers as of 2022. In Idaho, millennials span from their late 20s to early 40s during 2018–2023 – meaning some were buying their very first starter homes, while others were moving up to second homes as their families grew.

Popular Property Types

Traditional Single-Family Homes

Despite changing market conditions, traditional single-family houses remained the most sought-after property type for Idaho millennial buyers. Most millennials prefer the space and yard of a detached house if they can afford it. For households earning under $250K (which includes the vast majority of Idaho millennial families), single-family homes were the top choice in 2018–2023. Many first-time buyers aimed for modest starter houses, while those with young children often sought homes with extra bedrooms and a backyard.

The Rise of Alternative Housing

Soaring prices and limited inventory forced millennials to be flexible in some cases. In Boise and other cities, there was a sharp rise in townhouses, condos, and duplexes – the “missing middle” housing – to meet demand. For example, in Boise 76% of new housing units in 2023 were multi-family or attached homes, up from just 42% in 2018.

Developers built more townhome communities and small condo projects aimed at entry-level buyers. Many millennial buyers embraced these options when priced out of single-family houses. A townhouse or condo often served as an affordable starter home close to city jobs.

Vacation Homes and Investment Properties

Another notable trend was a spike in vacation-home and investment property purchases during the pandemic boom. Idaho’s scenic attractions – from lakes and mountains to ski resorts – drew interest from both locals and out-of-state millennials looking for second homes.

In 2020–2021, low interest rates and remote work led to more buyers snapping up vacation properties like lakefront cabins in northern Idaho, ski condos in Sun Valley, and mountain cottages. High-income millennials (often those able to work remotely from anywhere) were part of this wave.

Real estate analysts noted a “sea change” in buyer behavior, as demand for second homes spread to new markets like Boise that hadn’t traditionally been vacation hubs. This boom created a “new wave of second-home markets” in places with moderate prices and great outdoor amenities. By 2022–2023, as interest rates rose, this second-home frenzy cooled off, but it was a striking trend while it lasted.

Housing Transitions: Upsizing and Second Homes

The Upsizing Trend

Upsizing was a common theme among older millennial homeowners in Idaho. As many millennials reached their 30s and early 40s during 2018–2023, they often found their starter homes becoming too small – especially after getting married or having children. Nationwide, nearly 32% of older millennial sellers said their reason for selling was that their previous home was “too small”.

In Idaho, younger families upsized to gain more square footage or extra rooms, a trend amplified by the pandemic when a home office or backyard became more desirable. In 2020–2021, move-up buyers were very active – many millennials leveraged the equity from their first homes (which had appreciated significantly) and took advantage of low 3% interest rates to “trade up” to larger houses.

Downsizing Less Common

Downsizing was less common for millennials, since they are generally in a life stage of growth rather than consolidation. Downsizing – selling a larger home to move into a smaller one – was mostly seen among Baby Boomers and empty-nesters in Idaho. Some older homeowners sold big houses to cash out at high prices and sought smaller, single-level homes or condos. But millennials, who were younger, were usually on the buying end of those transactions.

A few millennials did make strategic “downsizing” moves in terms of finances: for instance, an Idaho millennial who owned an expensive home might sell and relocate to a cheaper area to reduce costs. But broadly, millennial trends skewed toward upsizing or moving to more affordable locales rather than true downsizing of home size.

The Second Home Phenomenon

Buying second homes became a notable trend for a subset of Idaho’s millennials during the pandemic. 2020–2021 saw some millennial buyers purchase second homes or cabins in Idaho’s vacation spots. Remote work arrangements allowed affluent young professionals to work from a lake house or mountain cabin part of the time.

For example, a tech worker in his 30s from California could buy a cabin retreat in Coeur d’Alene while still renting in San Francisco – a flip of the traditional idea of a “starter home”. Idaho’s relative affordability (at least compared to West Coast cities) made it attractive for these second-home investments. However, this trend cooled once interest rates climbed and offices called workers back.

Remote Work and Pandemic-Driven Migration

The COVID-19 pandemic profoundly influenced Idaho’s housing market, largely through a remote work “Great Migration”. Beginning in 2020, many workers who could do their jobs from anywhere started relocating from high-cost urban areas to more affordable regions – and Idaho was a prime destination.

Nationwide, a record 30.7% of home searchers looked to move to a different metro area in early 2021, up from about 26% pre-pandemic. Boise became one of the hottest landing spots for these movers. Redfin data show that in January 2021, the number of out-of-town homebuyers searching in Boise had more than doubled from a year before.

Many of these newcomers were millennials in their late 20s to 40s leaving expensive coastal cities for Idaho’s lower prices and quality of life. They came from places like Los Angeles, the Bay Area, and Seattle, and were drawn to Boise’s relative affordability and space.

Impact on Housing Demand

This pandemic-driven influx pumped up housing demand across Idaho. Boise led the way, but other communities like Coeur d’Alene and rural resort towns also saw population jumps. In fact, Idaho’s population grew by 6.2% between 2020 and 2023 – one of the fastest growth rates in the nation.

Remote workers newly free of office ties chose Idaho for its outdoor recreation, small-city feel, and cheaper real estate (at least compared to California or Washington). Many of these newcomers were millennials, often with families, seeking a safer, less dense environment during COVID. They competed with local Idaho millennials for the limited supply of homes, contributing to bidding wars and rapid price gains.

Changing Settlement Patterns

Remote work also affected where Idaho millennials themselves chose to live. Some young professionals in Boise realized they could keep their jobs but live further out, where housing was cheaper. For example, buyers moved from Boise to outlying towns like Mountain Home (a smaller community about 45 minutes away) to get more house for the money.

Others left dense city neighborhoods for more suburban areas since daily commuting was no longer required. With companies allowing flexible or permanent work-from-home arrangements, millennial buyers could prioritize affordability and space over proximity to an office. This led to a “reshuffling” within Idaho – the Boise metro continued to grow, but surrounding counties and smaller cities saw a spillover of millennial buyers.

Urban vs. Rural: Where Millennials Settled

Idaho offers a mix of urban hubs and rural charm, and millennials showed interest in both. The Boise metropolitan area (Ada and Canyon counties) remained the center of action, with by far the most sales and new construction. Boise, Meridian, Nampa, and Caldwell – the cities in the Treasure Valley – attracted millennials for their jobs, amenities, and communities. However, the explosive growth in Boise’s prices during 2018–2023 did push some buyers to consider smaller cities and rural towns.

Boise Metro Area Boom

Boise and its suburbs saw skyrocketing demand. The population of Ada County swelled, and home prices followed suit. Boise’s median sale price was around the mid-$200,000s in 2018, but by mid-2021 it had exploded to nearly $500,000 – a doubling in just three years, including a 37% jump in one year alone.

This rapid rise made Boise one of the least affordable metros relative to local incomes. Still, millennials continued to buy in Boise, often stretching their budgets or using creative strategies (such as smaller homes or co-buying with roommates). The Boise area’s strong job market in tech, healthcare, and education kept drawing young professionals.

Northern Idaho Growth

In the northern part of the state, the Coeur d’Alene area also boomed. Kootenai County (home to Coeur d’Alene) became a popular spot for both relocating remote workers and local millennials. The area offers a smaller-city vibe with access to Coeur d’Alene Lake and outdoor recreation.

Home prices there surged as well – the median single-family home price in Kootenai County hit about $530,000 by mid-2024, up from the low-$300,000s in 2018. That nearly 70% increase shows how even outside Boise, Idaho’s attractive towns saw big price appreciation. Millennials looking in Coeur d’Alene had to compete with retirees and second-home buyers from out of state, which drove up costs.

Smaller Cities and Rural Areas

Millennials didn’t ignore Idaho’s smaller cities either. Places like Twin Falls, Idaho Falls, Pocatello, Lewiston, and the Boise-adjacent city of Twin Falls each have their own economies and appeal. Twin Falls, for instance, experienced enough demand to be labeled one of the nation’s toughest home-buying markets in 2023 (ranked 27th most difficult) due to a combination of high prices, stiff competition, and rising interest rates.

A minority of millennials also went for a truly rural lifestyle, opting for homes in Idaho’s small towns and countryside. Some were locals staying in the farming communities where they grew up; others were urban transplants seeking land and solitude. Idaho’s rural counties offered far lower prices – for example, Shoshone County in the Silver Valley had a median home price around $289,000 in 2024, which, while nearly double its pre-2018 level, was still half the price of Boise.

USDA rural home loans (which allow zero down payment) were heavily used by buyers in these areas. This program helped many millennial families purchase homes in outlying parts of Idaho, since much of the state qualifies as “rural” for financing purposes. The trade-off for lower prices in remote areas was longer drives to jobs and amenities – though with telecommuting, even that became less of an issue for some.

Affordability Challenges and Market Evolution

Perhaps the biggest story of 2018–2023 was the soaring cost of housing in Idaho and how millennial buyers struggled to keep up. Idaho went from being relatively affordable to being one of the least affordable states for homebuyers, as home prices far outpaced incomes. This created serious challenges for millennials, many of whom were first-time buyers without existing home equity.

The Price Explosion

Idaho experienced an extraordinary home price boom. Since 2018, the state frequently ranked among the top in the nation for price appreciation. Statewide, the Zillow Home Value Index roughly doubled from the low-$200,000s in 2018 to the mid-$400,000s by 2023.

The median listing price of a single-family home in Idaho was about $260,000 in 2016, roughly equal to the national median at that time. By 2023, Idaho’s median listing price had blown past $580,000, more than 32% higher than the U.S. median. In Boise, the run-up was even sharper – reaching over $500k by 2021.

Income vs. Housing Costs

While home prices were rising by leaps and bounds, household incomes crept up only modestly. In 2018, Idaho’s median household income was in the mid-$60,000s; by 2023 it had risen to around $74,000. That’s roughly a 15% increase in income, versus roughly a 75–100% increase in home prices over a similar span.

One analysis found that from 2015 to 2020, Idaho housing values jumped ~75% while median income rose only ~18%. By 2023, the median home price was roughly 6 times the median household income in Idaho. Historically, a ratio of 3 or 4 to 1 is considered affordable, so 6:1 indicates extreme unaffordability.

Idaho (along with Montana) overtook even California by 2023 as one of the least affordable states when comparing local incomes to home prices. This may sound surprising – California’s homes are still more expensive in absolute terms – but Idaho’s incomes are much lower, so the burden on local buyers became comparatively worse.

Declining Affordability Metrics

The National Association of Realtors’ affordability index dropped to about 0.4 in Idaho by 2023 (on a scale where 1.0 means a median income can afford a median-priced home). An index of 0.4 places Idaho among the bottom five states for housing affordability.

Another metric, the Housing Opportunity Index (HOI) from the National Association of Home Builders, showed that by mid-2021 only 21% of homes for sale in Boise were affordable to a household earning the area’s median income (around $75,000). This HOI of 21% put Boise in the bottom ten metros nationwide in affordability at that time. Boise’s median price (~$535K in 2021) had reached nearly 10× the median income, an unheard-of ratio for the region historically.

Creative Solutions to Affordability Challenges

One prominent strategy among younger buyers was “communal homebuying.” Faced with $500,000 starter homes, some Idaho millennials decided to pool resources with friends or family to purchase a house together. In recent years, millennials and Gen Z have led a rise in co-buying – for example, unmarried couples or even two friends co-signing a mortgage.

A 2025 report notes that nearly 19% of younger millennials and 20% of older millennials purchased homes as unmarried couples, a significant increase from prior years. And looking at a broader definition of co-buying, the number of home purchases by unrelated individuals with different last names increased 771% from 2014 to 2021.

Local developers even began designing homes for multi-family occupancy, anticipating more buyers would team up. By sharing the down payment and monthly costs, millennial friends or siblings have been able to afford houses that none could manage on their own.

Another way millennials coped was by using low-down-payment loan programs. Many first-timers relied on FHA loans (3.5% down) or USDA rural loans (0% down in eligible areas). These programs were vital for those without huge savings. In the heated 2020–2021 market, though, buyers with FHA loans often struggled, as sellers favored cash or conventional offers.

Comparison with 2008–2017: Then vs. Now

The recent trends mark a big change from the previous decade. Between 2008 and 2017, Idaho’s housing market and millennial buyers faced very different circumstances:

Recovery from the Great Recession

The 2008 housing crash hit Idaho hard, leading to a slump in home prices and construction. Many older millennials (born in the 1980s) were just starting their careers around the recession and found it difficult to buy homes. Banks had tightened lending, and some millennials were dealing with job losses or stagnant wages.

During 2008–2012, Idaho home prices bottomed out and then slowly began recovering. New home construction was extremely low for years. In fact, from 2010 to 2020, Idaho added far fewer homes than needed for its growing population. Housing permits stayed depressed until the late 2010s. This under-building set the stage for the supply crunch later on.

Lower Home Prices in Previous Decade

In the 2008–2017 period, home prices in Idaho were relatively low. Coming out of the recession, one could find extremely affordable properties in Idaho. The median home price around 2011–2012 in Boise was roughly $150,000–$180,000, and statewide medians were not far off that. Even by 2016, the median listing price was about $260,000. This means a millennial who managed to buy around 2015 locked in a much lower price and likely has seen their home equity surge.

Changing Millennial Buying Patterns

During the early 2010s, millennials were in their late teens to early 30s, and many postponed homeownership. Census data show millennials had lower homeownership rates than previous generations at the same age. High student loan debts, later marriage ages, and the aftermath of the recession contributed to this.

It wasn’t until the economy improved in the mid-2010s that millennial homebuying picked up momentum. By 2014, millennials became the largest group of U.S. home buyers, and their participation grew each year. In Idaho, homeownership among young adults started climbing as well. But compared to 2018–2023, the pace was slower and steadier. There wasn’t the frenzied market of bidding wars in 2010s like we saw in 2020–2021.

Population Growth Trends

Idaho’s population grew about 17% from 2010 to 2020, making it one of the fastest-growing states even before the pandemic. Much of that growth was in-migration of young families seeking lower costs. So even pre-2018, Idaho was attracting millennials – but the difference is that back then housing was relatively plentiful and cheap. Fast-forward to 2018–2023, and the same growth accelerated while housing became scarce and expensive.

Conclusion: Millennial Achievement Despite Challenges

Despite the hurdles, millennials in Idaho have shown determination. By 2022, just over half of all U.S. millennials had become homeowners (51.4%) – the first time a majority of that generation owned homes. In Idaho, given the high ownership rates in places like Boise (over 71% of millennials in the Boise metro own homes), the share is likely even higher.

As we move past the craziness of the pandemic housing boom, more millennials are finally settling into homes, whether through upsizing, moving to a cheaper town, or teaming up to buy. The last five years have been a rollercoaster for Idaho’s housing market, and millennials have been at the center of it – adapting and persevering to make homeownership a reality in the Gem State.

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