Boise, Idaho, and specifically Ada County, remained a strong and attractive real estate market in 2024, drawing interest from out-of-state buyers looking for affordability, investment opportunities, and a high quality of life. Let’s take a look at the key trends that shaped the market this past year and what buyers can expect moving into 2025.

Market Growth and Home Prices

Ada County saw an increase in home sales by 11% compared to 2023, signaling strong demand despite rising mortgage rates. The median home price in Ada County reached $540,000, reflecting a modest increase of just under 3% for the year.

In Boise specifically, home values rose 3.1% year-over-year, reaching approximately $483,500. These steady gains indicate a healthy, appreciating market without the extreme spikes seen in previous years.

Inventory and Market Dynamics

One of the biggest stories of 2024 was inventory. While sales increased, available homes for sale declined as many homeowners held onto their properties due to higher interest rates.

• Overall inventory dropped by 16.5% in December, marking the fourth straight month of decline.
• Existing home inventory fell by 28.7%, while new construction inventory only decreased by 4.5%.
• 57% of all available homes at the end of the year were newly built properties.

For buyers, this means that while there are options, existing home sales may be more competitive due to limited availability.

Affordability & Economic Factors

Mortgage rates ended 2024 just below 7%, making affordability a challenge for many buyers. Nationally, the household income required to purchase a starter home hit $70,164—more than double the $32,357 required in 2019. This shift is due to home price increases outpacing income growth over the past five years.

However, Idaho stands out in one key area:

• The state’s median household income grew 15.5% from 2019 to 2023, ranking first in the nation for income growth during that period.
• This income growth helped offset some affordability concerns, but many buyers are still adjusting to higher mortgage payments.

Population Growth & Market Demand

Idaho’s strong economy and lifestyle appeal continue to drive population growth:

• The state’s population surpassed 2 million in 2024 for the first time.
• Idaho grew by 30,497 people in one year, ranking 7th nationally in population growth.

This increase in new residents—many relocating from states like California, Washington, and Oregon—keeps housing demand high, especially in the Boise metro area.

Looking Ahead to 2025

As we enter 2025, here’s what out-of-state buyers should keep in mind:
✔ Interest rates are expected to remain around 7%, potentially slowing price increases.
✔ New construction homes make up a significant portion of inventory, offering more opportunities for buyers open to new builds.
✔ Population growth will continue driving demand, making Boise an attractive long-term investment.

For those considering a move, Boise remains a competitive yet stable market, ideal for buyers looking for a blend of affordability, lifestyle, and investment potential.

Interested in making Boise your home in 2025? Let’s connect and find the right home for you!

*all data from Boise Regional Realtors*