Is Idaho a good place to buy real estate?

Deciding whether Idaho is a smart place to buy a home requires weighing its soaring real estate market against its unique draws. Here’s a deeper look at the pros, cons, and future outlook.

Why Buy in Idaho? Idaho’s allure is undeniable: breathtaking scenery, from Coeur d’Alene’s lakes to Boise’s foothills, draws outdoor lovers. The state’s low property tax rate (0.63%, fifth-lowest nationally) and no tax on Social Security make it retiree-friendly. A thriving economy, with 2025 job growth of 23% in tech and healthcare (e.g., Micron, St. Luke’s), appeals to professionals. Boise’s median home price, $522,000, is steep but a bargain compared to Seattle ($850,000) or Denver ($650,000). Access to 33 state parks and vast public lands (60% of Idaho) boosts lifestyle appeal. Smaller cities like Meridian offer suburban charm with growing amenities.

The Challenges: Idaho’s market is tough. Home prices have surged 92% since 2017, with Boise’s inventory at a mere 2.7 months’ supply in 2025, fueling fierce competition. Mortgage rates near 6.4% inflate costs, and cash-heavy investors (30% of 2024 sales) often outbid first-timers. Rural areas, while cheaper (e.g., Pocatello’s $350,000 median), lack jobs and inventory. Rapid growth strains roads and schools, especially in Ada County.

Market Trends: Experts forecast 3-5% price growth in 2026, with no major correction due to persistent demand and limited new construction (only 4,800 permits in 2024 vs. 11,000 needed). Rate cuts could ease affordability slightly.

The Verdict: Idaho is a great buy for those valuing natural beauty, low taxes, and long-term growth over short-term savings. First-time buyers may need to explore up-and-coming areas like Caldwell or wait for market stabilization. For investors or lifestyle-driven buyers, Idaho’s unique blend of opportunity and scenery remains compelling.