The Boise housing shortage is a pressing problem that officials are trying to address. With an increasing population and limited space, city officials and developers have evaluated options, and the clear solution is more infrastructure. This article takes a look at an overview of the housing shortage in Boise.
But, like most things, this takes time and isn’t a quick and easy fix. It could take years to build enough housing for the annual flow of new residents in the city. For those looking to buy during the shortage, custom home building may be the answer.
An Overview of the Housing Shortage in Boise
Boise, Idaho, is currently experiencing a housing shortage, which has been a growing concern for the city’s residents and officials. According to recent research, Boise needs 2,770 units yearly for the next ten years to meet demand.
The demand for housing in Boise has increased rapidly due to the city’s growing population and strong economy. For decades, Boise consistently featured on the top ten lists for family-friendly cities, safest places to live, and affordability indexes. As a result, Boise experienced consistent population growth.
However, following the boom and bust of the 2008 mortgage crisis many Idaho home builders were hesitant about over-building. This meant that despite a reasonable stream of demand, the Boise housing market was consistently operating with a manageable shortage of a 1.5 month supply versus the recommended three months.
Pandemic Boom
When the pandemic began in 2020, Boise’s expanding population exploded. The convenience of work-from-anywhere policies and low mortgage rates brought thousands of buyers to an under-prepared Idaho housing market.
In turn, the few houses that were available on the market were seeing exponential price increases.
At its peak in 2022, Boise faced an under supply of nearly 15,000 homes and a year-over-year price increase of 26%.
Since then the housing supply has not kept up with the new demand, leading to a shortage of affordable housing options for many residents.
For the Boise area, it is hard to separate the effects of the city’s rapid population growth from the housing shortage. Residents are now facing many overcrowding and labor shortages, while the cost of living skyrockets in comparison to average wages. Budgeting is important when it comes to buying a new home, especially given the current status of the housing market. It is important to consider what the costs of building a custom home would be in comparing buying a home versus building a custom home.
The Impact of the Housing Shortage on Potential Buyers
The housing shortage in Boise has created unique challenges for potential home buyers. With limited availability and high demand, the cost of purchasing a home has skyrocketed, leading to bidding wars and making it difficult for buyers to secure a property. Boise buyers frequently have to waive contingencies and input offers above the asking price.
Additionally, the shortage has led to a lack of inventory, leaving many potential buyers with limited options to choose from. Finding something that matches specific needs and budgets is a challenge, if not impossible, due to the few options available. As a result, many people are left struggling to find affordable housing in the city. Because of the lack of housing, many may consider building a custom home. It is important to know what a custom home is and how it is made.
Even with the decline of the rabid pandemic buying period, Boise still has an inventory shortage while prices for existing homes remain intimidating.
Overview of the housing shortage in Boise: The Benefits of Home Building
While Boise’s housing shortage can create a diverse range of complications, for home buyers there are a few viable solutions. One option to consider is building a new, custom home with a reputable builder. Building your own home can be an excellent solution to skirt the housing shortage and get the exact home of your dreams
Benefits of Building Your Own Home
Here are a few of the most notable benefits of building your home during a housing shortage:
- Custom opportunities: The custom opportunities might just be the best part about building a home. If you want a jet tub nestled in your master bath or love the idea of a sprawled deck to watch the sunrise, you can make that happen in your custom home. You get to choose everything, from the big to little details. Learn about custom home building. It is a great way to ensure you can have a home built tailored to your desired taste.
- Choose your location: One of the best parts about building your home, aside from choosing the design, is picking the location. You can select the plot of your dreams. Browse available plots and choose the location that best fits your needs!
- Long-term solution: When you build a custom home, you have the opportunity to create something that will last a lifetime for your family. Create a forever home that suits your needs for now and years to come!
- Combat fickle mortgage rates: When you secure financing for a home that is to be built, your mortgage doesn’t take effect until the home is built. Throughout the construction period, you can look for opportunities to lock in the most favorable available mortgage rate.
- Work with your budget: Unlike purchasing the complete package of an existing home, a custom home includes only what you want to buy. Your money won’t go towards awkward cabinetry you don’t quite love or outdated paint colors. Every dollar will go towards the home you want. This means you can tailor exactly to your budget.
While the Boise area grapples with solutions for the city’s housing shortage, you can create your own solution with a custom-built home.
Avoid the Home Shortage and Build Your Dream Home in Boise With Oakmont
Boise’s housing shortage can be overwhelming, leaving home buyers feeling like there isn’t a good solution. If you want to put down roots, home building might be the perfect answer.
If you’re ready to get started with building your dream home, our expert builders at Oakmont are here to help. We’re proud to be one of the few home builders that makes customization the center of our business. If you have a dream, we can help you create it.
