Boise is well-equipped with the best health, recreational, and educational facilities that people look for when choosing a place to settle down. Its beautiful outdoors and top of the line schools offer an excellent living package to families. With many people wanting to move to a city that promises employment without having to sacrifice on family life, Boise has become the ideal relocation spot. A very high quality of life, coupled with low taxes makes this city even more desirable. With the demand for housing on a steady rise, the real estate market is reliable, and more importantly, promises excellent returns on investment.
Here are some of the major reasons an investment in the Boise real estate market could be beneficial:
Flourishing Job Market
Boise is one of the few US cities with the lowest unemployment rate. With a flourishing job market, the unemployment rate here stands at just 3.5%. It is expected to even go lower in the coming years. The major companies that provide employment here include Hewlett-Packard and Simplot. However, the city’s largest private sector employer is the renowned Micron Technology. This underscores how vital the high-tech industry is to the city.
The many lumbering and food processing companies are also a great attraction to people who come to this city in search of employment. Being the capital of Idaho, the state government also provides ample employment opportunities to residents, thus further strengthening the job market.
While the wages offered by many employers in Boise are slightly lower than many US cities, the cost of living here is low enough to compensate for it. Furthermore, the average wage in the city is a dollar higher than the state average. Coupled with a relatively low cost of living, this makes the city a top priority for many people to settle in, build a career, and raise a family.
In 2008, Boise was ranked second in the Forbes list of best places for business and careers. With such great employment prospects along with a high quality of life, countless people from the expensive US cities are looking to move here, thus greatly increasing the demand for residential as well as commercial properties in the area.
Abundance of Students
The standard of education in Boise matches that of many top US cities. The city is home to Boise State University, The College of Idaho, Boise Biblical College, and Northwest Nazarene University. Each of these educational institutes has attained world-wide recognition, causing students from around the world to flock to Boise to get an education.
Other than this, the city is also a highly-ranked school district. This is a big attraction to many families all over the country. These factors significantly increase the demand for residential properties in Boise, thus adding great value to the real estate market of the city.
Compared to the US West Coast, the taxes in Boise are considerably low. The progressive income tax goes to a maximum of 7.4%, and sales tax is around 6% in the city. On properties, the average tax rate is just 1%, compared to the national average of 1.2%. With housing being relatively affordable, this 1% comes down to an average property tax of $2300, whereas the national average is $3000. In the expensive metro cities like New Jersey and New York, it could even go up to $10,000. The low tax rates here contribute to the already low cost of living, another major attraction to prospective residents and real estate investors.
Good Rental Market
While the city of Boise offers a metro-city lifestyle, the wages offered are somewhat lower than other big cities. For this reason, many people opt to live in rental housing. This trend means buying a property here, and then renting it out can bring you good returns.
At an average of $1,410, Boise rents have shown an increase of 5% in the past calendar year and 23.4% in the past three years. A low vacancy rate of 1.55%, considerably lower than 2.63% from last year, is also a perfect sign of things to come. The demand for rental apartments has been at a constant rise, making rental income a reasonable option for real estate investors.
Steadily Increasing Property Prices
Within the span of 5 years (from 2014 to 2019), the median single-family home price in Boise rose by an astounding 75%, going from $172,900 to $303,100. Furthermore, statistics show that from 2012 to 2020, real estate prices have increased by 123% in the city. These numbers clearly indicate a steady rise in property prices in the future. A further increase of 8.1% is expected this year alone. Having already talked about the rental prospects in Boise, these facts and figures show that buying and selling properties in Boise can also bring you a decent return on investment.
Plenty of Affordable Areas
Boise is a city with a relatively low cost of living. In fact, the average living cost here is 8% below the national average. Amenities like transport, education, and healthcare are more affordable in Boise than many other US cities. While it has already been established that property prices in Boise are on the rise, there is no shortage of affordable areas in the city that offer excellent value for money in terms of real estate. These include areas like Borah, West Valley, and West Bench.
Quality of Life
Boise is known for its high standard of living and quality of life. In 2014, Time Magazine listed Boise as the #1 city that was “getting it right” in the US. Being both a commercial center as well as a “City of Trees,” as many people call it, the city offers its residents the perfect balance between natural beauty and economic prospects. The added benefits of excellent security and affordability make Boise the complete package, adding significant value to properties in this city.