State of the Economy and Housing Markets
By Athena Savoglou
One look at statistics shows that the economy of Idaho and the greater Boise area (Ada and Canyon counties) is on the up and up. Research statisticians use indicators like population growth, personal income, job market, home sales, and vacancy rates to gauge how a region is doing economically. The good news for us? Housing is booming.
Demographically, Boise’s population is growing rapidly. According to researchers at the Boise Valley Economic Partnership (BVEP), Boise’s population grew 1.9% in the last year, while the nation saw only a 0.8% growth. Additionally, Boise is a young city, as the highest percentage of people are under 18 years of age, which bodes well for our economic future.
Economically, our region is seeing significant progression as well. In the last year, Idaho saw top-ten personal income growth in the country. Employment growth in Idaho is also above the national average, while unemployment is below the national average. Employment rate in our state has increased 2.5%, versus the country’s 1.7%, while the unemployment rate is 2.9%, versus the nation’s 3.8%. Ada County specifically saw a 6.2% increase in job growth.
Although population statistics and the job market favor the greater Boise area, housing is really where the region shines. According to Boise Regional Realtors, median sales price, inventory and number of home sales have all increased in the area. Ada county homes sold at an average of $331,990, which was a 12.5% increase from last year, and higher than both Idaho home sales (avg. $260,800) and U.S. home sales (avg. $226,300). Additionally, an increase in the number of home sales and inventory means that the real estate and construction industries are also flourishing.
Thankfully, with an increase in sale price, also come rent hikes across the board. Overall rent rates per square foot for 1BR, 2BR, and 3BR units have all increased year over year. Older 1BR and 2BR rentals, increased $25-50 since last year, while rentals in newer, full amenity projects increased $50-$150 on average. For landlords – this is all good stuff!
Finally, vacancies are down, which is always a good thing. Homeowner vacancy in Boise is at 1.3%, as compared with 1.8% across the state and 1.7% nationwide. Also, rental vacancy in Boise came in at 3.0%, as compared to 5.3% in Idaho and 6.1% nationwide. Ada County has 3.12% vacancy, and Canyon County has 3.47%, both also well below the national stat. This shows that people are buying and renting in the greater Boise area, which evidences the correlation between personal economics and the housing market.
In a nutshell, Boise is the place to buy investment properties!
(The maintenance updates only apply to those of you who have pre-ordered these preventative maintenance services. If you didn’t opt in for a service you read about in this newsletter, and would like to schedule a service, just email Spencer@rentalsinboise.com to let him know.)
Sprinkler Turn-ons, and HVAC services have been completed.
In June we are scheduling:
Crawl Space/Attic/Roof inspections
Dryer Vent Cleaning
Hot Water Heater Service
Coming up later in the summer: Power Washing
There are no special accounting events this month.
Vendor billings for pre-elected optional maintenance items received prior to closing our books on the 25th of June, will be billed in June’s statement. Any billings received after the 25th of the month will appear in your July statement.
If you ever have questions about your statement, please contact Karen@rentalsinboise.com.
This month’s tenant newsletter features Clean Disposal Practices, including resources and community initiatives in the greater Boise area.
To encourage tenants to read our newsletter so that they keep informed of reminders and general maintenance updates, RMA has incorporated a puzzle into the newsletter for which a prize will be awarded each month. We have seen an amazingly successful 30% increase in readership! This month, we feature another crossword puzzle, the clues for which are buried in our Reminders sections as well as the feature article.
Check out our tenant newsletter this month: June 2019 Tenant Newsletter
Vendor Spotlight – Jens Jensen, PG Long
By AJ Black
Realty Management Associates is pleased to feature Jens Jensen, of PG Long Floor Covering as our Vendor Spotlight for the month of June. Jens started his professional journey early, discovering through an apprenticeship in his teens that he enjoyed working with his hands and being part of a team. He emphasizes that the success of any operation is a direct result of how well everyone involved is working together. Because of this, he strives to be the kind of player that never lets the team down.
Jens tells us that the best part about his work is that it is always changing— new clients, and new tasks to complete each day keep him interested and on his toes. Perhaps it is this inherent attraction to excitement that fostered his love of motorcycles, and spending time in the wilderness. When Jens isn’t working he enjoys all things auto. He spends much of his free time in his garage tinkering, or in the mountains riding motorcycles, UTV’s, snowmobiles… you name it!
Once all the adrenaline is out of his system, Jens likes to kick back with a cold beer, and read. He makes a point to read something in print at least once a day, to keep his mind busy and to get away from electronic stimuli. He studies the things he’s passionate about: floor covering, and all things motocross. He is an ardent supporter of St. Jude’s Children’s Research Hospital.
With a name like Jens Jensen, it is not surprising to learn that his heritage is originally rooted in the northwest corner of Europe. Jens hopes to someday journey to his grandfather’s home-country of Denmark. We have no doubt that his adventurous spirit will soon take him there. RMA thanks you for everything you do!
What Are You Interested In?
This newsletter is intended as a resource and communication platform for you. If there is a topic, relevant to the management of your investment property, that you would like me to write on, please let me know!