Hot seems to be the theme as we transition from July to August!
As we approach the promise of Augusts’ sultry heat, far from most people’s minds is moving. June is the month when most parents would choose to move if necessity demands it. A move in June allows time for their children to settle in before school starts and to give themselves several months to get situated before the rush, hustle and intensity of the last quarter business season is upon them, and the holidays start stacking up. August, with average daytime temperatures in the high 80’s, is the month one might epitomize as the “lazy days of summer”; floating the Boise River, camping trips to the cooler surrounding mountains, perhaps relaxing in a hammock in the backyard with a beer and a good book. However, for those families still trying to get situated before school starts, this coming month will demand highly focused activity while they pack, move, and unpack under a deadline during a season that can bring us some of the hottest days of the year. Moving is never a pleasant undertaking, least of all in high temperatures typical of August in South West Idaho.
Whitewater Park, Boise
For those of us in the property management business summer months are good months to turn over rentals. Boise’s hot dry heat is beneficial to speeding up drying cycles for carpet cleaning, re-painting interiors and identifying standing water from overly prolific irrigation, and the weather is usually cooperative for exterior repairs.
Rental vacancy statistics are just in for the second quarter of 2015. Lets’ take a look: Compiled from information received from members of South West Idaho’s National Association of Residential Property Managers we see vacancy rates moved up almost a full percent to 3.9% for the 2nd quarter of 2015. This is an increase of .9% from last quarter. The largest increase in vacancy rates from last quarter was multi-family homes in Canyon County and single family homes in Ada County. Nevertheless, the increase was in both multi-family and single family in both Ada and Canyon County.
Rental rates in Ada County increased slightly for single family homes, with an average of $9. There was an overall decrease of $31 in rental rates for multi-family homes, in Ada County. On the average Ada County showed an $11 increase in rental rates over last quarter.
Rental rates in Canyon County showed an average decrease of $38. There was a decrease in rental rates in Canyon County for both multi-family homes and single family.
Both Ada and Canyon County were affected by the vacancy increases for the 2nd Quarter of 2015. Although both counties were affected by the vacancy increase, Ada County had the higher increase in vacancy rates by a full 1% over last quarter.
Currently the trend is showing multi-family and single family vacancy is continuing to rise, in both Ada and Canyon County. Furthermore, rental rates are starting to decrease in both counties.
In our office the past couple of months we have experienced an average 14-day vacancy while searching, screening and placing suitable tenants. Rental rates have remained strong only showing resistance at around the $1,700 level for larger homes located on the outskirts of city limits. In general, we would classify the rental market as “hot”!
In the past 42 years the longest run of hottest temperatures in July were a four year stretch from 1988 through 1991 recording an average high temperature of 91.425F. Will the last four years beat this record? So far the average high for the past 3 years in July is 91.86F. With a weeklong triple digit hot spell in July of this year, I don’t doubt that we’ll beat the prior record. What do you think?