What Does Boise’s Growth Mean to Landlords?
It’s not exactly a secret that the Boise Metro area is growing, and growing fast. But I thought I would take a look at data from various sources to give you a feel for what this means for landlords.
First off let’s take a look at the difference between vacancy rates and rents between Q2-2017 and Q2-2018. The data I am drawing from includes both single family rentals and multi-family rentals of 15 units or less.
Vacancy rates as of end of Q2-2018 as compared to same period a year ago were 1.31% lower for Ada Co. and 1.91% lower for Canyon Co. with the greatest drop in vacancy rate being single family rentals in Canyon Co.
Given the low vacancy rate, rents naturally have risen. Overall average rents in Ada Co. as of Q2-2018 showed an increase of 15% from prior year. Overall average rents in Canyon Co. as of Q2-2018 showed an increase of 13% from prior year. Single family homes in Ada Co. showed the largest individual category increase in rents. Another notable item is that there has been an increase in inventory of 5-bedroom homes in Ada Co. with an average rent rate of $2,007 in Q2-2018.
So what’s driving this trend? Many factors of course, but one significant factor is the continuing growth of the Boise Metro area. For period 2016/2017 Boise was the second fastest growing metro area over the past year and the fastest growing metro area outside of Florida. In the one year period 2016/2017 Boise Metro net migration was close to fifteen thousand resulting in an active labor force of 354,400 a more than 1% higher labor force participation rate than the US average. A representative from the Boise Valley Economic Partnership anticipates an upwards spike in net migration in period 2017/2018 and observes that economic activity appears to still be accelerating. Net migration figures do include college students. However, it is interesting to note that Boise benefits from a 58% graduate retention rate which is particularly pertinent to rental housing demand. Across the board, average wages are below US average in all occupations, with the legal field earning 26% less than US average to farming and fishing being only 1% less than US average. Wages will definitely be a downward pressure on continuing raising rents, and may contribute to some leveling off. Twenty to thirty-four year-olds, who account for a majority of the tenant population in RMA’s homes under management are 20.2% of the total Boise Metro area population. Overall, BVEP states that Boise’s rapid growth, both from in-migration and retention, can be attributed to the draw of recreational and cultural amenities occurring simultaneously with the economic pull of strong jobs.
Pre-Scheduled Optional Services Schedule:
Upcoming Fall Services
- Crawl Space and Attic Inspections
- Gutter cleaning
- Fall landcape clean-up
- Fall lawn care
- Hot water heater service
If you wish to elect to have one of more of these servcies for your property, and have not already submitted the Optional Services Survey form, please contact Spencer Henderson: email@example.com
Vendor billings for pre-elected optional maintenance items received prior to closing our books on the 25th, will be billed in October’s statement. Any billings received after the 25th of the month will appear in your November statement.
If you ever have questions about your statement, please contact Karen@rentalsinboise.com.
Our October Tenant Newsletter talks about home sharing and the unique challenges of roommate applications.
Our business feature is on Tasso. Boise’s newest lunch hotspot is serving up fresh flavors to the Downtown area. Tasso maintains a casual, yet refined feel. Dan Carruthers can be found cheerfully greeting customers through the kitchen window as he busily works his sandwich magic.
Employee Spotlight – Karen Hill
By AJ Black
Karen Hill, our spotlight employee for this month, has been working with us here at Realty Management Associates for 11 years. She handles our administration, bookkeeping and accounting tasks. Good job she does too, as no one hates messy filing more than she.
Karen is a born and raised Idahoan, spending her youth growing up in Garden Valley and Horseshoe Bend. As a child she dreamed of continuing her rural lifestyle as a farmer’s wife, with lots of kids. However, by the end of high school she was ready for a change and moved to Boise shortly after graduation, and boy are we glad she did! On a casual evening after a long day at work, she is happiest relaxing at home with some TV, or maybe a good book. After a day of organization and intense focus, it’s nice to wind down. When she isn’t keeping the office under control, Karen busies herself with a number of different hobbies. The woman with a secret green thumb- many may not know that Karen is an avid gardener and loves spending pleasant days puttering in her yard. On a Sunday morning She can be found on a golf course enjoying the sunshine with her closest friends. The day may carry into evening– where Karen and here buddies will relax and enjoy a refreshing round of vodka cranberries. Part of Karen’s childhood fantasy did come true, as she has been blessed with two children and now seven grandchildren! As a mother, grandmother, and valued member of our team here at RMA she is a much-loved member of our community.
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!