The value of a typical home in Idaho more than doubled in the past five years—a feat no other state can claim
With low interest rates and a life-altering pandemic that found many trading in their commute for remote work, it’s no secret that the real estate market in 2022 looks a whole lot different than it did five years ago. Those circumstances led many would-be homeowners to broaden their search, looking outside of the cities and suburbs they’d normally consider. And while it’s been apparent for at least a year that these shifts stood to benefit sellers in more rural states, the state to actually see the biggest growth in real estate prices since 2017 may not be the first one that comes to mind.
According to data from Zillow’s Home Value Index, Idaho saw the most significant change in typical home value over the past five years. Based on the real estate platform’s algorithmic “Zestimate” of home values, which uses a wide array of data points beyond sales prices to more comprehensively assess a given market, the value of a typical home in the Gem State jumped from $222,122 in July 2017 to $472,272 in July 2022.
That’s an astonishing increase of just over $250k, which translates to a growth of 112.6%. Idaho’s growth far exceeded not just the rest of the country, at a time when every state saw gains of at least 34%, but even its closest competitors: Second-place Arizona and third-place Utah saw five-year changes of 95.9 and 91.4%, respectively. While Utah’s pure dollar increase of $273,608 outpaced Idaho, it still found a place in the top five alongside Hawaii, California, and Washington, the three most expensive states (excluding Washington, D.C.) in terms of typical home value.
If these Zestimate increases can be considered a proxy for the value of living in a given place, metro-level data suggests that new (and existing) Idahoans enjoy the balance of a relatively urban area within an otherwise largely rural state. Showcasing a 117.8% growth in typical home value from 2017 to 2022, Boise was the only area to exceed Idaho’s state-level increase of 112.6%, with home values rising $276,676 over five years to a price of $511,618 by this July.
Those who relocated to Boise from out of state got good bang for their buck as well: Zillow further notes that these movers typically gained 68 square feet at a price that was about $145,000 less than the value of their prior home. That’s enough extra space for a cozy but viable home office, and a tidy profit with which to redesign or renovate one’s entire space as needed.
Other Idaho areas that gained ground showcased connections to the outdoors. Idaho Falls, Twin Falls, and Pocatello all saw prices increase by more than 100% over five years, with each situated a short distance from the Snake River. Coeur D’Alene, where the Spokane River flows into the town’s eponymous lake, saw property values rise by 109.3%. Hailey, which offers access to Sun Valley at a slightly more affordable rate than the ski town itself, saw comparatively modest but still significant growth of 87.5%. By way of out-of-state comparison, Summit Park, tucked between Salt Lake City and Sundance host Park City, saw prices increase by 108.6% to a typical value of just under $1.47 million.
Between attractive locations, extra space, and the fact that ninth-place Idaho’s typical 2022 home value is closer to that of 15th-place New Hampshire ($436,623) than eighth-place Oregon ($524,718), you have the recipe for real estate demand. “States where home values grew the most over the past five years tend to offer relative affordability, as well as a lifestyle that many are attracted to,” says Zillow senior economist Nicole Bachaud. “Markets that offer year-round outdoor living and easy access to outdoor amenities have been the most in-demand.”
Between a retreat from historically low interest rates (a move that also speaks to the realities of inflationary concerns) and a gradual return to the office, the moment to drop everything and save money by moving to a place like Idaho may be on its way out. Even still, the data goes to show that homeowners might still be able to get more for less, if they’re willing to look for hidden gems.
Read more on Architectural Digest.
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