How California Big Money is Driving Up Idaho Home Prices
It is every Idahoan's worst nightmare that is their reality today. Folks work hard, have a good job, but can't afford a place to live. Price escalations have forced Idahoans to drive further to work or continue paying rent. Rents in our not cheap in Idaho, reports the Wall Street Journal. The publication says that the average rent increase in Boise was 20% last year.
This story is another in our series of the biggest stories of 2022. Home prices in our area have fallen, however interest rates continue to climb.)
Why Our Idaho Home Prices So High?
ABC7 News reported that Californians are not driving up the home prices in Idaho. You can view the report here; you may find it out that they're profiling our state as some experiment. We all know that if California were not a failed nation-state, their people would not be moving to Idaho. Despite their reporting, the evidence is overwhelming that Californians are driving up the home prices in Idaho. I want to thank those who move here for changing their plates to Idaho plates. Some folks do not believe that they are legally required to change plates upon establishing residency in Idaho. Or they can afford a $700,000 house but are too cheap to buy new plates.
Where are they coming from?Three California cities were in the top five places people relocated from to Idaho. The Idaho Press broke down the primary California sources. Topping the list was Los Angeles, followed by Riverside and Sacramento that were the fourth and fifth top cities of folks relocating to the Gem State.
Realtors and mortgage experts say that Californians sell their homes and use their equity to pay for an Idaho home. Cash offers led to many multiple bidding wars during last summer's historic real estate season. Traditional buyers who rely on financing could not compete with California's big money rolling in.
The New York Times documents the price escalation. "According to a recent study by Redfin, the national real estate brokerage, the budget for out-of-town home buyers moving to Boise is 50 percent higher than locals' — $738,000 versus $494,000." Housing in some Idaho towns has become so challenging that the city government considered allowing residents to live in tent cities. You can read our coverage here.
Others now following our lead
Although we joke about building a wall, there appears to be no solution to the continued price hikes, thanks to the folks moving in from California.
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