Boise's Investment Market Recap

According to a recent Keller Williams investment real estate report, the multifamily sector led the Boise investment market in sales volume for 2024. This option for real estate investing remains attractive as rental demand stays strong, keeping occupancy rates high and driving up rents.

Boise Investment Market & Rental Trends: A 2024 Overview

The Boise investment market in 2024 saw a slowdown compared to the previous year. Transaction volume dropped 16%, from $574 million in 2023 to $482 million in 2024, marking the lowest levels since 2016. The number of deals also decreased by 5%, with the office sector hit hardest, seeing over a 50% drop in activity. Despite the overall decline, the multifamily sector remained resilient, leading in sales volume with over $162 million in transactions, making up 34% of the market's total.

Strong Rental Demand Persists

Rental demand in Boise remains robust, driving up occupancy rates and rents. The average rent for single-family homes has increased to $2,220, a 10.5% rise from Q3 2023. In the multifamily sector, rents for one-bedroom units surged 13.4%, reaching an average of $1,272. Overall, the average rent in Boise steadily climbed 11.8% over the past year to $1,935 per month.

Rising Rents Across the Board

For single-family homes, rents for three-bedroom properties rose sharply, hitting $2,245 (a 12.4% increase), while four-bedroom homes saw a 14.2% increase to $2,555. Five-bedroom homes experienced significant volatility, with rents climbing 30.5% to $2,995, reflecting limited availability. Multifamily properties also saw considerable rent growth, particularly for three-bedroom apartments, which saw a 21% increase to $1,907.

Low Vacancy Rates Signal Continued Demand

Boise’s rental market continues to show tight conditions, with vacancy rates at 1.62% across all property types, slightly improved from the previous year. Single-family vacancies rose to 2.36%, while multifamily vacancies dropped to a mere 1.09%, highlighting strong demand in the apartment sector.

Looking ahead to 2025, the low vacancy rates and rising rents indicate that the demand for rental properties in Boise remains strong, with no signs of slowing down anytime soon.