Rising Rents: A Case for Owning a Home in Boise, Idaho in 2023

Renting a home in Boise, Idaho is becoming increasingly expensive, with rental prices on the rise. As a result, many people are considering homeownership as an alternative. Not only does owning a home provide a sense of stability and security, but it also offers financial benefits in the long run. In this blog, we'll explore the current state of the rental market in Boise, and why homeownership may be a more cost-effective option in the long run.

Renting vs. Buying in Boise, ID

The Current Rental Market in Boise, Idaho

As of January 2023 according to Rent.com, residents of Boise, Idaho can expect to pay an average rental rate of $1,755 for a two-bedroom residence. Additionally, more than one-third (33%) of rentals are priced at over $2,100 per month. According to Realtor.com, the rents are forecasted to increase by 6.3%.

Home Mortgages in Boise, Idaho in 2023

In recent months, the median cost for a starter home consisting of 2,000 sq feet or less in Ada County has been $410,000. Despite increased interest rates, this equates to an estimated mortgage payment of between $1,730 -$2,100 per month on a 30-year fixed conventional loan.

While renting may seem comparable or cheaper than buying in the short term, it's important to think long-term when considering renting vs. owning in a competitive rental market like Boise.

Long-Term Financial Benefits of Homeownership

What are the benefits of buying a home? For starters, paying a mortgage each month can provide stability for both the homeowner and their finances. With renting, tenants are subject to fluctuations in rents and could find themselves with steeply increasing rental payments from one year to another.

Additionally, homeowners often have the ability to build equity over time which can eventually be used as collateral for loans or investments.

Buying a home in Boise, Idaho is also a smart financial move because of the tax advantages associated with owning a home. The federal government offers homeowners mortgage interest deductions which can significantly reduce an individual’s income tax liability. Depending on the size of a loan, the mortgage interest deductions can save a homeowner thousands of dollars every year.

In the event that your landlord chooses to sell their property, you may be required to secure alternative housing. Unfortunately, this process could be stressful and there is no assurance of finding comparable housing at your previous rental rates.

The Impact of Rising Boise Rents on Affordability

Renting in Boise, Idaho has been a challenge for many people over the last few years. With rents increasing exponentially due to high demand and limited availability of rental housing, renting is becoming increasingly expensive. Many prospective renters are now looking to buy a home as an alternative option due to the financial benefits we mentioned above.

However, this presents a challenge for those who do not qualify for a home loan and are forced to rent. If someone is struggling to get approved for a mortgage due to their credit, there are ways to Improve Your Credit so you can be in a financial position to qualify in the future. For those who may not be able to afford a home due to their income circumstances, there are some income-based apartments and housing choices to consider. However, these accommodations are scarce and the demand is high. Consequently, this has resulted in a lengthy waiting list for these services. The City of Boise is currently trying to implement more affordable housing options to help with this rental crisis through programs like LEAP Housing and NeighborWorks Boise.

Bottom Line

At the end of the day, purchasing a home in Boise, Idaho instead of renting is definitely worth considering for 2023. If you're drawn to making such an investment, we offer professional real estate agents who would love to assist with each step of this journey.

Concerned about the interest rates? Here are 5 Creative Ways to Get a Lower Interest Rate.

Ready to Stop Renting? Contact us!

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