Rental prices dropped across the country last month — but nowhere faster than in Boise
A six-month streak “in which rents were rising uninterrupted” in nearly every large city in the country was broken in October, a new report says. Apartment rental prices fell in 22 of the 100 largest cities.
But no city’s rents fell quite as much as our very own Boise’s did.
Rent fell by 3.2% on average in Boise between September and October, said Apartment List, a rental-listing service. Median rent was $1,063 for a one-bedroom apartment and $1,262 for a two-bedroom last month.
The reason rents in Boise fell a bit more sharply than in other places may have to do with the fact that Boise rents rose faster than anywhere else earlier this year. Rents are now 21.4% higher than they were one year ago. That growth rate is well above the national average of 15.8%, but slightly below Idaho’s overall 22.4% year-over-year apartment rent increase.
“Boise has long been topping our list for fastest rent growth since the start of the pandemic, but with this month’s dip, that top spot now belongs to Tampa, FL, where rents are up 36% compared to March 2020,” the Apartment List report said.
Local developers have noticed that cooling, too. But they aren’t expecting Boise’s rent to continue falling for long. According to them, rent typically begins to soften every year at this time before ramping up again in the spring. People are less inclined to move during the winter months, which takes a small amount of pressure off the fast-paced market, said Katie Vila, chief operating officer at Boise development company Roundhouse.
“Historically, occupancy usually takes a dip in November,” Vila said by phone. “Our goal is always to average about 95% year-round, but typically you’ll see higher occupancy in the summer months and then it usually dips below 95, maybe anywhere between 90% to 92%, in the winter months.”
Though David Wali, executive vice president at Gardner Co. in Boise, said sometimes that expectation can be a self-fulfilling prophecy. Landlords may adjust their rates in expectation of less demand at this time of year.
He has still seen a significant amount of demand in the area. Gardner’s recently opened apartment building, The Addison, got its occupancy permit three weeks ago. Located at 749 E. Park Blvd., already 191 of the building’s 237 apartments have been leased.
“I was expecting to be at that level sometime next year,” Wali said.
Rent at The Addison ranges from $1,550 for a studio to $2,975 for a two-bedroom unit. Upscale amenities include a riverside pool and resident parking on each floor.
Apartment rental prices are still on the rise across the country, but that growth is showing significant signs of slowing. Nationally, Apartment List shows rent grew by 0.8% in October, less than half of September’s growth rate and the smallest increase since February, according to the report.
Boise housing prices remain above 2020’s numbers and growth rates are outpacing prepandemic levels. It’s unlikely that rent will continue to decrease in the long-term, according to Wali.
“In general, there’s an enthusiasm for being in Boise,” Wali said. “It’s not just rent. It’s across the board. Whether it’s people moving here, more developers wanting to be here or investors wanting to be here. I’ve been here for the better part of 36 years now and I’ve never seen anything like it.”
Sally Krutzig covers Treasure Valley growth and development. Have a story suggestion or a question? Email Krutzig at skrutzig@idahostatesman.com.
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