Why Boise real estate is irresistible to West Coasters seeking escape

Boise, Idaho, a bustling Northwest city of 227,000 people, is increasingly becoming a favorite destination for West Coasters seeking an affordable place to put down roots. In the past decade, Boise has added 20,000 people to its population, and earlier this year, Forbes named it the fastest-growing metro area in the U.S.  Driven by affordable housing, a more relaxed pace and lower taxes, people from California, Washington and Colorado are cashing out of expensive homes and getting more for their dollar in Boise.

The housing market is strong

Boise has been hot for the best part of the last three years. The median listing price of a home rose from $225,900 in August 2015 to $325,000 in July 2018, according to Realtor.com. Even with the rise, Boise is still one of the most affordable markets in the West.  “Home values continue to appreciate in the Boise area. They appreciated by about 10 percent in the last 12 months and they’re projected to appreciate by a minimum of 6 percent in the next 12 months,” says Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae, which processes mortgage applications.

Tyrell, himself, moved to Boise from Northern California nine years ago, citing a more affordable cost of living as the primary reason.  Houses are selling like hotcakes. Boise broke inventory records in July, with the median age of inventory at just 34 days. This was twice as fast as three years ago, according to Realtor.com.

Doing business in Boise

Boise is also luring business owners who want to reduce their operating costs and taxes.  “The cost of living in California is just fine if you already live here, but if you’re trying to attract employees to come and work for you from out of state it’s almost impossible. They can’t afford housing. They can’t afford the transportation. The taxes are significantly higher than most other states — property tax, income tax, sales tax. Just name the tax,”

Boise attracts boomers, Gen X

Gen Xers claim the largest share of new mortgages in Boise, with more than 45 percent of mortgage applications in July, according to Realtor.com. However, baby boomers have a strong presence in Boise, at a rate almost 1.4 times greater than the national average.

“When we look at mortgage applications we look at the age group that’s dominating sales in mortgage originations and in Boise. We’re seeing a higher than average share taken by the 55 and older age group,” says Javier Vivas, director of economic research at Realtor.com. “Generation X and families with older kids, who are looking for space, are another group that’s buying here.”

The climate is a huge draw

One of the first things transplants notice about Boise is the climate, says Tyrell. Residents can enjoy a white Christmas without the inconvenience of being snowed in, as well as warm summers and sunny skies. This is particularly important for Californians who are used to a variety of outdoor activity.

“For Californians it’s really hard to make the move across the country. They tend to look at neighboring states,” says Turner. “You look at places like Arizona and Colorado but half the year you can’t go outside because it’s too hot or you’re digging your car out of the snow. If you look at places like Oregon and Washington all you’re seeing are grey skies. Californians really struggle with that. Boise is the perfect balance. You have these incredible outdoor spaces with a bustling city nearby.”

Source: https://www.bankrate.com/mortgages/californians-leaving-big-ticket-west-coast-cities-to-boise/