While most of the country continues to recover from a destabilizing pandemic, the economy and the real estate market in Idaho Falls has been strong and actually continues to grow. The demand for housing has been high, and the supply has been able to keep up.
Whether you’re an experienced investor looking to grow your portfolio, a new investor planning to purchase a rental property for the first time, or an investor interested in building something new from the ground up, this is a great time to do it in Idaho Falls.
Always talk to an Idaho Falls property management company before you make any investment moves. We can talk about how the current market and our future projections will impact your plans and your own portfolio of properties. It’s the best way to make smart decisions.
Quick Statistics about Idaho Falls Real Estate
Here’s a snapshot that will introduce you to the housing market in Idaho Falls for 2021:
- Average market rent is around $1,074 per month.
- Owners make up 62.4 percent of the market.
- Renters make up 37.6 percent of the market.
- Just over 7 percent of the properties in Idaho Falls are currently vacant.
- Apartment buildings and multi-family properties make up 25 percent of the market.
Over the last decade, there’s been a lot of growth in the Idaho Falls market, especially when we talk about appreciation. Real estate in Idaho Falls has appreciated an average of 58.88 percent over the last ten years, which is an average annual home appreciation rate of 4.74 percent. These numbers easily establish Idaho Falls in the top 20 percent of markets for appreciation. If you are a home buyer or real estate investor, Idaho Falls definitely has a track record of being one of the best long term real estate investments in the country throughout our recent history.
The pandemic has not had a disastrous effect in Idaho Falls. Even in 2020, appreciation rates hovered at around 11 percent, which is higher than appreciation rates in more than 99 percent of cities throughout the country.
Seeking Cash Flow and Cap Rates
Cash flow is important to any investor, and the 2021 market will deliver that to owners, especially in the multi-family property field. Rents have remained steady and are generally at or above $1,000 a month in Idaho Falls. Considering the cost of acquisition, we expect an occupied property to earn investors immediate income gains.
Establishing the cap rate on a property you’re thinking about buying will help you know right away whether it will be profitable. We can help you establish that based on the data we’ve collected throughout the local market.
Maximize the Positive Market with Smart Investment Advice
The location of your multifamily property impacts the tenants you attract, the rental value of each unit, and the overall profitability of the investment. Target properties that are in desirable school districts and close to recreation, shopping, and entertainment. In Idaho Falls, there are dozens of neighborhoods within the larger rental market, and you need to know what your investment property location will mean for your success.
You also need to consider improvements and upgrades. We have experience in helping investors earn more on their properties and buildings. As an example, we made some recommendations on capital improvements and updates to a fourplex and the result was a 15 percent increase in property value and a 15 percent increase in rental income.
If you have questions about the general Idaho Falls rental market and how your properties can be expected to perform, contact us at Jacob Grant Property Management.