Idaho Falls is the fourth largest city in Idaho, and its population continues to climb. The city is known for dramatic views, rugged landscape, and plenty of outdoor recreation and entertainment along the Snake River. There are museums. There’s a zoo. There’s plenty of shopping and dining and art and culture. We have trails for hiking and biking. There’s ample fishing and boating.
Idaho Falls offers residents a high quality of life and a lot of opportunity for exploration.
It’s a great market for real estate investors who are looking to expand, diversify, or move into a profitable region where they’re likely to earn short term cash flow and long term returns.
Idaho Falls is an excellent market for real estate investors, especially with things shifting in real estate over the last couple of years. We’ve been living, working, and providing support to investors in Idaho Falls for years. You might think that makes us a bit biased. We are, but for good reason. We know the potential that this market has, and we love sharing what we know with local and out-of-state investors.
Let’s take a look at why you should invest in Idaho Falls real estate.
Introducing Investors to Idaho Falls
Idaho Falls has a welcoming and supportive business environment, whether you’re starting a new business, growing an existing business, or thinking about the business of rental properties and residential real estate. We also enjoy one of the lowest utility rates in the state and country, which keeps costs down for owners, renters, and investors. There’s an abundance of recreation and leisure activities available and a deep pool of qualified residents and trained workers.
Nearly 67,000 people live in Idaho Falls currently, and they all appreciate the high quality of life that’s available, for a relatively low cost of living, especially compared to larger cities along the coasts. There are a lot of great schools here, too, which draws a fresh population of students and tenants annually.
It helps that Idaho Falls is pretty. We have the Snake River flowing through the city, which is an aesthetically pleasing place to take a walk, ride a bike, or enjoy a day at one of the local parks.
Local Idaho Falls Economic Growth is Good for Investors
Idaho Falls, ID is a growing city that provides an excellent job market with the most promising industries being:
The unemployment rate in Idaho Falls is half the national average, which means tenants here are employed and well-qualified. The local and state governments are supportive of business and economic growth, providing incentives for anyone who plans to invest in building businesses here.
It’s not a great idea to invest in a market that’s struggling economically. In Idaho Falls, there are no such worries for new or experienced investors. Our local economy is growing, thanks to new employers moving into town and a robust population that continues to grow.
Idaho Falls is also enjoying a migration of people moving from nearby areas. The population has been growing rather steadily since 1990.
Idaho Falls is routinely listed by magazines such as Inc. and MSN Real Estate as one of the best small cities and one of the fastest growing small cities in the country. Major employers include the Idaho National Laboratory, which is focused on energy development, Meleleuca, a retailing operation, and the Eastern Idaho Regional Medical Center.
Idaho Falls Real Estate Remains Affordable
Idaho Falls is one of the more affordable cities in Idaho, and it’s especially affordable compared to other real estate markets where you may be investing. The average price for a home currently is around $366,779. This has jumped more than 30 percent over the last year or two, which means anyone who does own a home in Idaho Falls right now has really been able to increase equity and enjoy a higher home value.
The cost of living in Idaho Falls is lower than the national average. This draws new residents and it also gets the attention of real estate investors who know they can capitalize on low home prices and great opportunities for equity growth.
Rising Property Values in Idaho Falls
Homes have continued to appreciate, even as the market shifts and buyers start to hesitate thanks to higher interest rates and more expensive mortgages. There’s even some room for additional growth. When you invest in an Idaho Falls rental property, you can expect to begin earning money right away. Prices are still relatively affordable here, even with those values rising.
Investors who find themselves willing to pay cash can avoid the high interest rates that come with mortgages. They can also make their offers more competitive to sellers, which means it’s possible you’ll be able to pay less and close faster. Whether you’re paying in cash or financing your purchase in another creative way, you have a lot of opportunity in this market to negotiate exactly the deal that makes sense for you.
With rising home values are rising rents.
Rents right now in Idaho Falls are higher than they’ve ever been. You can count on collecting a recurring and consistent monthly rent that puts you in good shape when you study your bottom line. With your Idaho Falls investment property, you can plan for long term returns on your investments (ROI) and a stable, growing value – whether you buy one property or an entire portfolio; a single unit or a whole building.
Finding the Right Idaho Falls Investment Property
If you’re thinking about Idaho Falls as a market you might want to explore, you’ll also need to think about what type of property you’ll buy.
Avoid buying the wrong property. Even a thriving market like Idaho Falls won’t be able to help you if you don’t buy the right investment.
Choose something in a good location, and make sure it’s in good condition. Cosmetic fixes may be required, but you don’t want to buy a fixer upper that will require a huge investment of time and money. Remember that you want to begin renting out your investment property as soon as possible. If a lot of renovations need to be made, you’ll have a hard time getting it onto the market quickly.
Multi-family properties are excellent choices for new investors or even experienced investors who are new to a market. You’ll find you’re dealing with a much lower vacancy risk, and it’s possible you’ll be able to buy something that comes with a tenant already placed.
There are a lot of options for investors in the Idaho Falls real estate market. You have potential rental properties in a lot of diverse neighborhoods and a wide price range. Spend some time exploring these neighborhoods and getting to know the properties.
We recommend that you begin working with an Idaho Falls property manager early in your search for an investment property. This will provide you with some serious competitive advantages:
- Your property manager can tell you how much rent you’re likely to earn on a property you’re considering.
- Your property manager can estimate what kind of repairs and updates will be necessary on a property before it’s ready for the rental market.
- Your property manager can talk to you about vacancy times, potential maintenance costs over the long term, and what kind of tenants would likely be most interested in the property and the neighborhood you’re considering.
Surrounding yourself with experts early in the investment process will lead to better results and fewer mistakes.
Investing in Idaho Falls Real Estate Now
Whether you’re local to Idaho Falls or living outside of the area and looking for a great new market to explore, consider investing in Idaho Falls real estate. There is a growing number of industries, lots of high paying jobs and qualified tenants, and you won’t have to worry about overpaying for a great rental property with lots of potential.
There’s a huge potential for real estate investors. Like other parts of the country, supply is hardly keeping up with demand. We need some good rental homes on the market.
Here’s what you can do right now to prepare to invest in Idaho Falls:
- Get to know the city and its various neighborhoods. A property manager or real estate agent can help.
- Look for lending or financing. Unless you’re planning to pay in cash, you’ll need to secure a loan with the best price and maximum leverage for your next rental investment.
- Talk to a property manager about rental values you can expect, maintenance costs you should budget for, and how quickly you can expect to rent out your property.
- Close the deal and begin renting out your property.
We’d love to partner with you as you begin your investment journey in Idaho Falls. Please let us know what your investment goals are, and how we can help you reach them. If you’d like some property management help or investment advice in Idaho Falls, Pocatello, or the surrounding areas, please don’t hesitate to contact us at Jacob Grant Property Management.