Is Boise Facing a Housing Shortage?

Boise’s real estate market is heating up, and inventory remains tight. While there’s been a slight increase in available homes compared to last year, the number of listings is still at one of the lowest points in the past 11 months. With home sales rising and new construction supply limited, buyers and sellers need to stay informed on what’s driving the market.

Inventory Remains Low

At the end of January 2025, there were 588 active listings—about 15% more than the 475 available at the same time last year. However, this remains the lowest inventory level since February 2024. Demand is evident, with pending sales up 18% year-over-year—450 homes went under contract in January 2025, compared to 380 last year.

Prices Holding Steady

The median home price in Ada County ended January 2025 at $610,124, nearly identical to the 2022 peak of $609,000. While prices dipped slightly in 2023, the market has rebounded, indicating steady demand despite fluctuating interest rates.

New Construction & Supply Challenges

New construction inventory currently sits at 3.1 months of supply, providing some relief, but not enough to offset Boise’s overall housing shortage. Builders are seeing strong demand, with pending sales for new homes increasing from 605 in January 2024 to 731 in January 2025.

What’s Impacting Inventory?

Several factors contribute to Boise’s limited housing supply:

• Higher Interest Rates – While mortgage rates have dipped from their peak of 7.5%, they remain around 6.75%, keeping some homeowners from selling.
• Policy & Market Uncertainty – Potential tariffs on building materials could increase construction costs, though efforts to reduce bureaucracy may provide some long-term price relief.
• Long-Term Growth – Boise’s population growth continues to fuel demand, but new home construction isn’t keeping pace.

What This Means for Buyers & Sellers

With inventory at just 1.2 months of supply for resale homes, Boise remains a seller’s market. Buyers should be prepared for competition, while sellers can still take advantage of strong demand. If you’re considering making a move, having a knowledgeable agent is more important than ever.

Looking for insights on Boise real estate? Connect with a City of Trees Real Estate agent to navigate today’s market with confidence.