In the last year, everyone has seen changes, especially here in Boise. One surprising change is that housing prices have risen, but what does that mean for Boise’s future?
In the last year, Boise City has seen a 16.4% increase in home sale price, a figure that leads the entire nation. According to MotleyFool.com, that increase is driven in part by people fleeing cramped coastal cities such as San Francisco and Seattle for places with less dense populations. However, the obvious driving factor is temporary, and there are serious questions about the current market’s sustainability.
How long will this last?
When people feel safer returning to densely populated areas, will those new Boiseans head back to the coasts? It’s impossible to say right now, but there is a certain human inertia that keeps people from moving if they don’t have to. With many companies finding their workforce is increasingly productive when de-centralized, many might not see a reason to head back to their former homes.
However, that simply means new residents are likely permanent. That does not mean the trend will continue.
Are there sustaining factors?
Having already mentioned “work-from-home” capabilities, there is a strong chance that this has forever changed the nature of work. If people can do their office jobs from anywhere in the country or world, why would people live in expensive, crowded cities? It could be that we’ve seen the start of a shift towards this de-centralized work philosophy.
Another driving factor, of course, is climate. People living on America’s coasts are the most at risk for any prospective sea level rise. In turn, that may serve as a driving factor for people to move to places like Idaho, which offers more space and higher elevations.
What is the right course of action for property developers?
In any event, developers should be cautious about making big bets on current trends. It will be some time before anyone knows what next year will bring. However, no matter the future, skilled, respected guidance from real estate attorneys who understand Boise will make a huge difference for tomorrow’s projects.