TWIN FALLS, ID (KMVT-TV) Idaho's commercial and residential real estate has seen its ups and downs over the years. And now, foreclosures and a mass of unsold homes keep driving values lower.

"We see some difficult real estate environment with devaluing commercial real estate, devaluing home values, said Zions Bank Regional President Kelly Anderson.

Officials with Zions Bank say the current real estate situation is causing many people to be pretty cautious.

"Every state is a little different, every market is a little different,” said Anderson.

On average, home prices are now down 33% from the 2006 peak.
As more and more homes go into foreclosure, lending requirements have tightened.

"It's a lot tougher for people to get into homes, its with a sizable down payments required and tougher underriding,” said Zions Bank Executive Vice President Michael Morris.

"We've gone back into what - in our lending parameters, in our lending guidelines back to where we were several years ago, before the subprime lending and all of that came into the scene,” said Anderson.

The percentage of Americans who own their own homes has dropped to the lowest point in over a decade. And now, more people are choosing to rent.

"Because of the foreclosure crisis, more and more homeowners are starting to move into apartments - there is a demand for apartments and apartments are sort of the property type of favor right now,” said Morris.

"We're seeing the vacancy rate drop and people how have rental properties, this is giving them a lift right now,” said Anderson.

Officials predict many who are moving into apartments will buy homes again in the future.
But - they may have to deal with those tougher lending requirements.