Idaho leading the nation in year-over-year housing cost increases

Idaho (KMVT/KSVT) — Idaho tops the country in housing cost appreciation, with a nearly 36% increase in housing costs.

While Boise leads the charge in costs rising at nearly 38%, Twin Falls is not far behind.

“This year over last year, we’ve seen a 32% increase in the median home price,” said Magic Valley realtor Jordan Beard. “That’s a really steep increase for a one-year period of time.”

Just three years ago, a single-family home with three bedrooms and two baths sold for about $213,000. Today, the asking price will be about $385,000. That’s a staggering 80% increase in the asking price.

“Prices are sure running away and it’s your classic economic story, supply versus demand,” Beard said. “A lot of people moving in, a lot of kids now able to buy, we’re just in a population growth segment and that drives the prices up.”

With a substantial increase in population, what is being done to help increase the supply of housing in the area?

“There are more housing units being built in the area,” said Joshua Palmer who works for the city, “it’s having a difficult time keeping up with the demand.”

Another issue Palmer and the city-run into is trying to maintain the small-town feel that draws many new residents to the area. The city has started to get creative in the ways they provide dwellings.

“Condensed housing units like 160 Main Avenue,” Palmer said, “reduce that demand to develop out into farmland.”

Apartments and other forms of compact housing spaces may be the future of Twin Falls, saving the ever-important farmlands around the town while increasing the supply of housing.

According to Beard, that increased supply is the only real solution to these nation-leading cost increases.

“Twin Falls is growing, and I think the secret’s out. A lot of people are coming to Twin Falls and the Magic Valley,” said Beard.

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