IRR-Boise Mid-Year Viewpoint 2015 Local Market Report - Multifamily
The apartment market in the Boise MSA remains strong, due to the recovering economy, years of inadequate development (throughout most of the 2000s), and the Millennial generation's greater preference for renting. Construction continues at a brisk pace, with over 1,700 new units completed or under construction over the year year, yet absorption remains strong, resulting in sub-5% vacancy. Rental rates continue to grow, though the pace of growth has moderated, suggesting that the significant recent supply growth is having some effect on the market.
The investment market also remains strong, with cap rates continuing to decline, now testing historic lows. The Downtown submarket is one of the best performers, with two new projects that are fully leased: Owyhee Place (a renovation of an older hotel building) and 916 Park (new construction, featuring apartments on the upper levels and live/work units on the ground floor).
The Meridian and West Boise submarkets have also been popular with developers. Canyon County (Nampa and Caldwell) have yet to see significant new construction, but are growing, cost-driven bedroom communities, so look for multifamily development to begin shifting to this area over the next few years.
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IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.