As the sun begins to set on our long-standing title, Idaho is no longer the fastest growing state in the country. The locals have happily passed this baton to Utah. The market has begun to settle down a bit, allowing the buyers who have been waiting in the wings, losing out on house after house, and outbid by the cash buyers, to finally look at a small but solid level of inventory in our housing market.
Make no mistake, the bottom has not fallen out and price reductions are simply a reflection of a strategy that once required a listing agent to anticipate 30-45 days of equity gain during the escrow period. The softening is a natural part of our local real estate cycle with projections for the year still hovering in double-digit percent equity gains.
With Idaho being one of the least impacted states for homeowners who are behind on payments following COVID-19, our projections are about as good as it gets. Many states in our country land in the 8-15.9% range of underwater homeowners. The equity gains Idahoans have realized over the last few years, even with a substantial drop, would keep equity levels well above tragic limits and a comfortable distance from those losses seen during the last economic crisis.
Our overall state unemployment is 2.7% compared to the national average of 3.5%. More specifically, our little city is doing even better, with only 2.6% unemployment. So, what does the future look like for our local employment?
The area’s largest employer, the Idaho National Laboratory, has some major plans for Eastern Idaho. According to the Supply Chain Strategic Plan for 2021 the INL anticipates 2200 new jobs by 2024 and an additional 5000 jobs by 2027. Of those 7200 new jobs, they anticipate 70% of new hires will come directly from our local labor pool. Additionally, this level of hiring will require substantial infrastructure and supporting industries. From professional services like accountants and Realtors to material suppliers and trades people who work directly and indirectly with the Lab, our economic boost will be substantial and sustainable.
Eastern Idaho Regional Medical Center is another force, recruiting medical professionals from far and wide to accommodate demand. Our school districts are also topping the list with a need for more and technology driven education. If you haven’t noticed, Melaleuca is an ever-expanding business whose birthplace is Idaho Falls and serves clientele internationally.
If you want a job, you can have one in our little corner of the world and further support the expansion and security our area will bring to people for many years to come.
Practically speaking, all the above means the endless flow of people moving into our area from out of town isn’t going to slow down soon and frankly we need as many as we can get. Growth and change will be part of our landscape for the foreseeable future and planning for just that has been a major part of the real estate industry.
Idaho Falls sounds like a pretty great destination for financial wellness and those who choose to invest in our community.