‘Boise Is A Ticking Time Bomb, It’s The Worst Performing Housing Market’
The Boise area housing market continues to be unstoppable. After a brief traditional slowdown due to the winter season. It appears that home prices are rising once again in the Treasure Valley.
The housing crisis has trickled into the rental market, where renters have seen their rents rise at record rates. The Idaho Statesman reports that a California company has raised rents on Boisians by a whopping 77% increase. Another story by the Idaho Statesman profiled a family of five who had no place to live and is living in their SUV.
As home prices continue to grow in Idaho, unfortunately, the state's wages have not kept up with the cost of housing. The average household in Idaho is now using more of their disposable income to pay their rent or mortgage than in previous years. Could the wage gap and home prices negatively impact Boise's unparalleled housing market?
"This is the biggest bubble in America, says national real estate expert Nicholas Gerli of Reventure Consulting. Gerli has been sharing his theories about the Boise housing market for years on his YouTube channel. In his latest video, he breaks down the rising cost of homeownership by historically comparing the ups and downs of housing costs in the Boise area.
He says that if home prices and rents go up faster than wages, it's not sustainable. He shares the homeowner's cost of ownership in Boise. "Thirty-seven percent is the long-term average of what a home buyer spends of their earnings for their home in Boise. During the last bubble in 2007, homeowners spent fifty-four percent of their income. Today, they spend sixty-six percent on maintaining their home.
"Inflation is going to be very bad for Boise's housing market," reports Gerli. He shares his view on what will happen to Boise homeowners. "It means that the local home buyer is already going to be stretched and have less money for their savings. And then, the rising interest rates will push more people out of the market. Boise is a ticking time bomb. It is the worst-performing housing market in the last six months."
He predicts a housing crash; however, do you believe him?