Rental Market Trends 2015 Q3
Posted by Lisa Kohl on Tuesday, October 20th, 2015 at 8:30pm
ADA County Rental Market Summary Q3 2015. Vacancy rates dropped 0.4% to finish the 3rd quarter of 2015 at 3.4%. This is a 0.9% increase from Q2 2014 when vacancies stood at 2.5%. The largest decrease in vacancy rates from last quarter were in Multifamily investment properties. Multifamily vacancies dropped from 4.5% to 3.3%. Single family vacancies increased 0.5% to 3.5%. This is the third quarter in a row we have seen single-family vacancies increase. Although vacancies are only 0.2% higher than the third quarter of 2014.
Overall rents increased 3.0% during the quarter. Rental rates increased slightly for single family rental homes, with an average of $22 to $1,276 from $1,254. There was a large increase of $82, in rental rates for multi-family homes, from $734 to $816. If multifamily rates finish the year at the current level this will be an all-time high for multifamily rates.
Residential Investment Property Summary and Outlook
On a year over year basis single family rentals are showing higher vacancies and higher rents. Multifamily rentals are showing the same trend, higher vacancies and higher rents. The overall rental market remains strong. The biggest risk in multifamily is new inventory. For the first half of the year we saw 135 permits approved totaling 1150 new units. That’s up from 841 units from the first half of last year.
Residential property managers are still reporting long wait lists for single family rentals particularly in Boise. Unless we see a big change in home affordability, single family rentals seem to be the best positioned for continued growth.
Find additional information on Idaho Rental & Vacancy Rates.
Lisa Kohl is a professional Realtor in Boise, Idaho. Questions about the local real estate market? Contact us online or call (208) 391-4466.
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