Idaho Housing Affordability: Where We Stand Currently

In my many conversations with homebuyers and sellers here in the area there seems to be a local understanding or belief that when it comes to the most expensive place to live in the country, it's got to be California, right? WRONG. While California is an expensive place to live, it is NOT the most expensive when it comes to housing affordability. That distinction rests with our neighbor the north, Montana. Many of these clients that I talk with are even more shocked to find out that it is our home state of Idaho that lays claim the the second most unaffordable housing in all of the country. Let's take a look at some numbers to shed more light on this infamous distinction.

Understanding “Unaffordability”

When we talk about housing affordability, we’re not just talking about home prices. Affordability takes into account the median home price in a given area and the median household income. The National Association of Realtors and U.S. Census Bureau data indicate that when home prices grow faster than wages, affordability plummets—and that’s exactly what’s happened here in Idaho.

According to a recent 2024 study by Oxford Economics, which ranked states by the ratio of median home price to median household income, Idaho came in SECOND in the nation for housing unaffordability. The state’s price-to-income ratio currently sits at around 7.5, well above the historical average of 3 to 4. This means that the average home in Idaho costs 7.5 times what the average household earns in a year. By contrast, even notoriously expensive states like New York and Massachusetts hover in the 5.5 to 6.5 range.

So What Happened?

There are several key reasons Idaho’s housing market has become so strained:

1. Rapid Population Growth – Between 2015 and now, Idaho has been one of the fastest-growing states in the U.S., with new residents flocking from California, Oregon, and Washington seeking lower costs and a higher quality of life. But our housing infrastructure hasn’t kept up.

2. Pandemic Migration Trends – During COVID-19, Idaho became a hot spot for remote workers looking to escape urban areas in favor of places with recreational opportunities and more space. This drove demand sky-high while inventory remained low.

3. Soaring Home Prices – In cities like Boise, the median home price skyrocketed to over $525,000 in 2022—up from around $250,000 just five years earlier. Even in more rural or smaller towns like Rexburg or Saint Anthony, home prices have seen double-digit increases year over year.

4. Wages Haven’t Kept Up – Despite the influx of new residents and rising housing costs, Idaho’s median household income still lags behind the national average, sitting at around $69,000 in 2023 (U.S. Census). This disparity puts additional pressure on local buyers.

   
   

Local Deep Dive: 🏡 Rexburg: A Market Under Pressure

Rexburg has experienced significant growth in home values over the past few years. As of early 2025, the average home value in Rexburg is approximately $419,167, reflecting a 2.5% increase over the past year . Additionally, median sale prices have been reported at $328,000, marking a 9.0% year-over-year increase.

Despite these rising home values, the median household income in Rexburg proper stands at $50,359 and $58,259 for Madison County as a whole . This disparity between income and home prices contributes to affordability challenges for many residents. https://www.census.gov/quickfacts/fact/table/madisoncountyidaho,rexburgcityidaho/INC110223

🏘️ Saint Anthony: Rising Values Amidst Modest Incomes

In Saint Anthony, the housing market has also seen upward trends. The average home value is approximately $339,347 with a 4.3% increase over the past year.

The median household income in Saint Anthony is around $52,446. While this is slightly higher than the city of Rexburg median income, the affordability gap remains a concern, especially considering the rising home values.

Notably, the homeownership rate in Saint Anthony is approximately 62.0%, aligning more closely with national averages . However, the community still faces challenges related to housing affordability, particularly for first-time buyers and lower-income households.

📊 Affordability Ratios: A Comparative Look

To assess housing affordability, we can examine the price-to-income ratio, which compares median home prices to median household incomes:

• Rexburg: With a median home value of $419,167 and a median household income of $50,359, the price-to-income ratio is approximately 8.3.

• Saint Anthony: With a median home value of $339,347 and a median household income of $52,446, the ratio is approximately 6.5.

A higher ratio indicates greater affordability challenges. Both communities exceed the traditional benchmark of 3.0 to 4.0, suggesting that housing affordability is a significant concern in our area.

🧭What This Means for Buyers and Sellers

For buyers, especially first-timers, this means that stretching to afford a home has become the norm—often requiring higher down payments, creative financing, or moving farther from job centers to find affordable options. Furthermore, these statistics underscore the importance of strategic planning and financial preparedness. It's crucial to explore various financing options, consider different neighborhoods, and work with knowledgeable real estate professionals to navigate the current market.

For sellers, however, this market continues to be favorable. Demand remains high, and in some cases, well-priced homes in good condition are still receiving multiple offers. Still, with increasing unaffordability, the buyer pool is likely to shrink at some point making it essential to price properties appropriately and understand the local market dynamics to attract qualified buyers.

Will It Stay This Way?

There’s a growing consensus among economists that while Idaho’s housing market may cool slightly in the coming years, affordability will remain a challenge unless there is a significant increase in housing supply and wage growth.

Local governments are slowly making moves to improve the situation—rezoning for higher density, approving more building permits, and investing in infrastructure—but these are long-term solutions. One way to be involved in the process is to attend your local planning and zoning commission meetings and speaking in favor solutions that appropriately create more supply.

Final Thoughts

So yes, while Idaho still offers stunning natural beauty, low crime rates, and a friendly small-town feel, we can no longer ignore that we’re facing one of the nation’s most serious housing affordability crises. Whether you're a buyer navigating a competitive landscape or a seller looking to take advantage of market trends, understanding the true dynamics at play is essential.

If you’re thinking about buying or selling in this environment, don’t go at it alone. I’m here to help you understand your options, navigate market conditions, and make smart, informed decisions.

Feel free to reach out with any questions or for a personalized market analysis—I’d be happy to help.