Why Do Investors Like Idaho Falls?

Historically, Eastern Idaho has been a "tertiary" market, meaning it is considered too small to matter. However, in the last four years, national builders, developers, and real estate investors have made substantial investments. Residents of towns like Idaho Falls and Pocatello have witnessed significant levels of construction and development. So, why is Eastern Idaho suddenly attracting attention from national developers and investors?

The answer lies in consistent and increasing population growth, supported by multi-industry job expansion, which forms the foundation for robust real estate conditions. Idaho Falls was recognized by the Milken Institute as the best-performing small city in the United States. The Milken Institute's evaluation incorporates 13 indicators assessing the labor market, high-tech influence, and access to economic opportunities.

Why Investors Choose Idaho Falls

Here's a glance at why national builders and investors choose Idaho Falls:



• Substantial professional jobs growth with above-median income
• Growing trend of population growth 
• Increased demand for homeownership 
• Decrease in housing supply 
• Increase in median home prices 
• Threats of affordability 
• Increase demand for housing rentals 
• Increased investor demand for multifamily investments 
• Cap rate compression 

Inflation and the devaluation of the dollar have become increasing concerns since the end of 2022. Investors continue to seek ways to hedge against inflation, with real estate remaining the most consistent and reliable option against a devaluing dollar.

Within the real estate sector, Eastern Idaho exhibits very low volatility compared to other markets nationwide. This stability and ability to offset inflationary pressures make Eastern Idaho highly attractive for stabilizing equity.