The 1st quarter vacancy survey from the SW Idaho Chapter of the National Association of Residential Property Managers (NARPM) was just released. While majority of the quarter was unaffected by the COVID-19 pandemic some of these results (mainly the average rental prices) were due to proactive measures taken (not raising rents and or lowing the vacant ones slightly) when the pandemic first hit by many property managers. Good news is that vacancy is at 2.7% for Ada County, which includes Boise city and 2.8% for Canyon. This is well below the national average which is at 6.8%. FRPM maintained a vacancy under 1% the entire first quarter. This is due to FRPM's internal processes limiting leases expiring in these first three months of the year. Overall rents are still increasing but at a slower rate than normal for this time of year. As we head into the second quarter vacancies are expected to slightly increase and rents will likely plateau which is not usual for this time of year.
How will COVID impact the 2nd quarter? Vacancies are already trending upward, due to social distancing and stay-at-home orders. There are less people moving, which has decreased demand. While everyone in the nation is expecting non-payment of rent to be the big hit to Landlords, we actually think the increased vacancy and lower effective rent, may actually be the bigger number. In order to maintain quality, vetted tenants and avoid a vacancy during these uncertain times, the FRPM team is recommending that investors not be aggressive on renewal rates. We anticipate the Boise market picking back up at its usual pace, but the question is when.
Read the full report here: SW Idaho Narpm Report