While there is no crystal ball that tells us exactly how the rental market will perform, referring to the trends and data collected from previous years can provide insight on what to expect in the new year. Over the last two years, the Treasure Valley has seen record highs for market rents and demand for housing. As we transition into the post pandemic era of 2023, most experts are forecasting the real estate market as a whole will stabilize and we will not see any drastic increases or decreases in market rent or vacancies. While supply and demand remain the most influential driving factors in the rental market, recognizing other major existential characteristics, like a pandemic or rising inflation, should always be considered when forecasting the direction of market rent and vacancy patterns.
For example, working from home is no longer a necessity, the rate at which individuals were moving from larger cities to suburbs has dwindled, and the overall demand for housing has declined. Rising interest rates has also resulted in a loss of buying power, and homes that were once flying off the market, are now being repositioned as a long term rental. This has increased the supply of homes for rent in both Ada and Canyon county alike. As a result of increased supply, and decreased demand, rentals are sitting vacant longer and the average market rent has fallen. However, this outcome in typical for this time of year. Historically, the rental market slows in the colder, fall and winter months, regardless of a pandemic or inflation. As the temperatures rise and the seasons change, we expect to see the habitual uptick in market rent, inquiries, showings and applications received on vacant properties.
If you are interested in finding out what your property will rent for in today's current market, check out our Rental Analysis tool available on our website! By providing a few property details, a full report will be generated with a detailed rent range estimate, expected property vacancy rate, rental saturation benchmarks, and will provide the properties used for comparables. This report is FREE and is sent directly to your email!