Boise, Idaho, multifamily landlords are pushing up rents, as the market sees relief in supply coming online. The average rental rate in the second quarter was $1,630, an increase of 284 basis points from the previous three months, an analysis from CBRE found.
"The increase in the average rental rate in Q2 2025 brought the metric to its highest point since Q3 2022. This brought the average rental rate to 7.3% higher than the 5-year average," the CRE firm said.
CBRE attributed the growth to deliveries slowing to 516 units, the lowest amount in a three month period since the second quarter of 2023.
But it wasn't just rents commanding strength in the environment. Occupancy improved by 32 basis points to 95.1 percent. Net absorption of 603 units not only outpaced supply but is above the 10-year average by nearly 10 percent. That goes against a historical trend.
"Over the past decade, new supply has exceeded quarterly absorption by an average of 30 units," CBRE noted.
Additionally, there are some favorable underlying metrics to keep in mind, which relate to affordability. Median household income in Boise is 5.4 percent above the national average, and the rental market is 14.6 percent cheaper than the national average. Plus, Boise has been one of the quickest-growing cities in terms of population since 2020, according to CBRE.
Overall, CBRE is bullish on the performance going forward. It predicts that rent growth will continue to accelerate, followed by occupancy set to "increase throughout 2025."
"Boise's multifamily market rebounded in Q2 2025, a welcome sign after a slow 2024," said CBRE.
"This quarter's performance helped market fundamentals bounce back to near highs seen in late 2021 and early 2022."
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