Idaho, once again, led the nation in home-price gains, as the latest CoreLogic Home Price Index (HPI) [1]reported the state saw home prices in August rise 11.6% year-over-year—more than triple than the nation’s 3.6% increase.
The next highest appreciation is 8% in neighboring Utah. Idaho’s largest region, Boise, reported price increases of 12.4% in August. Idaho has reported the largest annual price games for 11-consecutive months, and average annual gains in homeowner equity is $22,000 during Q2 2019.
CoreLogic states that Idaho’s price growth has been fueled by the nation’s highest job and population growth. Its non-farm annual employment growth was 2.1% in August, higher than the nation’s 1.4% increase and No. 7 among all states.
Idaho’s 2.1% population growth between July 2017 and July 2018 tied Nevada's as the nation’s highest. The overall U.S. growth rate during that same period is 0.6%, according to the U.S. Census Bureau estimates. Around 30% of all people moving to Idaho from another state in 2017 came from California, which is an increase from 23% during the peak of the last housing cycle in 2005.
Californians migrating to Idaho are seeking price relief, as the average home price in Idaho is $265,151—87% lower than the average California median-home price.
California had the lowest home-price appreciation are under 2%.
In an effort to combat affordability and inventory, the Los Angeles Times reports [2]that California lawmakers passed several pieces of legislation over the past four year, which have chipped away at single-family zoning. The laws would make it easier for homeowners to convert garages into residential spaces and build freestanding homes.
California Gov. Gavin Newsom signed multiple bills into law this week that allowing property owners to build a backyard home of at least 800-square-feet. The bill would also allow homeowners to convert a garage, office, or space room into living quarters. New legislation would allow for three homes on land previously zoned for single-family.
“We’re on the precipice of single-family zoning functionally not existing,” said Ben Metcalf, former Director of the state’s Department of Housing and Community Development.