Why It Matters
Idaho is building homes at a record pace, but the construction boom has done little to ease the financial strain on working-class residents. A growing gap between what Idahoans earn and what housing costs means that even record-breaking growth may not be enough to solve the state’s affordability problem.
What Happened
For the second year in a row, Idaho posted the highest housing unit growth rate in the country, according to new data. The state added more than 17,000 housing units in 2025 alone, pushing its total housing stock up by 2.1% in a single year.
Between 2020 and 2025, Idaho’s housing inventory grew by more than 12% — more than double the national rate of 5.3% over the same period. More than 90% of Idaho cities saw positive population growth since 2020, with the Treasure Valley bearing much of that pressure. Caldwell, Meridian, and Nampa together absorbed nearly 10,000 new residents between 2024 and 2025.
Statewide, Idaho’s population grew 1.4%, ranking second nationally behind only South Carolina.
By the Numbers
- 17,000+ housing units added in Idaho during 2025
- 12% total growth in Idaho’s housing stock from 2020 to 2025, versus 5.3% nationally
- 35,000 affordable housing units still needed statewide
- 33 affordable and available units exist for every 100 rent-burdened households in Idaho, per the National Low Income Housing Coalition
- 126 hours per week — the amount a minimum wage worker would need to work to afford a one-bedroom apartment at average fair market rent
The Affordability Gap
Despite the construction surge, the gap between supply and affordability remains stark. The National Low Income Housing Coalition found that Idaho has only 33 affordable and available units for every 100 households that are cost-burdened by rent — a figure that underscores how far short the market is falling for lower-income residents.
A 2026 report from Jesse Tree, a Boise-based housing nonprofit, found a $30,000 annual income disparity between the people leaving Idaho and those moving in. Wealthier in-migrants are driving up housing costs, while longtime residents on fixed or lower incomes are increasingly priced out.
Ali Rabe of the Gem State Housing Alliance put it plainly: “Idahoans can’t afford to buy a house in the town they grew up in.”
The affordability crunch falls hardest on renters. A minimum wage worker in Idaho would need to put in 126 hours every week — more than three full-time jobs — just to cover a one-bedroom apartment at fair market rent.
Zoom Out
Idaho’s housing trajectory mirrors trends across the Mountain West, where rapid population growth has outrun infrastructure and workforce housing capacity. States like Montana, Utah, and Arizona face similar affordability crunches even as their building permits climb. The difference in Idaho is the scale of population acceleration relative to income levels, which creates a structural mismatch that raw unit counts alone cannot fix.
The state legislature took a step toward addressing the supply side during the 2026 session, with Gov. Brad Little signing zoning code reform legislation designed to remove barriers to new construction. The new law takes effect next month, and local governments have until February 2027 to update their municipal codes.
Pocatello Mayor Mark Dahlquist voiced a common concern among local officials about top-down mandates, saying he believes “it is better for the cities individually to determine what their needs are and set their own codes.” How cities respond to the February 2027 deadline will likely shape Idaho’s housing trajectory for years to come.
What’s Next
With the zoning reform law set to take effect shortly, attention will shift to whether municipalities move quickly to update their codes or push back against the new requirements. Advocates say the law is a meaningful step, but warn that structural affordability problems — driven by wage stagnation and rising land costs — will require additional action beyond zoning changes alone. The February 2027 deadline gives local governments roughly eight months to comply.
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