Boise Vacation Rentals’ Impact on the Market
Most multifamily properties consider a “short-term rental” to be a 6-month lease. But for others, that gets dropped down to mere weeks or just an overnight. Now, that turnover rate is starting to get the local government’s attention.
Short-Term Rental Licenses in Boise
The concept of short-term rentals isn’t new. People travel to different cities for either work or personal reasons, and they want to stay in a house rather than a hotel. Here in Boise, the stats show that there were 824 active short-term rental properties in January 2021. The occupancy rate was approximately 60%, and the daily rental rate averaged just under $132.00. Obviously those numbers add up.
Both real estate investors and primary residence homeowners are taking advantage of these market opportunities. But a new city ordinance on the horizon could put a cap on the number of short-term rental properties in Boise.
In a recent press briefing, Boise Mayor McLean stated that her administration is currently in the planning stage for these changes. The intention is to require licenses for short-term rentals. With a cap on the number of properties that would fit that description, those property owners may be pressed to look into new streams of income—if not a new housing situation altogether.
What impact will more regulation have?
Homeowners who are relying on their short-term rental income to pay for their own mortgage will be in a tight spot if these license requirements come to fruition. With the option for that “gig” income gone, we might see demand rise even higher for multifamily residences. The shift wouldn’t be confined to Boise, either. We could expect people throughout the entire Treasure Valley to make the move to something more affordable.
At Commercial Northwest, we’re constantly analyzing the local news and watching the housing trends for Southwest Idaho. That’s why investors and developers continue to choose our team for their property management needs. If you’d like to learn more about our process, please don’t hesitate to send us a message!