Idaho’s housing market experienced dramatic changes from 2018 through 2023, especially among its highest-earning households. Families making $500,000 or more per year – a small but influential segment – have been active in purchasing real estate across the state. But what have those wealthy buyers have been doing? What types of properties and locations do they favor? Have they been upsizing or downsizing, and how many are staying in their primary homes versus buying vacation retreats or investment properties?
Idaho’s Wealthiest Homebuyers: A Growing Market Segment
Even though households earning over $500,000 are a tiny fraction of Idaho’s population, their impact on the housing market has grown significantly in recent years. An influx of high-income newcomers combined with rising local prosperity has expanded the state’s luxury home market.
For example, Ada County (home to Boise and its suburbs) saw million-dollar home sales skyrocket in this period. Back in 2010, only one home in Ada County sold for over $1 million; by 2018 there were 95 such sales. The trend accelerated even more after 2018 – in 2019 there were 156 million-dollar sales, and by 2021 nearly 950 homes sold above $1 million in Ada County.
Who’s Buying Luxury Homes?
According to Boise luxury real estate agents, wealthy buyers represent a mix of successful Idaho locals “moving up” to bigger homes and out-of-state transplants drawn by Idaho’s lifestyle. Many local business owners and professionals with rising incomes have leveraged built-up home equity and strong stock market gains to purchase more expensive houses in-state.
At the same time, wealthy newcomers – often from higher-cost states – have flowed into Idaho, bringing incomes that would be top-tier anywhere. Net migration data confirm a wealth influx: in 2020–2021 Idaho gained over $2.1 billion in adjusted gross income due to people moving in (one of the highest per-capita influxes nationally).
The California Connection
High earners from California, in particular, have been arriving in large numbers. The SALT deduction cap from the 2017 tax law (which limited state/local tax write-offs) hit residents of high-tax states like California hard, spurring some to relocate to lower-tax states such as Idaho. California has lost roughly 500,000 residents per year in recent years, primarily to states like Idaho, Arizona, and Texas. Idaho’s pro-business climate with moderate taxes and less regulation made it especially attractive to these migrants.
The end result is that from 2018 to 2023, Idaho’s pool of $500K+ earners grew substantially. In Boise, the typical homebuyer’s income jumped 24% in just two years (2019 to 2021), reaching $98,000. While $98K is still far below $500K, that rapid increase – the largest of any major U.S. metro – illustrates how higher-earning professionals poured into Idaho during the pandemic boom, raising the bar for what a “typical” buyer earns.
Luxury Market Hotspots: Boise Metro and Resort Towns
Geography has been a defining factor in where Idaho’s wealthiest households buy homes. Two primary areas have attracted high-income buyers from 2018–2023: the Boise metropolitan area (including its upscale suburbs) and Idaho’s scenic resort regions.
Boise and Suburban Ada County
The greater Boise area remains the first choice for many affluent Idahoans and newcomers alike. As the state’s economic center, Boise offers upscale neighborhoods, country club communities, and proximity to jobs and urban amenities. Affluent buyers in the late 2010s and early 2020s showed a strong preference for high-end suburbs and foothill locales around Boise.
A 2022 analysis found that the hottest housing markets in the nation were overwhelmingly suburban areas outside city centers – a trend reflected in Boise where wealthy buyers gravitated to places like Eagle, Meridian, and the Boise Foothills rather than the downtown core. This represents a shift from the early 2010s, when living closer to downtown Boise was not as cost-prohibitive.
By 2020–2022, remote work enabled more spread: well-off families could prioritize space and privacy over commute times, leading them to buy larger homes on the periphery of Boise. Every community in Ada County saw price appreciation, but the luxury segment truly boomed in suburbs like Eagle. From May 2021 to May 2022, 880 homes sold for over $1 million in Ada County, nearly half of them in Eagle alone.
Boise’s Treasure Valley became one of the fastest-appreciating luxury markets in the entire country, with high-end home values about 30–40% higher in 2023 than five years prior. Realtor.com crowned Boise as the #1 market for luxury price growth over the 2015–2023 period, crediting an influx of “low-profile, deep-pocketed buyers” seeking a refuge with natural beauty.
Resort and Recreation Areas
Idaho’s high-income homebuyers have also flocked to the state’s famed vacation destinations, either as their primary residence (for those who can work remotely) or as second homes. Coeur d’Alene in North Idaho and Sun Valley/Ketchum in the south-central mountains are prime examples.
During the pandemic, there was a “stampede to scenic hotspots” as affluent city-dwellers sought refuge in smaller cities with outdoor recreation. The Wall Street Journal/Realtor.com Emerging Housing Market Index in 2021 ranked Coeur d’Alene as one of the top three luxury markets to watch in the nation, alongside Provo, UT and Reno, NV.
High-end real estate in Coeur d’Alene was suddenly in extreme demand. Wealthy buyers from California, Washington, and Texas vied for waterfront properties on Lake Coeur d’Alene, driving prices to record highs. Nearby Sandpoint and Lake Pend Oreille also saw increased interest for estate homes and ranches.
In Sun Valley, an iconic ski retreat for the rich, vacation home purchases surged. Blaine County (Sun Valley’s county) has only ~22,000 residents, but more than half of its houses are owned by part-time residents (second-home owners or short-term rentals). Private jet traffic into Sun Valley’s airport hit all-time highs as affluent owners flew in to isolated luxury lodges.
Other Emerging Luxury Areas
Areas like McCall and Donnelly (Valley County), known for lakes and ski resorts, saw high-end cabin development for wealthy Boise residents looking for nearby getaways. The Teton Valley (Victor, Driggs) on Idaho’s eastern border became a lower-cost alternative to Jackson Hole, with some high earners buying acreage or luxury modern homes with Teton views.
From north to south, Idaho’s recreational real estate market attracted strong investment from $500K+ earners who wanted either a full-time move to the mountains or a vacation retreat within the state. Many of these buyers have kept their primary homes in Boise or out of state, effectively splitting time between an Idaho resort home and another residence.
Upsizing in the Pandemic Era
With more money to spend and often a desire for more space, most $500K+ earners have been upsizing their homes in 2018–2023. Larger houses with more land and amenities have been in high demand among this cohort.
Remote Work and Home Features
After 2020, many wealthy professionals suddenly found themselves working from home and spending far more time on their own property. This made spacious homes a must-have. Buyers in this income bracket overwhelmingly sought extra square footage for dedicated home offices, gyms, and entertainment rooms. What used to be luxury extras became near necessities.
In Idaho, a state known for outdoor recreation, affluent buyers also looked for big yards and hobby spaces (from home theaters to workshops and home classrooms for their kids). Boise-area luxury realtors noted a boom in demand for homes with resort-like features – in-home gyms, spa facilities like saunas and cold plunge pools, and home theaters – reflecting buyers’ intent to recreate all their favorite leisure activities under one roof.
Land and Outdoor Living
Upsizing wasn’t just about interiors. High-end Idaho buyers also looked for land. Especially for those relocating from dense cities, the idea of having acres of privacy or waterfront access was a big draw. Estates with room for outdoor kitchens, pools, sports courts, or horse facilities saw heightened interest.
In Ada County, listings of luxury homes frequently boasted expansive outdoor living areas and mountain views, and those features often sparked bidding wars. Some affluent buyers also sought multi-generational homes – large properties with guest houses or separate living suites – to accommodate extended family.
The Downsizing Minority
While upsizing and lavish features dominated the preferences of many high earners, there was a countercurrent of downsizing during 2018–2023 – primarily among older wealthy Idahoans. The long economic expansion and rising home values of the 2010s finally gave many Baby Boomers the chance to sell high and simplify their lives.
Nationally, Baby Boomers were the largest share of home sellers in this period (45% of sellers), and those in their late 60s and 70s were the most likely of any age group to buy a smaller home after selling. Idaho followed this pattern: after years of price gains, a significant number of Idaho boomers decided to sell larger family homes and downsize to something more manageable.
Empty-nesters in Boise, for instance, might sell a 4,000 sq. ft house on acreage (eagerly bought by a younger high-income family moving up) and move to a 2,000 sq. ft luxury condo or a single-level patio home. Retirees cited reasons like their previous homes being “too large” or wanting to live on one level without stairs.
However, not all affluent boomers ended up downsizing – many chose to “age in place” instead, staying put in their long-time homes. With low interest rates on existing mortgages and Idaho’s homeowner-friendly property tax rules (especially for seniors), some found it made financial sense to hold onto a house even if it was larger than they needed.
Primary Residences vs. Additional Properties
For Idaho’s wealthiest households, one key question has been: do you stay in your primary home or buy additional properties? The data indicates many did both – they remained in Idaho as owner-occupants (few left the state during this period) and also expanded their real estate portfolio with second homes or investment properties.
First, it’s important to note that almost all home purchases by this group were owner-occupied primary residences. Unlike institutional investors or flippers, high-earning households typically bought homes to live in them (at least part of the year).
That said, a significant number of Idaho’s priciest homes are not full-time occupied by their owners. Statewide, about 22% of all homes do not have a homeowner exemption (the tax break for a primary residence), meaning roughly 1 in 5 houses is owned by someone who isn’t a permanent resident. In Ada County the figure was also ~22% in 2020.
Vacation Homes
Two common scenarios for these additional purchases were vacation homes for personal/family use and rental investments for income. On the vacation home side, many affluent Boise-based families elected to stay in place in their primary Boise-area residence while buying a getaway in the mountains or by a lake.
For instance, a successful Boise executive might keep their primary suburban home but purchase a second house in McCall to use on weekends and holidays. In other cases, a high-income transplant may have moved into a scenic area like Ketchum as their primary home, but then decided to also snag a condo in downtown Boise for when they want city amenities.
By maintaining one foot in Idaho’s urban center and another in its wilderness playgrounds, affluent households could balance work and play. This trend speaks to Idaho’s attractiveness: many didn’t feel the need to buy a second home out of state when Idaho itself offers vacation-worthy locales within a few hours’ drive.
Investment Properties
Wealthy Idahoans did not ignore the hot rental market. With rapid population growth and limited housing supply, rents were climbing steeply in 2018–2023, presenting an opportunity. Some high earners bought additional houses or small multifamily properties in Idaho as long-term investments, renting them out to capitalize on rising rents.
Others participated in the short-term rental boom by purchasing condos or cabins in tourist areas explicitly to list on Airbnb/VRBO. A 2021 investigation revealed a “new wave of investor capital” in Boise housing and noted that Boise was “on everybody’s radar” for real estate investment due to record-low interest rates and rising home values.
In 2021, investors (individual and institutional) accounted for roughly 20% of home sales nationally and in Idaho. Many of those would be smaller-scale investors like local professionals with spare cash or out-of-state second-home buyers, not just large companies.
It’s also worth noting that Idaho’s high-income homebuyers largely stayed in Idaho during this period – there was very little out-migration of this group. Unlike some states that saw an exodus of the rich, Idaho retained its wealthy and attracted more.
Idaho vs. The Nation: Comparative Trends
Many of the homebuying behaviors of Idaho’s $500K+ earners in 2018–2023 mirror trends seen across the United States – especially in other fast-growing Western states – though there are some unique local twists.
Part of a Larger Migration
Idaho’s influx of wealthy residents was part of a larger pattern of affluent migration to smaller cities and tax-friendly states. Along with Idaho, places like Arizona, Texas, Utah, and Montana saw upscale buyers pouring in. The common draw was lower taxes, more space, and often warmer climates or outdoor amenities.
Extreme Price Appreciation
Nationally, 2018–2021 was a period of significant home price appreciation, and Idaho was a standout for extreme growth. Idaho consistently led U.S. states in annual home price increases during 2019, 2020, and 2021, in part due to the demand from well-heeled buyers.
By late 2021, Boise home prices were up 53% compared to two years earlier – one of the sharpest rises in the country. For the luxury segment, U.S. prices hit record highs: the typical luxury home nationwide sold for $1.17 million in Q4 2023, up 8.8% year-over-year.
In Idaho’s prime markets, the gains were even larger; Boise’s top-tier prices jumped roughly 30–40% over five years, and Sun Valley saw high-end home values reach levels never seen before (often $1,000+ per square foot for premium ski properties).
Cash Purchases
Wealthy buyers nationwide leveraged their financial strength to win homes, and Idaho was no exception. Across the U.S., nearly half (46.5%) of high-end home purchases in late 2023 were all-cash, an all-time high share.
Idaho’s luxury market similarly saw heavy cash activity – many affluent buyers from California sold homes there at a premium and came to Idaho with cash in hand, making them formidable competitors in bidding.
Record-low interest rates earlier on also played a role: in 2020–21, 30-year mortgage rates dipped under 3%, which significantly boosted the purchasing power of upscale buyers. Some high-income households who didn’t pay outright cash still capitalized on cheap debt to afford more expensive homes or to carry two mortgages.
Market Cooling
By 2022, as rates rose sharply, the high end cooled somewhat across the board. The Fed’s rate hikes that pushed mortgages above 7% by late 2022 caused even wealthy buyers to think twice.
By early 2023, U.S. luxury home sales had plunged 45% year-over-year, a record decline. Idaho’s markets saw a similar pullback in sales volume – after the breakneck pace of 2020–21, fewer buyers pulled the trigger in 2022 when monthly payments jumped.
But importantly, prices in Idaho did not crash; they largely held or continued rising slowly, supported by the fact that so many high-end purchases were cash (removing forced selling due to rates) and the ongoing shortage of supply.
Tax Considerations
High-income homebuyers everywhere pay attention to tax implications. Idaho’s peers in attracting those buyers – states like Texas, Florida, Tennessee – often boast zero income tax. Idaho does have a state income tax (roughly 6% top rate in this period), but its property taxes are relatively low and there’s no estate tax.
Compared to California (13% income tax and hefty property taxes), Idaho looked appealing. The 2017 Tax Cuts and Jobs Act’s SALT cap effectively penalized staying in high-tax states, and both Arizona and Idaho saw an influx of people looking to reduce their tax burden.
2018–2023 vs. 2008–2017: Key Differences
How do the recent trends among Idaho’s $500K+ earners compare to the previous decade’s (2008–2017) homebuying patterns? In a word: contrast. The late 2010s/early 2020s luxury boom looks very different from the late 2000s/early 2010s, which were defined by the housing crash and slow recovery.
Market Conditions
The 2008–2011 period was marked by a housing downturn. Idaho’s home prices plummeted after the 2007 bubble burst, and even wealthy buyers were cautious. High-end sales virtually disappeared in the aftermath of the crash – as noted, only one $1M+ home sold in Ada County in all of 2010.
By contrast, 2018–2021 saw an exuberant upswing. Home values not only recovered but soared well past their mid-2000s peak, reaching all-time highs. Idaho’s House Price Index appreciated by roughly 173% from the post-2008 trough to 2022, far outpacing the national average.
Different Buyer Profiles
In 2008–2017, a significant portion of high-income homebuyers in Idaho were local or regional. Many were long-time Idaho residents (business owners, physicians, etc.) or retirees moving from neighboring states. The out-of-state newcomers in that era were often retirees or lifestyle movers seeking a quieter life, typically older and paying less for homes than today’s newcomers.
Fast forward to 2018–2023, and the demographic of incoming wealthy shifted younger and more career-driven. They were tech entrepreneurs, remote executives, and high-earning professionals in their 30s-50s. The scale of out-of-state wealth also grew in the recent period. During 2008–2017, Idaho was still somewhat under the radar; during 2018–2023 it became a top destination for elite earners leaving the coasts.
Changed Motivations
A decade ago, in the shadow of the Great Recession, even rich households were relatively cautious. Many were recovering from stock market losses or had seen home equity evaporate in 2008. Purchasing decisions in 2008–2012 were often driven by practicality and value.
In 2018–2023, the motivations skewed more optimistic and lifestyle-oriented. With booming stock portfolios (at least until late 2022) and strong income growth, high earners felt confident to make big real estate moves. They bought homes not out of necessity but desire – for lifestyle upgrades, more space, better quality of life.
The pandemic also added an element of urgency (“you only live once, might as well live where you love”). So, while earlier in the 2010s the vibe was still somewhat cautious and recovery-focused, by the 2020s it was bold and proactive among wealthy buyers.
Housing Supply Shifts
The earlier decade began with an oversupply of homes (leftover from overbuilding in the mid-2000s) which kept prices in check until excess inventory was absorbed. High-end subdivisions in Boise stalled out around 2009, and spec mansions sat on the market.
In 2018–2023, Idaho faced the opposite problem: under-supply. Years of population growth and under-building created a shortage of homes for sale, especially in the luxury segment where building custom homes can take a year or more.
This scarcity meant that when demand spiked, there weren’t enough properties, driving prices up sharply. Wealthy buyers often had to build new (which many did – custom home builders in Boise, Coeur d’Alene, and Sun Valley saw a backlog of projects).
Conclusion
From 2018 through 2023, Idaho’s housing market has been indelibly shaped by households earning $500,000 and above. These top earners have predominantly focused on buying upscale, owner-occupied homes – often larger and more feature-filled than ever – in Idaho’s most desirable locations.
Boise’s luxury suburbs and the state’s picturesque resort towns have been the primary beneficiaries of their dollars. Many have upsized to sprawling homes to accommodate remote work and recreation, effectively turning their residences into all-in-one live-work-play environments.
A number of older affluent sellers took the opportunity to downsize amid high prices, though many ultimately chose to stay put and enjoy rising home values. High-income buyers largely stayed in Idaho and expanded their real estate footprint, picking up vacation homes on lakes or mountainsides and even dabbling in investment properties to rent out.
Comparing the late 2010s/early 2020s to the prior decade highlights just how extraordinary recent years have been. Idaho went from a post-recession hidden gem to a buzzy destination for the wealthy. The cautious optimism of the 2010s gave way to the feeding frenzy of 2020–2021, followed by a moderation in 2022–2023 as markets cooled yet remained elevated.
As of 2023, the frenzy has eased, but Idaho’s high-end home landscape has been permanently altered. There is now an established base of high-income residents who have made Idaho their home (and often own multiple homes within it).
In essence, Idaho is no longer a frontier for bargain-seekers; it’s a settlement for the affluent, with homebuying trends to match. The state’s challenge and opportunity will be balancing this influx of wealth with the needs of longtime residents – ensuring that Idaho’s growth benefits all. But one thing is clear: the era of Idaho flying under the radar is over, and its real estate market – from starter homes to mountain mansions – will never be the same.
References
- The million-dollar question – Lewiston Tribune / Idaho Statesman
- How Do Taxes Affect Interstate Migration? | State Migration Trends – Tax Foundation
- Recent Homebuying Trends of $500K+ Earners in Arizona – Home Stratosphere
- Raising the SALT cap is a gift to high-tax states – Reason
- The Californians Are Coming. So Is Their Housing Crisis – Cross Lake Partners
- The Typical Income of a Boise Homebuyer Rose 24% During the Pandemic – Redfin Corporation
- Boise Ranks No. 1 for Luxury Home Price Appreciation in the U.S. – Mansion Global
- This Surprising ‘Quiet Luxury’ Hot Spot Is No. 1 in the Nation for High-End Home Prices – Yahoo Lifestyle
- The Great Western Expansion: Utah, Idaho and Nevada Cities Lead Luxury Segment of Emerging Housing Markets Index – Mansion Global
- Coronavirus Will Hit Small Towns Hard As People Leave Cities – BuzzFeed News
- Idaho’s Baby Boomer Real Estate Trends in the Last 5 Years – Home Stratosphere
- Out-of-state capital flowing into Boise’s hot housing market – BoiseDev
- Luxury Home Prices Hit All-Time High As Record Share of High-End Buyers Pay Cash – Redfin News
- Luxury-Home Sales Sink Record 45% to Near-Record Low – Redfin News
- Since pandemic, Montana, Idaho have surpassed California as most unaffordable states for homebuyers – Idaho Capital Sun
- Home Buyers and Sellers Generational Trends – National Association of Realtors
