While demand for rental units in eastern Idaho has steadily increased since the 2008 recession, supply has not kept pace.
Leading into 2008, rental vacancies were at an all-time high peaking at roughly 10.5 percent across the nation (Figure 1). Although more vacancies frustrate landlords who are unable to fill rentals, it creates a preferable – or buyer’s – market for consumers. Before the recession there were abundant rental options, competitive prices and space for populations to expand.
Whenever the economy takes an economic downturn, especially a severe instance like 2008, there is a stagnation in construction. Rental property construction took a huge hit during this time and almost stopped completely. At the same time many people were losing their homes and being forced into rental units. Within the first few months of 2008, rental units became a hot commodity and, as shown in Figure 1, rental vacancies drastically declined.