Economy: Growth Remains Steady
Boise continued to post solid economic performance in Q3 2026, leading all tracked markets with population growth of 2.3% year-over-year (YOY). Median household income climbed 5.0% YOY to $96,600, supporting consumer spending and economic activity. Nonfarm employment expanded to 417,800 jobs, up 0.8% YOY, while healthcare employment grew to 61,100 jobs. The unemployment rate remained at 3.4%, below the U.S. rate of 4.2%.
Supply & Demand: Record Absorption Drives Stability
Boise's multifamily market remained healthy in Q3 2026 as renter demand continued to absorb recently delivered inventory. Net absorption totaled a record 2,314 units year-to-date (YTD), already surpassing the previous annual absorption record with one quarter remaining in the year. Meridian and East Boise led leasing activity with 956 and 420 units absorbed YTD, respectively.
Record absorption and slowing deliveries supported market fundamentals in Q3 2026. Stabilized vacancy measured 4.3%, while unstabilized vacancy remained more than 300 basis points (bps) below recent peak lease-up levels as newly completed communities continued to lease up. Deliveries totaled 572 units through Q3, while 1,296 units remained under construction as recently completed communities continued to advance toward stabilization. Record absorption and slowing deliveries have helped the market absorb the recent supply wave while supporting continued rent growth and reduced concession activity.
Pricing: Rent Growth Persists
Concession activity remained well below prior-year levels in Q3 2026 as leasing conditions continued to improve across the market. The share of properties offering concessions fell to 4.7%, down 740 bps YOY, while overall concession packages fell to 5.5% of asking rent, down 120 bps YOY. As pricing power improved, average effective rent increased to a record $1,782 per unit, rising 6.1% YOY.
Discretionary properties continued to command the highest rents within the market, though rent growth remained evident across multiple asset classes. The reduction in concession activity and continued increase in effective rents suggest recently delivered communities are progressing through lease-up and achieving greater pricing stability.
