Rising housing costs in Coeur d'Alene moving people out

While there are many similarities between Northern Idaho and Eastern Washington, each have very different issues behind their housing crisis.

Many blame the number of people moving to places like Coeur d'Alene for the rise in housing costs.

"I have friends already leave the areas for various reasons," Tyann Bjorkman said. "They couldn't find housing. They were out priced. They couldn't live here anymore because they couldn't afford to live here."

The Bjorkmans have called Coeur d'Alene home for many years. It's a place where they want to raise their four kids, but the current housing market could hinder their plans.

"Everything has at least doubled in price," Tyann said. "We really wanted to buy land, and the cost of land here has skyrocketed."

High-interest rates made it hard to sell their home, but it is also hurting them in their search for a new one.

"What we could afford two years ago we can't afford new because of those interest rates, so now were in the position where we need to find a rental," Tyann said.

With that route turning up dry as well, the Bjorkmans are feeling stuck and forced to consider a larger move to a different area.

"We're living in limbo right now and it's very uncomfortable," Tyann said.

Countless others are in the same boat.

Lindsey Allen has been working in the real estate space in Northern Idaho since 2008 and has seen the market shift firsthand since the pandemic.

"We saw a massive influx of visitors," Allen said. "We saw a massive influx of people wanting to move here. We have defiantly seen that taper off. However, that just puts us that much further behind on housing inventory."

While Allen says the housing crisis in Northern Idaho is multifaceted, it all comes back to high mortgage rates, and in-turn, low re-sale inventory.

"The 30 year fixed rate mortgage rate is 7.29%, which is really high compared to where we were two years ago," Allen said. "They don't wanna move. They don't wanna give up their rate, and so we're not putting resale properties into the market. So, we have major inventory issues and the affordability. When rates go up purchase power goes down."

Right now in Kootenai County, the average price of a home is sitting at just over $500,000. According to Allen, the average buyer supports that, but new builds could be one answer to this growing problem.

"If you are interested in buying right now, look at new construction," Allen said. "There is a lot of inventory out there and it's new. You're not inheriting anyone else's problems and it's the most affordable product on the market right now."

Allen says leaders in Kootenai County are working to address the problem by looking into new housing projects, and new programs to save buyers money.

Knowing that if things don't change and rates don't come down, it could force more and more middle class people who play large roles in the community out.

"If you just looked at everything on paper, you could probably say we are creating a whole new generation of perpetual renters," Allen said.

[tparbs]

It's amazing to me how many people did not see this coming. The lockdowns and mandates had severe consequences then, now, and well into the future. The repercussions may not have even fully been realised yet.

[MrPolandball]

Stop building McMansions and get rid of single family zoning

[brockreynolds]

In Kootenai county, the average price of a home is 500, 000$... here in central Missouri, you can easily buy an 1, 800 square foot, 3 bedroom home for 175, 000$.

[lisabaltzer]

I have a home on Hourglass St. in CDA. That is not a cheap area to buy a house. If you cross over into Post Falls or Rathdrum, the prices will be lower, but nothing is cheap in this area anymore.

[brockreynolds]

7.29$ interst rate is not high at all. The rates in the first half of 2021 were the lowest in 50 years!! People cannot expect that to last forever. the interest rates in 1981 were 18%!!! and guess what, people still bought homes.

[Emissary]

Already got kicked out to Texas but hey I bought a house in a year being here something I never thought possible living in cda pretty sad just had to give up family, friends and memories not to mention my sanity can’t find a single place to hike over here