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The Land Market in Idaho in 2022: Predictions & Forecasts

Published: 04-08-22 Category: Investing

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

Idaho is still considered one of America’s great frontiers, even though development has long changed the landscape.

It is still a place with an emphasis on public land, conservation, and balancing the needs of a growing population against the natural beauty of the region.

If you’re trying to buy land in Idaho, or just want to determine the merits of such a decision, this data-driven guide spells out the predictions and forecasts in equal measure.

Understanding Water Rights in Idaho

Understanding the rights afforded to potential land for sale in Idaho is very important. All states have to think about where their water comes from, but western states have to focus on water a lot more than other areas.

Water rights are a dense topic, but they are covered at length on Idaho’s state website.

In cases where boundaries aren’t clear, or where water sources are shared, it’s wise to gain outside counsel on the subject from experts that are well versed in Idaho’s ongoing water issues.

While the state’s issues aren’t as pronounced as California’s, water should be on the mind of any land buyer.

Access to water will only become more and more critical as time passes, especially when climate change concerns are added into the mix.

Land Swaps Are Tricky. Here’s Why

The land market within the state is lucrative, and structuring a good deal also means looking ahead to the future.

The land swap is a common tool that doesn’t get enough attention. Simply put, a land swap is where a city offers land it already has in exchange for land it may want.

Here’s how it would look in real-time:

The government entity has a parcel of land that has value.
The private entity has a parcel of land that also has value.
Both parcels of land have to have an equivalent value in order for the swap to take place.
The government benefits from switching one piece of land for the other, usually acting in the public’s interest ultimately.
The private entity gains access to land that would otherwise be off-limits, but they have to have something to exchange.

Land swaps are tricky, but with as fast-moving as Idaho’s market has become, they could be an overlooked place of profitability.

Sometimes it’s hard to know if a piece of land will become valuable in the future to the government at the state or city level, but it is worth adding to the analysis before purchasing anything.

Leveraging the Home Building Rush Amid Extreme Demand for Homes

The home building rush is here to stay, which is an odd thing to focus on in terms of land market trends. However, it’s all connected: without land; there’s no place to build houses. They can’t just float in space; that type of technology is still the fodder of science fiction.

Consider the crisis in motion: major news outlets are reporting that homebuilders continue to face extreme demand for homes, which in turn means developer groups are going to be hunting for the next piece of land.

Holding onto key land that is right on the cusp of the next “popular” area could turn into a very wise decision. Private deals are struck every day; why shouldn’t your future land parcel be at the top of the list?

Figure Out How Your Land Investment Will Mature Over the Years

Understanding how construction projects play into the public interest is important to land buyers, who will need to watch development for both positive and negative consequences.

Trying to decide on land is difficult when you don’t know what the government and other interests are working on.

Take, for example, the fact that environmentalists have launched another lawsuit aimed at blocking construction along US-95 near Moscow.

The legal documents spell out the full story, but it is clear that development is often at war with special interest groups that have their own agenda.

If you purchase land, where will that land be in the next five, ten, or fifteen years? Understanding how everything is interconnected is important.

Buying and Holding Land in Idaho for Future Profits

Buying land as speculation has a long and storied history, especially in Idaho. However, it isn’t as silly as it may appear at first glance.

The need for more homes, more apartments, more everything is making it clear that the value of the land will only continue to climb as demand climbs.

Why do people want to relocate to Idaho from other states? Well, people are finding that they have more options than meets the eye after the Great Resignation.

Some companies, like Micron, are actively recruiting talented employees to Idaho directly, while other companies’ relaxed work from home policies encourage relocation.

People are finding that they now have space to live where they want, whether closer to family or exploring new opportunities. If the cost of living decreases with the decision to move, that’s even better.

Making the Right Land Play

Ultimately, buying land is more about trying to figure out what the best play would be given the information at hand.

The law of imperfect information rears its ugly head best in financial transactions; after all, no one can know everything.

However, some ending questions to give you food for thought:

Are you looking for land that is full of natural features, like heavy woods and fish-stocked ponds?
Do you have the ability to preview the land before purchase? Boots on the ground > viewing the property just online.
The right piece of land fits into the budget. Yes, unicorns will be right outside the budget and look perfect. Don’t fall for it.
Hit the ground with a business plan in mind, rather than buying a blank piece of land and stumbling forward.
Consider state-level restrictions and guidelines, such as conservation needs, water rights, and restricted crops.

Idaho’s land market is strong, especially as more people decide to make the state their new home. It is wise to buy in Idaho to capture a slice of the explosive growth, but caution is still preferable to quick actions without a solid plan in place.

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