Wow! Boise is ranked #3 in USA Today’s recent list on Hottest Housing Markets! Listen in to hear Thom and Dave delve a little deeper into that and also get some great info on two of our newest listings.
Ron Wieczorek from Flagstar Bank is in the studio to talk about Luxury Real Estate! They also go into the cost of renting right now. Do you know the average rental price in the US currently? tune in to find out!
Dave Burnett: This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, also an associate broker at Core Group Realty at EXP. CoreGroupRealty.com, that's a website you can always go to 24/7. You've got insomnia, you're awake in the middle of the night, you can go to CoreGroupRealty.com and-
Thom Dallman: That's the nice thing about the internet is you can go on anytime of the day.
Dave Burnett: Exactly.
Thom Dallman: And go find houses and properties and information on real estate.
Dave Burnett: (208) 933-7777 is a phone number to contact the folks at Core Group Realty. Thom, a new week and you've got some listings to talk about this week with Core.
Thom Dallman: Yeah. As we kind of get through the summer and school starting here in the next couple of weeks across the valley. It's always good to have new listings coming on.
Dave Burnett: It is.
Thom Dallman: So, we got a new one out on, off of Purple Sage and Emmett out in kind of that Middleton Caldwell area. It's actually a Caldwell address, but in Middleton, in the Middleton area.
Dave Burnett: Funny how that's all converged out there.
Thom Dallman: Right. Isn't it crazy?
Dave Burnett: It maybe is. If you've been between Star and Middleton, if you look north, in all of those homes that have been built out there, it's crazy.
Thom Dallman: Exactly, exactly. It's never ending in the valley it seems like as far as the expansion's going and stuff like this. But we have this 2001 built house on 2.25 acres that's all set up and ready to go for horses.
Dave Burnett: Nice.
Thom Dallman: It's a fantastic horse property with full irrigation right there near their Purple Sage golf course there. It features a four bedroom, three bath, single level house, 2060 square feet. It does have an upstairs bonus room in it as well. Oh gosh. They've just updated it with granite counter tops. They've got a large barn, shop, power, water. They've got all kinds of garden boxes and garden space, a covered patio. It's just really one of those homes that you can just bring your horses and get all set up. It's total turnkey, ready to go.
Dave Burnett: Set and ready to go. Yeah. You say it's a four bedroom home?
Thom Dallman: Four bedroom, three bath, single level with an upstairs bonus room. 2060 square feet and it's priced at $439,900 right now.
Dave Burnett: Which really for two and a half, over two acres. That's a pretty good buy.
Thom Dallman: Yeah. And to have it all ready set up for horses with the fencing and the irrigation and all that stuff. I mean, it's just ready to go.
Dave Burnett: If you've got the horses ...
Thom Dallman: If you've got horses and cows or toys or whatever you want.
Dave Burnett: If you don't have horses, we can find somebody to sell you a couple.
Thom Dallman: Yeah, exactly. Exactly. But the address is 24945 Harvey Road. If you wanted to go look at it, go to our CoreGroupRealty.com page. Look at featured listings and it should be featured right there.
Dave Burnett: Perfect.
Thom Dallman: Also, on there is our manufactured home that we have over here in Meridian on 700 East Fairview Avenue, unit 140. We just did a price improvement on it. It's $107,500. A great opportunity to get a starter home. It's got beautiful hardwood floors to it. We just had our weekly office meeting at it, or at the house this week and it's a beautiful, beautiful home set up really well. It's kind of set back a little bit on the lot so you don't really have your neighbors too close by. And this great park that includes all kinds of community center and play areas. It's a super desirable area right there on, right off of Fairview in Meridian. So, anybody out there looking for a three bed, two bath, 1500 square foot starter home, $107,500. You can't beat that price.
Dave Burnett: Nice. You can always call (208) 933-7777. Set up a viewing, a visit. Come talk about it as well.
Thom Dallman: Yeah, for sure. Come and talk to us about ... I mean we're a hot market right now. USA Today just released on July 31st an article that talks about the top 10 hottest housing markets in the country. And I'm happy to report that we ranked number three. It seems like we're always right up there at the top. We're right there along with Omaha, Nebraska, Grand Rapids, Michigan. We've talked about that before. Shawnee, Kansas is another hot market.
Dave Burnett: Isn't it interesting the names that are coming up on that list as hot marketplaces. They're, I guess what you'd consider smaller markets in the Midwest, away from the coast. And I find it fascinating.
Thom Dallman: Yeah, it's people are kind of ... We've talked about it before. Ron's talked about it during his segments, just about the fact that people are trying to ... A lot of the people are moving away from the big metro cities to get into the rural areas to have a better lifestyle, to be able to bike to work and do things outdoors and-
Dave Burnett: What also stands out to me as I look at that list, they're not warm climate cities.
Thom Dallman: Nope. They're really not.
Dave Burnett: They're cities that have winter.
Thom Dallman: The four seasons. Arlington, Texas, however, might not.
Dave Burnett: Okay, we won't talk about Arlington, Texas.
Thom Dallman: That might not be there. Colorado Springs is on there in Colorado. So yeah, we continue to be just a hot market and lots of activity going on. Lots of buyers out there with such a lack of inventory. So, we talk about that all the time too. The fact that you can ... You know, it's a sellers' market still and we still have such low inventory and still have so many people moving into town wanting to purchase properties and a hard time finding them for them. Especially in those price points under $300,000, it's a real struggle.
Dave Burnett: Which by the way, again, and we mention this every two or three weeks and I'll mention it again. One of the reasons, just one of the reasons to have a good real estate agent, somebody who is willing to invest the time because with a marketplace the way it is, properties come and go very quickly.
Thom Dallman: They do.
Dave Burnett: And if you have a real estate agent that's sleeping on you for a couple of days, they may miss the perfect home for you.
Thom Dallman: Exactly.
Dave Burnett: So you can always get that at Core Group Realty at EXP. That's agents that will work for you. And when I say that, they'll work for you, I know there's TV stations and everybody that has that slogan, but your agents really are trained to work for the customer to find those homes.
Thom Dallman: Yeah, we try to make sure that our agents are there for our clients, always ready and available, always watching the marketplace and making sure that they're getting the listings to our clients and getting them out there right away to see these things.
Dave Burnett: Now. Just to get out there because they do. I mean, I don't know if you know right off the top of your head what the average turnaround time on a home that's listed for sale is in the valley, but it's not very long.
Thom Dallman: No, no. I think our average days on the market right now are around 27 days.
Dave Burnett: So less than a month.
Thom Dallman: Yeah. That's just, that's taking into account those million dollar properties that take a year to sell. But yeah, for the most part things are selling within a couple days, if not same day that they get listed.
Dave Burnett: In fact, a bigger problem might be is how do we get out of the house so quickly?
Thom Dallman: Exactly.
Dave Burnett: Once people- A couple of things you'll want to do is one, make sure you're pre-qualified with a lender. And then two, set up a time to come and talk to one of the folks at Core Group Realty about what your needs would be for a home. What you're looking for.
Thom Dallman: Yeah. We love sitting down and having those free consultations. Just what are you looking for? What, when it comes to a home, is going to make you so happy that you're just going to love it? And going out there and searching for it and finding that, just that right property.
Dave Burnett: The funny thing is with the two listings you list today, you're at either end of the spectrum, an entry level home, prebuilt home, or one that's been around since 2001 that has two and a half acres out in the country. And you're kind of on either end of the spectrum there.
Thom Dallman: Either end, exactly.
Dave Burnett: And that's something that Core Group Realty at EXP can do for you and that is to find those homes. If somebody is wanting to set up that time to get together, how did they do that Thom?
Thom Dallman: Just give us a call. The phone number is (208) 933-7777. You can go to CoreGroupRealty.com and contact us through there, or email info@CoreGroupRealty.com as well. And we've got people standing by.
Dave Burnett: Excellent. And if you want to contact Thom, ask him questions about this show or about Core Group, you can always do that through the website as well, CoreGroupRealty.com. It's the Idaho Real Estate Buzz, where we get together each and every week. We talk about things, all things real estate and we're going to be talking to Ron once again, coming up with Flagstar Bank here in just a few minutes. Find out what he has on his mind and what's happening.
Thom Dallman: You know, he's got lots.
Dave Burnett: He always comes in with a stack of stuff. So we'll talk to Ron in just a few minutes. It's the Idaho Real Estate Buzz, being brought to you by the folks at Flagstar Bank and at Core Group Realty at EXP. Call today, (208) 933-7777. Find out why they say you get more with Core.
Dave Burnett: This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, associate broker at Core Group Realty at eXp. CoreGroupRealty.com, that's the website. (208)933-7777, that is the phone number for you to call. We get a chance to talk to Ron from Flagstar bank each and every week, and we're going to switch gears.
Thom Dallman: We're going to talk about luxury homes, I'm excited.
Dave Burnett: Yes, we're going to luxury.
Thom Dallman: You gave us a preview.
Ron Wieczorek: Lap of luxury.
Thom Dallman: You gave us a preview at the break.
Ron Wieczorek: I tried to get a hold of Robin Leach to see.
Thom Dallman: We can't get him on the line.
Dave Burnett: Yeah, the problem is Robin died several years ago, so that's probably what slowed you down.
Thom Dallman: That would probably be why.
Ron Wieczorek: That's probably why.
Dave Burnett: Exactly.
Ron Wieczorek: My reference, if you're old enough, there used to be a show called Lifestyles of the Rich and Famous that Robin Leach hosted.
Dave Burnett: Yeah, so some people remember that. But nonetheless, we are going to talk about luxury, and there is such a thing as a luxury home.
Ron Wieczorek: Yes. So a luxury home is defined in the United States as being, you take all the sales in the market and you chop off the five top 5% sale prices. So it doesn't matter what market is, like you mentioned in the break, it's different for Pocatello than it would be for San Jose, or New York city, or Miami.
Dave Burnett: Okay.
Ron Wieczorek: So you take the top 5% of the most expensive homes, and that's considered a luxury home. And it's a moving target on what that means as far as a price point. So I'm going to go to quiz time real quick.
Thom Dallman: Oh boy, here we go.
Ron Wieczorek: And excluding New York city, what do you guys think of nationwide as far as being a luxury home? What price point?
Dave Burnett: Oh I thought you were going to ask marketplace, see because when I thought luxury homes, I started thinking about these places like in Miami.
Thom Dallman: That's what I was kind of thinking of too.
Dave Burnett: On the water.
Thom Dallman: On the water with-
Dave Burnett: ... at the dock and all of that. But I would-
Thom Dallman: Something you pull your yacht up to.
Dave Burnett: Exactly.
Ron Wieczorek: These guys are fantasizing now, you're off. We don't have that much time, what's the price here?
Dave Burnett: I'm going to have to guess, well it's going to be more than half a million. Wouldn't it be more than half a million?
Ron Wieczorek: Top 5%, it better-
Thom Dallman: I was going to venture to say like five million.
Dave Burnett: Oh, okay.
Thom Dallman: There's some amazing homes out there for five million.
Ron Wieczorek: Now keep in mind, now I'm going to prop you up Dave, and I'm going to pull you down, because for every-
Dave Burnett: Three million.
Ron Wieczorek: ... for every condo in Miami that's right on the water, there's somewhere in Topeka, Kansas that-
Thom Dallman: Yeah, that's true. That's true.
Dave Burnett: Little house on the Prairie. So I'm going to say about a million.
Ron Wieczorek: Okay.
Thom Dallman: Yeah, I'll go with a million too.
Ron Wieczorek: A million as well, or a million-
Thom Dallman: A million and a dollar, price is right.
Ron Wieczorek: 1.64 million is considered a luxury home in the United States.
Dave Burnett: That was my second answer.
Ron Wieczorek: And well, you'd of been right. And I'll just skip ahead, where do you think it is in Boise?
Dave Burnett: Oh, in the Boise area? It's going to be under a million. Am I right? Am I wrong? Under a million. Thom, you do this for a living.
Thom Dallman: I was going to say I'll probably venture to say probably 800,000 to a million.
Ron Wieczorek: A year ago you'd have been right.
Thom Dallman: Okay.
Ron Wieczorek: Right now it's right at $1 million.
Thom Dallman: Wow.
Ron Wieczorek: And when I say a year ago you'd be right, it's going to go against everything I'm talking about as luxury home prices are on the downswing.
Dave Burnett: So what you're saying is take New York City and Boise out of the equation.
Ron Wieczorek: Oh wow.
Dave Burnett: Wow. How about that?
Ron Wieczorek: No, I don't know if you do that. You're taking New York City out not because it's higher price now, or as far as historically higher price, it just has-
Dave Burnett: Expensive property.
Ron Wieczorek: A lot of places that will take you off the grid a little bit, or skew the numbers. It's like saying the average reader of The Wall Street Journal makes $1 million. And then you find out Warren Buffet and Bill Gates reads The Wall Street Journal, and there's a lot of people that don't make a lot of money reading The Wall Street Journal. But that's what they like to tout because it makes them sound like all their readers are millionaires. So it's kind of that rationale as you pull out that New York city just because those prices on the higher end-
Dave Burnett: Stupid expensive.
Ron Wieczorek: ... are stupid high, right. So my point is luxury homes are on the downswing, and there's a lot of reasons for that. One of the reasons for that is tax reform. When we went through the tax reform, they put a cap on the mortgage interest write off that you can get. So the knee-jerk reaction to a lot of people were to stop buying, or to see at least how that's going to shake out. And to stop buying the homes in the higher price points because they were no longer seeing the benefit on the higher end of that mortgage interest write off.
Dave Burnett: To write that off, yeah.
Ron Wieczorek: So that was one reason of the slow down for those higher priced homes. I will say, I'm talking about the luxury homes being in the top 5%. Now let's go to the lower 95%. The lower 95% has rose over 3% over the past year. So you're only talking about the only decline in price points over the past year has been in those luxury home prices. And everywhere else you're seeing that average home go up, and up, and up. Especially at the lower end, the lower end is really bringing up that average.
And I talk about that probably way too much, about where that struggle is at the entry point. But back to the tax break, so it really got hit hard at the beginning right when the new tax law came out, you saw that number take a devastating blow. So for it to be down only 2%, when I'm saying it's on a downswing, it's only down 2%.
Dave Burnett: Oh okay, that's not a plunge.
Ron Wieczorek: It's not a plunge.
Thom Dallman: It's not a plunge, nobody panic.
Ron Wieczorek: It was a double digit plunge at first. And now what people are seeing is a year-and-a-half later, or whatever the timeframe is, they're seeing that as a result of the new tax reform, they've seen more money in their paycheck. And so that mortgage interest write off all of a sudden becomes less important to them because now that they look at it, they're saying, "Well now I have more in my paycheck, so I can afford the luxury home despite if there's a cap on that price tag." So that's why we've seen a little bit of that rise back to only a 2%. But it is telling still that that's still a minus number. That's the only minus number you see on the whole charts, is that in the luxury home. So it's telling me a lot of things.
It's also telling me that one of the things that's being hurt the most by this, and we see this Exodus in Boise, we see a lot of people coming in from other states. Now Idaho is not, we do have an income tax. So they're not coming there because it's income tax free. But we do see a lot of the higher tax states, like Massachusetts, California are the two biggest, where you just see that market just the bottom falling out of it, at the higher end. Because the high earners are saying, "Okay, I do have more in my paychecks, and I can write off less money. Where can I take refuge and make more bang for my buck?"
So you're seeing states like Florida, Washington, and Nevada really thrive because of ... at that price point. Again, I keep saying at that price point, because they have the no income tax and people are really taking advantage of that. They're saying, "Well I'll not only get more in my paycheck, but I'll also have the no income tax, so I'll have even more in my paycheck." So that frees up money at that higher end. So that's what we're seeing a lot of it as an industry.
Now I'll say this as well, I mentioned Boise and I kind of gave away where I was going with this, is last year the average luxury home in Boise was 800,000 and change. And now it's near a million. We've seen a 17.5% increase in the luxury home market.
Dave Burnett: Wow.
Ron Wieczorek: Which is, we are ... like when you have a little, all the dots on a chart of where that trend is going, Boise's one of three that has, it's just such an outlier. So I keep talking about whether it's the entry level market, whether it's the mid tier market, that Boise is still kind of an anomaly and insulated from a lot of those numbers and some of those threats you see outside. We're still just seeing a lot of that traffic and insulated from a lot of that recession talk.
Dave Burnett: Now maybe because I live in the projects or something, I'm not sure where are these million dollar homes at? Thom are they in the foothills or are they ... I did take a trip to Bogus not long ago, there's some big homes up there on the road to Bogus. Where are these homes at?
Ron Wieczorek: Thom, that's a good question for you.
Thom Dallman: Let me pull it up. I can tell you. They're all over the place.
Dave Burnett: I mean I'm always surprised when I see a home hitting half a million dollars. I'm thinking, "Wow, that's a nice home, half a million." So the million dollar homes-
Thom Dallman: Well if you think about the million homes over in Eagle, what does that Renovare , no not Renovare. That subdivision that they just put in down by the river-
Dave Burnett: Oh, that's right river property's going to be-
Thom Dallman: Yeah, Renovare. Renovare subdivision where they have these million dollar luxury homes, basically you put in every single amenity into them. They're smaller homes, but they're beautiful brand new homes that Idacal is building over there. So I mean there is a perfect example-
Dave Burnett: Because they're on the river, that property, just the lot itself is going to be up there.
Ron Wieczorek: I mean we toured some of those homes in the Idacal during the parade-
Thom Dallman: During the Parade of Homes. In case you don't know, that's my favorite time of the year, spring Parade of Homes.
Dave Burnett: Better than Christmas.
Ron Wieczorek: So they're out there, and they're popping up more. And it's funny that they're called Idacal because they're seeing California ... California style, right?
Thom Dallman: Started out in California and they came up here to start building.
Ron Wieczorek: In Boise, there's two markets that are just an anomaly. Boise's one of them with that. And Charleston, South Carolina is the other one. Luxury homes are up 40% in that area, and they're above 2.3 million for a luxury home.
Dave Burnett: Wow.
Thom Dallman: Wow.
Ron Wieczorek: So times are good in Charleston. Why I say that's an anomaly is because all the other places where you see that high increase are places like West Palm Beach, Florida, St. Petersburg, Florida, which St. Petersburg is at Tampa area. And they're all places that I've talked about that have that shelter, that no income tax shelter. So that makes sense to me. And they're also on the water. Near an ocean is pretty popular, and you're going to see pricier homes there. But we're still talking about a percentage. So anytime it increases, it's increasing over what it was before anyway.
So those places don't surprise me as much because people will take refuge by the stats. But Boise is one of those places that we continue to talk about, and continues to pop up on people's best place to live for outdoor, best place to live ... you name it, it's on a list.
Thom Dallman: USA Today just released an article on July 31st that put us number three as one of the best cities ... what was it? One of the top 10 hottest markets right now.
Ron Wieczorek: Yeah.
Thom Dallman: In the US.
Ron Wieczorek: And I read-
Thom Dallman: Number three, Boise.
Ron Wieczorek: There was a Wall Street Journal article yesterday that named three places as the hottest markets. And they were, one of them was, and I've talked about this before, Grand Rapids, Michigan was on there, and Boise, Idaho. And Grand Rapids is one of those millennial destinations because there's still extremely, extremely friendly to the millennial budget. And as far as you know what Boise's doing is kind of restructuring themselves with the green areas, and outdoorsy, and bike friendly, et cetera. So we've kind of from 10 years we've revamped kind of our image in that regard.
Dave Burnett: Absolutely. Ron, if somebody wants to get a hold of you at Flagstar Bank, maybe they want to take out $1 million home loan. If they want to do that, how do they get a hold of you?
Ron Wieczorek: If they want to take out $1 million home loan I have my phone on me, right now.
Thom Dallman: I have pulled up 103 listings right now that are $1 million or more. So we have listings for you. In Ada and Canyon County we have 103 million dollar or more listings right now.
Dave Burnett: Thom would be more than willing to sell it, Ron would be more than willing to finance.
Thom Dallman: I would be more than willing to show you and help you find it.
Ron Wieczorek: And my stats are right. My cell phone number, (208)869-9154.
Dave Burnett: Flagstar Bank, equal opportunity lender. Of course one of the sponsors of the Idaho Real Estate Buzz, along with the folks at Core Group Realty. Call them today, (208)933-7777. Or you can always go to the website, CoreGroupRealty.com. Find out why they say, "You get more with Core."
Dave Burnett: This is the Idaho Real Estate Buzz! He is Thom Dallman. He's the co-owner, associate broker, at Core Group Realty at eXp. CoreGroupRealty.com. Here's the phone number to call: 208-933-7777. You can always call and get in touch with Thom or one of the agents at Core Group Realty at eXp.
Thom Dallman: Be more than happy to help you out with whatever you need.
Dave Burnett: Well, Ron is back again.
Thom Dallman: Yep.
Dave Burnett: We're going to give him another segment here.
Thom Dallman: You've been doing this a lot, lately.
Ron Wieczorek: It's like a trap.
Thom Dallman: He just has such a fount of information, and he comes in with all these papers, and so, I'm like, one of these days, we're going to help you get through all those pieces of paper.
Dave Burnett: And we got a call from his office there at Flagstar, and they said, "Could you keep him a little longer with you?"
Thom Dallman: Exactly.
Ron Wieczorek: That's probably true. That is ... They're getting a lot of work down right now, with my absence.
Dave Burnett: While you're out of there. Want to take about taking two steps forward and three steps back, if you want. I guess this comes down to talking about renting versus buying, and how it used to work, and how things, the trends, kind of are now.
Ron Wieczorek: Yeah. So the rental market's hot. If you're an investor, and you have deep pockets, you're seeing that you're buying and the demand for rental homes, or multifamily homes, has surged. The numbers really bear that fruit. There's a 15% jump from 2017 to 2018 in apartment transactions, which totaled 168 billion dollars worth of activity. This is in the U.S.. There was 290,000 multifamily units completed in 2018, and 2019's on track for the same exact number.
That shows that these investors are seeing a lot of value, and we see it here in the Treasure Valley. We see apartment complexes popping up and opening their doors-
Dave Burnett: Lots of them.
Ron Wieczorek: ... and not having high vacancies. It's not that they're just opening a product up and waiting for the door to be knocked on. They're full immediately. So young adults have driven up that number among growing levels of debt. We've talked about student loans. We've talked about Americans being Americans. You know? We haven't really learned our lesson-
Dave Burnett: No.
Ron Wieczorek: Not at all. Every time I talk about debt, Dave's eyes light up.
Dave Burnett: Full disclosure. A couple of kids that belong to me, I mean, they've driven up student debt, and the credit cards. It's easy. There's always an emergency to use a credit card for.
Ron Wieczorek: Yeah, right. It's not real money.
Dave Burnett: No. It's not really money, so it's easy to do, even though I'm preaching at them against it. But we, as Americans, have not learned our lesson.
Ron Wieczorek: It's showing in the numbers. The vacancy rate for rentals a decade ago was at eight percent. Right now, what do you think that vacancy rental ... And it's not stupid low. I'll give you the hint. But it's lower than-
Dave Burnett: It's lower than eight.
Ron Wieczorek: ... lower than eight percent. And that's with a lot more inventory-
Dave Burnett: ... six.
Ron Wieczorek: That's with a lot more building going on.
Thom Dallman: I thought I heard it was six.
Dave Burnett: I'll go with 6.5.
Ron Wieczorek: 4.8.
Dave Burnett: Oh!
Ron Wieczorek: Vacancy for rentals is at 4.8. It shows that, like I said, these-
Dave Burnett: That's low, though!
Ron Wieczorek: Oh, it's very low. Yeah. That eight percent was even in a desired, right? Because if you have an apartment complex, and you have eight percent vacancies, you're still doing very well.
Dave Burnett: One of the questions I have for you, Thom, and I know we've talked about duplexes, a duplex or a four-plex. Are there many of those out for sale anymore? Or people just hanging onto them because they're a huge investment?
Thom Dallman: There's a lot of four-plexes being built right now, throughout the Treasure Valley. They're doing a lot of infills, taking-
Dave Burnett: But existing ones for sale, not many?
Thom Dallman: I haven't actually looked at it in a little bit, in a while, so let me actually pull it up and see what we got while you guys talk amongst yourselves-
Ron Wieczorek: While he's pulling that up-
Thom Dallman: Yeah.
Ron Wieczorek: Talk amongst yourselves. I'll give you a topic.
Thom Dallman: Talk amongst yourselves.
Ron Wieczorek: So not only the vacancy rates are low, but some of the younger folks, they're really catering to them when they build some of these new complexes, the commercial size. They're really building around amenities to attract. Pet friendly's a big one. They make them pet friendly. They have bigger common areas that will encourage connectivity, you know, wifi and more technology-based. And then they have various parking features, which is big. What's becoming real big right now is electric charging stations. They'll set them up with electric charging stations, and that's really appealing to what's going on in the younger demographic, to kind of keep them into the rental mode. It gives them that flexibility.
But on the flip side of that, and with all that good comes a lot of bad. What's happening is the U.S. rent prices are shooting up tremendously. The national ... What do you think the average for a one bedroom is in the United States? One bedroom to rent?
Dave Burnett: To rent, in the United States?
Ron Wieczorek: In the United States.
Dave Burnett: It's going to be-
Thom Dallman: That's a tough one.
Dave Burnett: Now, I'm hesitant to say. At one time, I would have said 1200 bucks a month, but I bet it's closer to two grand a month.
Ron Wieczorek: You were closer on your first number. One bedroom. One bedroom. One-
Thom Dallman: I'm guessing $1500-
Ron Wieczorek: 13 and a quarter. That's for a one bedroom.
Thom Dallman: Okay.
Dave Burnett: For a one bedroom-
Ron Wieczorek: We're not talking ... That's me, myself and I, right? My mom won't agree with this, but if you have a girlfriend, or, you know, I'm married, so I won't. But I'm just saying that to try to defray the costs a little bit. But a national average for one bedroom is 13 and a quarter.
Dave Burnett: That's crazy.
Ron Wieczorek: Now, the national average for a rent, just of a normal rental, is over 1600 dollars. So when we start looking at the math on what the payment is to buy a home, it's near that or lower than that in a lot of cases. And now you have all the benefits of buying.
Dave Burnett: So if you've been doing what dad always told you to do, working hard to save up money for your down payment to get into a house, you're going back ... It truly is two steps forward, three steps back.
Ron Wieczorek: Yeah, that's right.
Thom Dallman: Yep. And just an FYI, to answer the previous question, there's currently 38 four-plexes available to purchase.
Dave Burnett: 38 of them.
Thom Dallman: 38. This is in Ada, Canyon County, and they range from, lower price point is $350K, all the way up to $679K.
Dave Burnett: Okay. And those would be four-plexes-
Thom Dallman: Those are four-plexes, yeah.
Dave Burnett: ... so if it was one of those situations where you lived in one, and rented out three, not a bad investment.
Thom Dallman: Right.
Ron Wieczorek: I will satisfy you here, Dave.
Dave Burnett: Okay.
Ron Wieczorek: Because you guys were throwing some pretty big numbers at me, or thinking some pretty big numbers. We'll talk about the big spots. We'll talk about New York City. What a one bedroom costs in New York City to rent, that's $3300. So that's where you get a lot of those big numbers. San Francisco, just take a stab at that number, one bedroom to rent?
Dave Burnett: It's going to be over two grand.
Ron Wieczorek: Oh, it's well over two grand.
Thom Dallman: I'm going to say five. Five thousand.
Dave Burnett: I don't know.
Ron Wieczorek: $3800.
Dave Burnett: $3800? For a one bedroom in San Francisco?
Ron Wieczorek: For one bedroom.
Dave Burnett: That's more than New York City!
Ron Wieczorek: Yeah. It is bigger. I mean, there's a lot of activity-
Thom Dallman: Yeah. I heard San Francisco has no expansion, no ability to expand, so-
Dave Burnett: There's nowhere to go but up.
Thom Dallman: Everything's getting so priced out there.
Ron Wieczorek: So priced out there, and there's just so much available, as far as, even entry level jobs in the tech industry are very high paying for us. But when you're out there, and your rent's $3700 or $3800-
Dave Burnett: For a one bedroom apartment, yep.
Ron Wieczorek: ... then you're starting to really calculate. It sounds like a great deal, and it's a great experience. I'm not saying don't do that, if you have the opportunity. But it's not like you're going to go out there and become a millionaire. You may make 200 grand, or 180 grand, a couple years out of college or with some kind of training and background, but at the end of the day, you'll start crunching the numbers and find out that you don't have a whole lot. Because a night out on the town isn't cheap, either.
Dave Burnett: No, it's not.
Thom Dallman: No, it's not.
Dave Burnett: Or even just transportation or parking, if you own a vehicle. Yeah. The thought for me, the thought of writing out a check for $3500 for rent every month, it chokes me up. I can't fathom it.
Ron Wieczorek: And we can't fathom that here, period, just because it doesn't make sense. The incomes do not match what it would take to get to that point, and that's why ... Everything's relative, and you kind of take things with a grain of salt when it comes to that.
Dave Burnett: I'll come back to this point. We've talked about it before. For somebody who's a long term Idahoan and has lived here forever, that is why somebody who sells their property in California and stops by in Boise goes, "We've won the jackpot!"
Thom Dallman: Right?
Dave Burnett: "We can take our proceeds from what we sold our house, and buy something almost cash out."
Ron Wieczorek: Yeah. When a client tells me, when we're going over price and mortgage payments and rent, more often than not, I'll get a, "Wow." And I have to stop myself, and I'm like, "Is that a wow because it's low, or is that a low because it's high?" And to your point, is the wow it's high is Boise natives who've grown up here, and they're like, "Oh my gosh. I didn't expect it to be that number."
Dave Burnett: What happened? Yeah.
Ron Wieczorek: And then, someone coming from California says, "Wow!" And they're like, "That's dirt cheap!"
Dave Burnett: Yeah.
Ron Wieczorek: You know what I could do with the rest of my money? It really is very relative, and we have to keep that in mind. And studies reveal there's a direct correlation between population growth and a reduction in affordability in housing. I think that's what we're seeing right now is because we have such an expansion of our population in the Treasure Valley, that people may not be getting completely priced out, because rates are staying low, but they're starting to see less and less disposable income and shifting in their mindset of where they want to live in the Valley, and maybe pushing out a little bit, as opposed to somebody that's coming into the Valley for the first time and seeing that it's just a deal.
Dave Burnett: I think other than the North End, and correct me, Thom, if I'm wrong, other than the North End, if you took that out, in the past most areas, there's been something affordable for me in most areas-
Thom Dallman: Oh, yeah. Most areas-
Dave Burnett: The North End's always been high, but there's starting to be areas that they're just above my means.
Thom Dallman: Oh, yeah. There's a lot of those, especially over in Meridian and Eagle, along the river and stuff like that, getting super priced out right now. So-
Dave Burnett: Things, as much as a lot of natives hate to say it, things are changing in the Valley, the way real estate works.
Thom Dallman: Right.
Ron Wieczorek: Good and bad, right? I mean-
Dave Burnett: Yeah.
Ron Wieczorek: We tend to focus on what's being taken away from us, but at the same time, we see a lot of growth in the Valley, and that's contributing a lot of the other amenities that we have, and a lot of the other ... You know, whether it's social life, whether it's entertainment, a lot of that's starting to ... We're starting to see a big increase in those kind of things. And just, when I mention the bike routes, and the bigger streets, and a lot of that is being more conducive to a lot of people's lifestyle that they prefer anyway. So there is good and bad with it.
Dave Burnett: Absolutely. Ron, if somebody wants to get a hold of you at Flagstar Bank, equal opportunity lender, how do they do that?
Ron Wieczorek: My cell phone is always on me. It's area code 208-869-9154.
Dave Burnett: Flagstar Bank, one of the sponsors of the Idaho Real Estate Buzz, along with the folks at Core Group Realty. CoreGroupRealty.com is the website. You can always call 208-933-7777. Find out why they say, "You get more with Core."