At the end of the third quarter, employment growth was 2.5%, down from 4.7% from a year earlier.
Even with the lower employment growth, the area shows a net gain of 5,600 jobs. At the same time, layoff continues at major employers such as Albertson's and Hewlett-Packard, while Micron Electronics has a hiring freeze, which is hindering employment growth, according to the report.
Sales of affordable homes are up 22%, which is taking its toll on the apartment market.
"Demand (for apartments) is receding at a rapid pace," shows the report. There was a negative absorption of 782 units in the third quarter, compared with a positive absorption of 372 units during the same period of 2000.
"Vacancy rates are rising in response to the drop in demand," Hendricks & Partners notes. "The overall average vacancy rate jumped to 7.4% in the third quarter of 2001 form 2.1% in the third quarter of 2001."
Vacancy rates are rising across all submarkets, especially in North Boise, where the average vacancy rate increased to 9.2% from 1.3% and in the South/Southeast submarket, where the average vacancy rate rose to 10.5% from 3.3%. Still, the average monthly market rent is at $654, up from $634 a year ago, according to Hendricks & Partners.
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