Although there has been a 2.1% decline in rents over the past year, most of that decline came in the early quarters. The average rent is now back at its level in the first quarter of 2001, the RealFacts survey has found. The best performance came in the one-bedroom and two-bedroom units. Studios remained unchanged, and three-bedroom units declined. The one and two bedroom units make up nearly 89% of the total rental inventory in Boise.

The average occupancy rate, according to RealFacts, remains around 90%, where it has been hovering for all of 2002. The occupancy rate has declined by more than six percentage points since its high mark in the last quarter of 2002, and has declined by 3.7% over the past year. The report states there has been little new construction of multifamily units in Boise, and surmises the decline in occupancy is due primarily to reduced demand.

Many analysts told Real Facts the softer demand has been caused by the move toward home ownership. Home prices in Boise are relatively affordable, and interest rates are low. Home ownership probably also accounts for the fact that large three-bedroom units have reported lower average rents; the families that had been renting these units find that a mortgage payment is now about the same as their rent checks.