A note to our readers…
New Two-Phase Market Report Release Starting June 2025
To get you timely data and meaningful insights, BRR is introducing a new two-phase approach to our monthly Market Report releases:
- Phase 1: Snapshots & Graphs — Available earlier (typically between the 8th and 12th of each month), this first release includes high-level graphs and market snapshots. They’re ready for you to share in your newsletters, social media, or client conversations as soon as they drop.
- Phase 2: Market Stat Sheets — By the 16th of each month, we’ll follow up with the full Market Stat Sheets. This is where we dig deeper into the trends, provide key takeaways, and offer a broader interpretation of the data.
This two-phase release schedule is designed to get you what you need, when you need it: a quick look early on and a full picture shortly after.
According to the National Association of REALTORS®, 54.9% of homeowners in Idaho have built up equity exceeding the $250,000 exemption for individual filers. Another 13.8% are over the $500,000 limit for married couples filing jointly. That means nearly 300,000 households across the state could be subject to taxes on what used to be untaxed gains.
How a 1990s tax rule became today’s financial trap
The federal capital gains exclusion was created in 1997 to help protect homeowners from taxes on profits from the sale of their primary residence. The limits—$250,000 for individuals and $500,000 for couples—were generous at the time. But they’ve never been adjusted for inflation.
Meanwhile, U.S. home prices have soared more than 260%. If the caps had kept pace, they would now exceed $660,000 and $1.32 million. In hot Idaho markets like Boise, Coeur d’Alene, and Meridian, price appreciation alone is now enough to push average sellers over those outdated thresholds.
Adding to the burden, Idaho taxes capital gains as ordinary income, with a flat 5.8% income tax rate. When combined with federal capital gains taxes, sellers may face a significant bill—sometimes without even realizing they’ve crossed the limit.
Idaho’s red-hot market triggers the “stay-put” penalty
The growth in home values across Idaho has been nothing short of explosive. According to NAR estimates, the average homeowner exceeding the exemption in Idaho stands to be taxed on $162,121 beyond the $250,000 cap. For those over the $500,000 joint limit, the average taxable gain climbs to $173,491.
These numbers aren’t just affecting high-end sellers. More middle-class owners are learning the hard way that capital gains tax on a home sale can apply to them too—particularly if they’ve owned their home for more than 15 years.
The outcome? Many are choosing not to sell. Economists call it the “stay-put penalty”—a powerful incentive to remain in place, even if it’s time to downsize or relocate. The result is a housing market slowdown, even in regions with high demand.
Projected exposure will climb by 2035
By 2035, nearly every Idaho homeowner could be facing a tax hit: 93.7% are projected to exceed the $250,000 capital gains exemption, and 68.1% will blow past the $500,000 mark. In short, tax exposure is on track to become the new normal for sellers across the state.
In rapidly growing counties like Ada and Kootenai, these figures are likely even higher. And for an aging population hoping to tap into home equity to fund retirement, the tax bill could significantly erode expected profits.
A push for tax reform is underway
To solve the issue, housing advocates are backing the More Homes on the Market Act, a bipartisan proposal that would double the exemption limits and tie them to inflation.
“Equity shouldn’t be a trap,” says Shannon McGahn, chief advocacy officer at the National Association of REALTORS®. “It should be a stepping stone for the next chapter”.
Until policy catches up, Idaho homeowners should prepare carefully. Understanding how capital gains tax applies to your real estate is essential—especially for those who bought before the boom and are now thinking about cashing out.
New data found that Idaho’s domestic migration ticked up from 7.5% in 2023 to 8.3% in 2024.
The Consumer Confidence Index, a survey measuring Americans’ sentiments about the economy and their financial situation, dropped to 93 in June, down 5.4 points from the previous month, marking the second-lowest level since February 2021, the Conference Board, a nonprofit think tank, reported.
The sudden downturn came as a surprise to some economists, who had expected further growth following May’s modest uptick, which came after the index plunged to 86 in April—the lowest reading since May 2020 in the depths of the COVID-19 pandemic.
In a worrying sign, purchasing plans for homes declined, with a greater share of consumers saying they were on the fence about plans to spend money on big-ticket items overall compared with the previous month.
Micron announced it plans to build a second fabrication plant at its southeast Boise campus. The company is currently constructing its research and development plant alongside a water treatment plant. It is purported that the bare ground between the existing campus and the new construction will be filled with buildings and parking structures developed to handle the R&D production process and workforce. The company expects the second Boise fab to come online before the first New York fabrication plant commonly referred to as a ‘megafab’ based on its output. The company expects to create an estimated 90,000 indirect and direct jobs across the U.S.
The Kroger Company announced plans to build a 155,000-square-foot Fred Meyer store in Caldwell. The store will employ 250 workers with the company expecting to break ground in the spring of 2026 and open in 2026 or 2027.
Other Real Estate News
- CNBC | Nearly One-Third of Major U.S. Housing Markets Now See Falling Home Prices
- Inman | Why the Luxury Real Estate Market Can Feel Optimistic for 2025
- Bankrate | A New Type of Credit Score Bursts Onto the Mortgage Scene
- RisMedia | Housing Affordability Melts as Market Heats Up for Summer
Please note: Some news outlets may protect their content with paid subscriptions. While we try to refrain from sharing articles that may not be accessible to everyone, we may share them if important to the industry.
Additional information about trends within the Boise Region, by existing and new construction, are now available here: Ada County, Elmore County, Gem County, Four Rivers Region (coming soon), and Condos, Townhouses, and Mobile/Manufactured Homes Market Reports. Each includes an explanation of the metrics and notes on data sources and methodology.
Ada County
Canyon County
Elmore County
Gem County
Condos…
Download the latest (print quality) market snapshot graphics for Ada County, Ada County Existing/Resale, Ada County New Construction, Boise County, Elmore County, Gem County, Malheur County, Payette County, and Washington County.
Since Canyon County is not part of BRR’s jurisdiction, we don’t publicly report on Canyon County market trends. Members can access Canyon County snapshots and reports in the Market Report email, or login to our Market Statistics page. Our Owyhee County snapshot can also be accessed on our Market Statistics page.
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The data reported is based primarily on the public statistics provided by the Intermountain MLS (IMLS), a subsidiary of Boise Regional REALTORS® (BRR). These statistics are based upon information secured by the agent from the owner or their representative. The accuracy of this information, while deemed reliable, has not been verified and is not guaranteed. These statistics are not intended to represent the total number of properties sold in the counties or cities during the specified time period. The IMLS, Boise Regional REALTORS®, and Idaho Policy Institute provide these statistics for purposes of general market analysis but make no representations as to past or future performance. If you have questions about this report, please contact BRR’s Director of Growth & Strategic Communications Taylor Gray at 208-947-7238. For notes on data sources, methodology, and explanation of metrics, visit boirealtors.com/notes-on-data-sources-and-methodology.
If you are a consumer, please contact a REALTOR® to get the most current and accurate information specific to your situation.
Boise Regional REALTORS® (BRR), a 501(c)(6) trade association, represents real estate professionals throughout the Boise region. Established in 1920, BRR is the largest local REALTOR® association in the state of Idaho, helping members achieve real estate success through ethics, professionalism, and connections. BRR has two wholly-owned subsidiaries, Intermountain MLS (IMLS) and the REALTORS® Community Foundation.
“REALTOR®” is a federally registered collective membership mark which identifies a real estate professional who is member of the National Association of REALTORS® (NAR) and subscribes to its strict Code of Ethics.
