Dear Owner/Clients –
The Treasure Valley rental market, already grappling with soaring prices and tenant affordability concerns, is now bracing for the impact of the conclusion of the federal Emergency Rental Assistance Program (ERAP). Created in response to the financial hardships caused by the COVID-19 pandemic in 2020, the program has provided vital support to tenants in need. However, as the funds from this program are expected to run out within a couple of weeks, the future of many Treasure Valley residents who rely on rental assistance remains uncertain.
The federal Emergency Rental Assistance Program (ERAP), designed to aid tenants experiencing financial difficulties due to the pandemic, has played a crucial role in offsetting escalating housing costs in the Boise area. As of April 2023, nearly 14,000 households in the Treasure Valley had received assistance through this program. Unfortunately, the clock is ticking, and the housing authorities responsible for distributing the funds anticipate exhausting their remaining aid for Boise and Ada County residents by the middle of the following month. This impending end to rental assistance comes at a time when rents in the Boise metro area have surged by over 37% since March 2020, exacerbating the affordability crisis.
The termination of the federal rental assistance program raises concerns among local housing advocates about the fate of residents already on the brink of losing their rental homes. As wages have failed to keep pace with the rising cost of living in Boise, the emergency aid has served as a critical safety net for those struggling to make rent payments. The program provided up to 15 months of assistance, disbursed in three-month increments, directly to landlords or utility providers. This financial support helped tenants catch up on back rent and establish a more stable footing. However, with the program’s conclusion, the potential consequences of housing insecurity loom large. Eviction court hearings in Ada County have already doubled compared to the same period last year, indicating the vulnerability of renters without ongoing assistance.
Despite the easing of pandemic restrictions, the reverberations of the crisis persist, with high inflation and unaffordable housing prices affecting the Boise rental market. While housing prices have slightly cooled off, homeownership remains out of reach for many Idahoans. This lack of affordability has a direct impact on the rental market, as prospective homeowners opt to remain renters, driving up rental prices. Moving Feedback’s study ranks Idaho as the fourth least affordable state for renters, with rents increasing an average of 41% over the past three years. In the Boise metro area, rents have surged by over 37% since 2020, with the median price of a one-bedroom apartment reaching $1,375 per month, and a two-bedroom rental averaging $1,595 per month, according to Zillow.
As the federal Emergency Rental Assistance Program nears its end, the Boise rental market faces increased uncertainty and challenges. With dwindling rental assistance funds and ongoing affordability concerns, many residents are at risk of housing instability. The termination of this crucial program could lead to a surge in eviction cases and exacerbate the already pressing issue of unaffordable rents. Moving forward, it is crucial for policymakers and local authorities to prioritize sustainable solutions and explore avenues to provide long-term rental support for the vulnerable population in Boise and address the underlying issues of housing affordability.
- Matt Johnson
- Johnson Property Management, LLC