Idaho leads in housing growth; data shows it’s not enough

Abigail Gerstein

(Idaho Capital Sun) For the second year in a row, Idaho had the highest housing unit growth rate in the nation — boasting a 2.1% increase in its housing stock in 2025, according to the Idaho Department of Labor. But the addition of more than 17,000 units still falls short of need as the state’s population surges.

Between 2020 and 2025, Idaho increased its housing stock by over 12% — far outpacing the national increase of 5.3%. Idaho’s success in these metrics, however, is complicated by a national housing shortage and an influx of people moving to the state.

Since 2020, more than 90% of Idaho’s cities have seen positive population growth, according to Idaho’s Department of Labor. Almost 10,000 new residents arrived across Caldwell, Meridian, and Nampa between 2024 and 2025. And nationally, only South Carolina has seen greater growth than Idaho’s 1.4% statewide increase in population.

A growing population, coupled with a strained housing supply and rising construction costs has caused nonprofit organizations across the state to sound the alarm on the shortage of affordable housing units in Idaho.

“Idahoans can’t afford to buy a house in the town they grew up in,” said Ali Rabe, the executive director of pro-housing advocacy nonprofit Gem State Housing Alliance.

“The housing shortage is driving up costs and making it nearly impossible for long-time residents and young families to find homes. This isn’t just an affordability problem, it’s a barrier to economic stability and quality of life,” she said.

A multilayered issue: affordable housing, zoning codes and rising construction costs

A report by the National Low Income Housing Coalition found that for every 100 rent-burdened households in Idaho, there are only 33 affordable and available housing units. According to the coalition, a minimum wage worker would need to work 126 hours a week to afford a one-bedroom apartment priced at average fair market rent in Idaho. The report estimated that Idaho had a near 35,000-unit shortage of affordable homes in the state.

The result is many local lower-income households leaving the state as higher-income households move in. According to a 2026 report by Jesse Tree, a nonprofit that works to prevent homelessness and eviction in Ada and Canyon counties, there is a $30,000 annual income disparity between those who are leaving and moving into the state.

Gem State Housing Alliance highlighted strict local zoning codes as one bottleneck to development in Idaho in a report released earlier this month. The nonprofit reported that zoning codes can make it difficult to build multiple units on the same land through intensive permitting processes and parking space requirements. Additionally, restrictions on the construction of accessory dwelling units, or ADUs, on individual properties can also limit the supply of homes.

The report follows one of the largest reforms to Idaho’s zoning code in history, after Gov. Brad Little approved legislation during the 2026 legislative session that is expected to support starter home neighborhoods and make ADUs easier to build.

The law will go into effect next month, and local municipalities have until February 2027 to update their codes to match the change.

Rising construction costs also play no small part in the housing crunch. Across the country, increases in construction costs continue to outpace inflation and further incentivize building new homes.

[subhead]How are local officials are responding to Idaho’s growth, housing crunch[/subhead]

Still, at the local level, officials from across Idaho say it is difficult to keep housing and local services at pace with the dramatic growth.

While Pocatello Mayor Mark Dahlquist supports the loosening of local zoning restrictions, he is concerned about the nature of state-level restrictions on local government.

“I think it is better for the cities individually to determine what their needs are and set their own codes and their own policies,” said Dahlquist. “The state’s kind of trying to control what’s best for municipalities. That concept is sometimes hard to swallow and hard to deal with.”

Nonetheless, Dahlquist, who formerly worked for the housing nonprofit NeighborWorks, is proud of the efforts Pocatello has already made in its zoning codes.

“I feel like Pocatello was already really ahead of the curve with what the state was doing, because in many of our neighborhoods we have already relaxed those minimum lot sizes, and we do allow those accessory dwelling units anywhere in the city,” said Dahlquist.

Meridian Mayor Robert Simison also emphasized steps that his city had already taken to make development more attractive, including allowing ADUs and pointing to growth in its multi-family offerings.

“Meridian is also focused on creating opportunities for integrated mix-use housing types in an effort to align planning and infrastructure,” said Simison. “Projects that bring varied housing solutions combined with commercial opportunities create opportunities for a live, work, and raise a family atmosphere within our city.”