Modest rise in home prices expected in Idaho and US through 2027

Housing supply remains tight with about two months of inventory in Ada County and 2.4 months in Canyon County

Mar. 18, 2026 at 12:11am

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U.S. home prices will rise modestly this year and in 2027 as the market remains constrained by high mortgage rates and a shortage of affordable homes that will persist for years, according to housing analysts. In Idaho's Treasure Valley region, prices increased in February year-over-year 1.5% in Ada County and 6% in Canyon County, with new home builds making up 56% and 60% of the current supply respectively.

Why it matters

The modest rise in home prices reflects ongoing challenges in the housing market, including high mortgage rates, limited supply, and affordability concerns that are expected to continue weighing on the market in the coming years. This has implications for homebuyers, homeowners, and the broader economy.

The details

According to the report, U.S. home prices are forecast to increase just 1.8% this year and 2.5% in 2027, well below the Federal Reserve's 2% inflation goal. In Idaho's Treasure Valley, the median sales price in Ada County reached $538,000 in February, $8,000 higher than a year earlier, while Canyon County saw a median home sales price of $441,990. However, housing supply remains tight, with only about two months of inventory in Ada County and 2.4 months in Canyon County.

  • In February, home prices increased 1.5% year-over-year in Ada County and 6% in Canyon County.
  • The median sales price in Ada County reached $538,000 in February, which is $8,000 higher than it was in February of 2025.
  • The median home sales price in Canyon County reached $441,990 in February.

The players

Yvonne Niedergesaess

A real estate agent with The Agency Boise.

Crystal Sunbury

A real estate senior analyst at RSM, a U.S.-based consulting firm.

Lawrence Yun

The chief economist at the National Association of Realtors.

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What they’re saying

“We are currently undersupplied when it comes to listings, but we expect that to improve with the typical spring selling season and based on the listing activity we're already seeing in our office.”

— Yvonne Niedergesaess, real estate agent

“Consumers are now facing fewer available jobs as well as 'an overall cautious sentiment in the economy, and now rising inflation again.'”

— Crystal Sunbury, real estate senior analyst

“Thirty-year mortgage rates are predicted to average around 6.0% through 2028. That rate could rise as high as 7.0% this year if the Iran conflict persists.”

— Lawrence Yun, chief economist

What’s next

The Federal Reserve is increasingly likely to keep interest rates where they are for longer due to discomfort with inflation levels that were already running too high before the U.S. and Israeli war with Iran.

The takeaway

The modest rise in home prices in Idaho and across the U.S. reflects ongoing challenges in the housing market, including high mortgage rates, limited supply, and affordability concerns that are expected to continue weighing on the market in the coming years. This highlights the need for policymakers and industry stakeholders to address these issues to improve housing accessibility and affordability for consumers.