Despite Boise's supply shortage and skyrocketing prices, homes in Ada County have always been built primarily by local builders. That could soon change.
Boise has seen a significant increase in out-of-state developers of commercial properties and multifamily housing. As one of the country's largest homebuilders enters the market, home construction could be the next local market to see a wave of national interest.
Until now, Toll Brothers, the country's fifth-largest home building company by revenue, has been the most notable national builder in the Boise area.
But an even bigger housing giant is moving in. Bringing in $22.5 billion in revenue in 2020, Miami-based Lennar is the 159th-largest company by revenue in the United States and the second-largest homebuilder, according to Fortune. Its stock rose 40% in the first four months of 2021.
Lennar just made its Treasure Valley debut with the announcement of its first planned community. The Prevail subdivision will be located in south Meridian at 5430 S. Scandia Ave. and include 131 one-story and two-story single-family homes. Prevail homes, going for around $500,000 each, are expected to hit the market in early 2022.
The Boise area will be seeing more Lennar communities now that the company has established a Boise division with Jeff Clemens as its president.
"With the lifestyle that's offered in the Treasure Valley and the fact that the schools are so good, and the climate having four seasons, and people getting to choose kind of where they want to live, we saw it as a great location," Clemens told the Idaho Statesman in a phone interview.
Clemens said he plans at least eight new communities, ranging from 60 to 100 homes each, with active homes for sale next year. Caldwell and Nampa will be the next Lennar locations.
"We see Boise as a place that will be in demand for the years to come, and we plan on being an integral part of the community," Clemens said.
The Boise area needs more homes to combat ever-increasing prices. A September report from Boise Regional Realtors said lack of home inventory is the primary driver of rising Boise home prices.
"A balanced market not favoring buyers or sellers is typically between 4-6 months of supply," the report said. "As of July 2021, (the months supply of inventory) for Ada County was at just 1.0 months for existing homes and 1.3 months for new construction, meaning, if no additional homes were listed starting Aug. 1, the supply of homes for sale would run out in less than two months."
Trey Langford, creator of real estate website Build Idaho, isn't surprised to see Boise getting interest from a large national builder.
"We all know that real estate is hot due to the influx of out-of-state buyers, so it is not surprising that there are several national builders like Lennar and Shea Homes who see Boise as a big opportunity," Langford told the Idaho Statesman by email. "Inventory of new homes has not been able to keep up with sales, which caused a steep increase in home prices. National builders have been looking at Boise for years. The change in the market over the last two years has finally made it make sense for them to start developing land and building homes here."
Prevail homes will range from 1,808 to 2,801 square feet with up to four-car garages on 7,000-square-foot sites. Amenities will include covered patios, high-tech kitchens, "spa-inspired" bathrooms and oversized walk-in closets.
All of the homes will be "smart homes" with Wi-Fi integration built into the home to enable things like keyless door entry, a Ring smart doorbell and security system, a smart garage door and integrated thermostats.
"We will be one of the first builders in the Treasure Valley that (has) a full home-automation experience," Clemens said.
