Boise area real estate and rental management blog
For decades, Tony Drost has tracked four plex metrics monthly for Ada County which includes Boise, Meridian, Star, and Kuna cities. With short supply, the longer-running average trends in Ada County fourplex data are more telling than a look at October's metrics, as we only had one fourplex sell in October.
Average Days on Market (DOM) for 2022 is 19 days, which is over double from 2021 but still considered to be very good.
The Trailing 6 Month Average Cap Rate is 4.64%. This is based on actual rents, not market or projected rents. Cap rates appear to be creeping up a bit, which is good news for buyers. Sellers are still seeing good prices, which means rents are supporting the higher cap rates.
Gross Rent Multipler (GRM or Price/monthly rents) was 182 in October. With prices not dipping, the lower GRM suggests that rents are improving. The trailing 6 month average is 195 and is more indicative to where the market is. GRPM had been over 200 from August 2021 through July of 2022.
With inventory being so low, we would think that any fourplex listing with a price based on the numbers above, and presenterd itself well, would probably sell. To date, multifamily data has not presented the same as single family home trends, where inventory has climbed. There is still cash and 1031 money in the marketplace. Cash buyers want discounts and financed buyers in search of cash flow are putting more money down. We are interested in helping sellers facilitate owner-carry purchases, if there is interest, and we have experience in this arena. Contact us if you'd lioke to discuss that creative option or a more trandional purchase or sale.
Your Boise Investment Properties Team
Tony Drost and Stacy McBain
Associate Brokers
Swope Investment Properties
