The latter scenario has been particularly prevalent in America’s Intermountain West, which is home to the three states with the highest growth percentages between 2020 and 2021: Idaho, Utah and Montana. Oxford Economics recently named Boise, Idaho, the most unaffordable city for US homeowners, thanks to an influx of new remote workers from high-cost coastal cities such as Seattle and San Francisco. The median home price in this city of 235,000 is now $534,950 (£395,000) – 10 times higher than the median income.
A similar study from Florida Atlantic University, US, showed that three cities in neighbouring Utah – Ogden, Provo and Salt Lake City – were also among America’s top 10 most overvalued housing markets. Danya Rumore, a researcher at the University of Utah and founder of the Gateway and Natural Amenity Region (GNAR) Initiative, lives in the latter. “We used to call it Small Lake City,” she says, “But it’s really starting to feel a lot more like a big city, with the dynamics of the community changing notably.”
Big-city problems like gentrification, homelessness and air pollution are all on the rise, adds Rumore, while the overheated housing market (exacerbated by short-term rentals) has made it difficult for businesses in the service industry to maintain staff, since employees can’t afford rent. Rumore notes that Salt Lake City, which has a population of about 200,000, is emblematic of other urban centres in the Intermountain West, which are known for having ample natural amenities, good recreation opportunities, access to open space and a high quality of life.
That’s a major transition that happened overnight that really takes years and years for markets and communities to adjust to – Danya Rumore
“With the shift that’s been going on over the last year, we are seeing wealth move into these communities,” she says, noting that many new residents still earn their income in a high-earning area but now live in a lower-earning area. “That’s a major transition that happened overnight that really takes years and years for markets and communities to adjust to.”