Idaho's Economic Storm Clouds: A Growing Concern for Young Families

Idaho, once celebrated for its affordability, is now facing a tough economic situation, especially for young people. The state has the highest debt-to-income ratio in the country, tied with Hawaii. This is largely due to the rising cost of housing and the arrival of new residents.

Young People Feel the Pinch

Young people in Idaho are feeling the pinch even more. The debt-to-income ratio doesn't even include student loans, which many young adults are struggling with. This makes their financial situation even worse than the numbers show.

Housing Affordability Crisis

Housing affordability is a big issue.
Idaho is one of the least affordable states for households earning between $50,000 and $100,000 a year.
Nationwide, the number of first-time homebuyers has dropped to a new low of 21%.
The average age of these buyers has risen to 40.

Job Market and Income Concerns

The job market isn't looking great either. Employers plan to hire only 1.6% more graduates in 2026 compared to 2025. While personal income has grown, Idaho still ranks in the bottom half of the nation for median household income.

Inflation and Child Care Costs

Inflation has eaten into wage gains at the lower end of the income scale.
For families with young kids, wages haven't kept up with the rising cost of child care.
In Idaho, child care costs range from 8.24% to over 10% of family income, which is way above the 7% benchmark for affordable child care.

A Worrying Picture

All these factors combined paint a worrying picture for young Idahoans. If a recession hits in the next 18 months, high personal debt and unaffordable housing could force many young families to leave the state.

Challenging Idaho's Reputation

Idaho used to be known as an affordable place to live. But these new trends challenge that reputation. The growing gap between housing costs and wages, along with employers struggling to keep wages in step with inflation, poses a real threat to Idaho's economic stability.

Urgent Need for Action

If these issues aren't addressed soon, they could cause serious problems for both residents and the leaders responsible for guiding the state forward.