Idaho’s Pre-Foreclosure Crisis Eases, but Struggles Persist Beneath the Surface

Dramatic Declines Offer Momentary Relief, but Housing Insecurity Remains Entrenched

In Idaho this May, a subtle quiet began to settle over a crisis that, in much of the country, still crackles beneath the surface. Statewide, the number of properties entering pre-foreclosure—a stage when delinquent homeowners are warned of pending legal action and have one last chance to catch up on payments—stood at just 61. That marks a stunning 51.2% decline from just one month earlier, and an even more striking 44.5% drop compared to the same time last year.

At first glance, these numbers seem like a sign that Idahoans are catching their breath in a housing market that’s been relentless for years. But behind the data lies a more complicated story—one where low-income residents, renters turned homebuyers, and working-class families are tiptoeing along an economic cliff edge, more hopeful perhaps, but still precarious.

From Pandemic Peaks to Post-Pandemic Pressure

The story of housing in Idaho—as in many parts of America—has always tracked closely with the country’s broader economic arcs. Throughout the late 2000s, Idaho wasn’t immune to the financial contagion that set off the Great Recession. Pre-foreclosure filings ballooned from just 18 in 2005 to a staggering 12,721 in 2010, putting thousands of families at risk of losing their homes.

As the economy recovered, so did many Idaho households. Pre-foreclosure numbers began declining steadily—by 2019, the state recorded just 690 pre-foreclosure filings. Then came 2020. The COVID-19 pandemic upended lives overnight, and although moratoriums and federal aid put a lid on evictions and foreclosures in the short term, the underlying financial pressure hasn’t gone away.

By 2023, as protections lifted and inflation surged faster than wage growth, Idaho saw pre-foreclosure numbers jump again, reaching 1,631 filings. That trend continued into 2024, with 1,387 filings across the year. And in the first five months of 2025, there have already been 531 cases, though the steep downturn in April and May may suggest a course correction—or at least a pause.

“We Thought We Were Safe”

For families like the Walkers in Twin Falls, the optimism of homeownership has faded as debt and costs mount. Amanda Walker and her husband bought their three-bedroom house in 2021, using a low-down-payment loan program designed to encourage first-time buyers. At the time, it felt like an enormous win. But rising utility bills, child care costs, and adjustments to property taxes in 2023 pushed their already-tight budget past its breaking point.

“We thought we were safe,” Amanda says. “We did everything right. But every month, it felt like the math didn’t add up. Eventually, we started falling behind.”

The Walkers entered pre-foreclosure in March. They’ve since worked with a credit counselor to negotiate a more manageable payment plan, but the stress has left deep scars.

“We don’t sleep through the night anymore,” she says. “No one tells you how quickly it can unravel.”

Inflation, Stagnant Wages, and the Affordable Housing Desert

Idaho’s population has grown rapidly, fueled in large part by an influx of residents from more expensive states like California and Oregon. That migration created a white-hot housing market that priced out long-time residents and drove up both home prices and rents in cities that once offered affordability as one of their main civic attributes.

Even as demand has cooled in recent months, price levels remain high by historical standards. Median home prices in Ada County, home to Boise, have climbed over 75% in the last six years. For homeowners on fixed incomes, retirees, and low-wage workers, these increases have outpaced wages, which in Idaho have grown unevenly across sectors.

Housing experts point out that this affordability crisis, paired with rising interest rates and tightening lending standards, has created a precarious balance: people are buying homes at high prices with thin margins, leaving no room for unexpected financial shocks.

Inflation, especially in essentials like food, child care, and gas, continues to bear down. And while unemployment has remained relatively low, many of Idaho’s new jobs have been in sectors that pay barely enough to cover basic living costs.