A Rising Tide of Pre-Foreclosures in Idaho: The Economic Pressures Squeezing Homeowners

The notice came in the mail on a crisp September afternoon—another bill, another round of anxiety. For Sarah Mitchell, a single mother of two living in Boise, it was the letter she had been dreading. A pre-foreclosure notice. The mortgage payment, already pushed to the bottom of a priority list filled with rising grocery costs and an unexpected car repair, remained unpaid for months.

“I did everything I could,” she said, her voice breaking. She had picked up extra shifts at a local diner, cut every unnecessary expense, and yet, the math never seemed to work out. Now, she is at risk of losing the home she has lived in for over a decade.

Sarah’s story is just one among many as Idaho experiences another surge in pre-foreclosures. The numbers tell a story of economic strain, housing instability, and a market that remains unforgiving to those just barely holding on. In September 2024, 93 Idaho homeowners found themselves in the same position as Sarah, facing the early stages of foreclosure—a 190.63% increase from August, when just 32 properties entered pre-foreclosure. This sharp monthly rise hints at worsening financial distress among Idaho households.

Yet, the longer view provides a more complicated picture. Compared to September 2023, when 142 properties were in pre-foreclosure, this year’s 93 cases represent a 34.51% decrease. The ups and downs of the data reflect the still-tenuous balance between economic recovery and the ongoing affordability crisis in one of the nation’s fastest-growing states.

A Rollercoaster of Foreclosure Trends

Idaho’s path through the housing market over the past two decades is a microcosm of national economic turbulence. In 2010, amid the fallout of the Great Recession, pre-foreclosures in the state hit 10,136, marking the height of the housing crisis that devastated many working- and middle-class families. The recovery was slow but persistent, with pre-foreclosure numbers gradually stabilizing through 2019.

Then came the pandemic. At the peak of COVID-era financial relief, pre-foreclosures plunged to their lowest levels in nearly two decades: just 216 cases in 2021. Mortgage forbearance programs, direct stimulus payments, and eviction moratoriums kept many families in their homes despite widespread job losses.

But in the years since, the numbers have begun creeping upward again. 516 pre-foreclosures were recorded in 2022, and the count nearly tripled in 2023 to 1,469. As of September 2024, Idaho has seen 707 pre-foreclosure cases, putting the state on track to surpass 2022 levels but remain below last year’s totals.

What the statistics fail to fully capture is the emotional weight of these numbers. They represent real families, real struggles, and the relentless financial pressures that force people into making impossible choices: Pay the mortgage or buy groceries? Cover the utility bills or refill a prescription?

The Economic Squeeze

The forces pushing Idaho homeowners toward distress are familiar economic culprits—rising inflation, stagnant wages, and housing costs that far outpace income growth.

While the federal government has touted overall economic improvement, those gains have been unevenly distributed. Inflation remains persistent, particularly in essential categories such as food, utilities, and insurance, meaning paychecks do not stretch the way they did a few years ago. Meanwhile, interest rate hikes have made borrowing more expensive, impacting everything from mortgages to credit cards, further straining household budgets.

Idaho’s housing market, while not as brutal as it was at the peak of the pandemic-fueled real estate boom, still poses challenges for struggling homeowners. Property values soared post-2020, driving up mortgage payments and property taxes. For those who bought their homes more recently, many are now grappling with higher-interest loans that have locked them into unaffordable monthly payments.

Even homeowners who have lived in their properties for years, like Sarah, are feeling the pinch. “When I first bought this house, my mortgage payment was manageable,” she said. “But now, everything is so expensive. My paycheck doesn’t go as far as it used to.”

Who’s Being Hit Hardest?

While foreclosure data often focuses on aggregate numbers, it is low-income and middle-class families who bear the brunt of financial hardship. Homeownership remains one of the primary ways Americans build wealth, but for those teetering on the edge of foreclosure, it becomes a double-edged sword—an asset that quickly turns into a liability the moment payments are missed.

A single missed mortgage payment can trigger a spiral. Late fees accrue. Credit scores drop, making it harder to secure future financial relief. And once a property enters pre-foreclosure, the clock starts ticking.

Though this month’s pre-foreclosure numbers do not break down which counties or cities are suffering the most, historical trends suggest that Idaho’s largest population centers—Boise, Nampa, and Coeur d’Alene—are likely among the hardest hit. Housing affordability is most strained in these rapidly growing metros, where median home prices have skyrocketed over the past decade.

A Glimpse of Relief or the Start of a Deeper Crisis?

The decline in year-over-year pre-foreclosures suggests that Idaho has not yet tipped into a full-blown housing crisis. However, the sharp month-over-month increase raises concerns about whether a more significant wave of financial distress is on the horizon.

Economic resilience remains fragile for many households. While job markets have improved on paper, wage growth has not kept pace with cost-of-living increases. Homeowners who relied on savings, pandemic-era stimulus, or loan forbearance programs are finding those safety nets depleted.

For many, the next few months will be critical. If inflation cools and interest rates stabilize, pre-foreclosure numbers could level off. But if household expenses continue to rise, more families like Sarah’s could face the devastating reality of losing their homes.

As for Sarah, she’s holding onto hope. She has reached out to a local housing assistance program, looking for any path forward that could help her keep her home. “I just need a little more time,” she says. “I’ve worked too hard to lose everything now.”

Idaho’s foreclosure numbers tell a story, one not just of economic trends but of people fighting—some successfully, others not—to stay in the homes where they have built their lives. In an economy that remains unpredictable, that fight is far from over.