The median home price in Kootenai County reached $485,000 in February 2026, a 7.2% increase from the same month last year, according to data released Wednesday by the Coeur d’Alene Association of Realtors. The number of homes available for sale simultaneously dropped to 1.6 months of supply — the tightest inventory in the North Idaho market since the pandemic-era frenzy of 2021 and well below the 4-6 months that economists consider balanced between buyers and sellers.
The data confirms what Kootenai County residents already feel in their daily lives: North Idaho’s housing market remains one of the most competitive in the intermountain West, with demand consistently outpacing the supply of homes for sale. The combination of continued in-migration from higher-cost states, limited buildable land in the lakefront and valley floor areas, and a construction industry that cannot keep pace with demand has created persistent upward pressure on prices across Coeur d’Alene, Post Falls, Hayden, and Rathdrum.
Prices by City Across Kootenai County
Coeur d’Alene proper saw the highest median price at $525,000, a 6.5% increase year-over-year, driven by strong demand for lakefront-adjacent properties and the walkable downtown core. Post Falls, which has attracted many first-time buyers priced out of Coeur d’Alene, posted a median of $435,000, up 8.1%. Hayden recorded a median of $480,000, up 7.8%, while Rathdrum — the most affordable of the four major cities — saw prices climb 9.4% to $395,000.
“Rathdrum and the Highway 41 corridor are where we’re seeing the strongest demand from families relocating to Kootenai County,” said Sarah Mitchell, president of the Coeur d’Alene Association of Realtors. “They’re getting more house for the money compared to CDA proper, and the school options with Lakeland Joint and Rathdrum districts are attractive to families with children.”
Who’s Buying and Where They’re Coming From
Approximately 35% of Kootenai County home purchases in the first quarter of 2026 involved buyers relocating from out of state, according to the CDAR data. Washington, California, and Oregon remain the top three origin states, with many buyers citing Idaho’s lower taxes, conservative governance, outdoor lifestyle, and family-friendly communities as primary motivations for relocating.
The influx of out-of-state buyers with equity from higher-cost markets has been a double-edged sword for Kootenai County. While it has driven economic growth and increased the tax base, it has also pushed home prices beyond the reach of many long-time North Idaho residents, particularly young families and essential workers. The median household income in Kootenai County is approximately $68,000 — meaning the median home at $485,000 requires an income roughly twice the local median to qualify for a mortgage at current interest rates.
Impact on Kootenai County Residents
The affordability gap has become a significant quality-of-life issue in Kootenai County. Teachers, first responders, healthcare workers, and service industry employees increasingly struggle to afford housing in the communities where they work. The Coeur d’Alene School District and Kootenai Health have both identified housing costs as a barrier to recruiting and retaining staff.
The Kootenai County Board of Commissioners has been exploring partnerships with developers to incentivize workforce housing, though progress has been slow. Commissioner Leslie Duncan said the county is studying programs used in other high-growth Idaho communities, including Ada County’s approach to density bonuses for affordable housing developments.
What Comes Next
Real estate analysts expect Kootenai County prices to continue rising through 2026, though at a slower pace than the double-digit increases seen in 2020-2022. Prospective buyers can monitor listings through the Coeur d’Alene MLS at cdarealtors.com. The Kootenai County Assessor’s office provides property value information and assessment appeal instructions at kcgov.us/assessor. For comparison, Ada County News recently reported similar trends in the Treasure Valley market.