From Deseret News archives:
Idaho town is booming
"When the announcement was made, it was a shock to everybody. We hadn't dreamed it would happen," recalls Tanya Alban, a regional economist for the Idaho Department of Commerce and Labor. "Overnight, real estate prices went up. Places that had sat vacant for years were immediately bought up."
Apartment construction went "out of control" as a result, Alban said.
"We immediately had an influx of building with contractors building apartments," remembers Clair Boyle, director of Madison County Economic Development. Some builders lost money when the anticipated rush of students didn't fill all the new buildings.
The announcement also prompted new hiring at the school, boosting home construction, Boyle said. "And then you have those who are speculators who say, 'This is a booming town, and we need to get our business in there.' Commercial businesses follow residential growth, and now we're seeing a lot of commercial."
State population figures show Rexburg grew from 17,257 residents in 2000, to 24,733 in 2004 — a 43 percent increase in four years. The figure does not include students attending BYU-I, though the student population also grew from 8,949 to 11,555 during the same period.
Today, land in the area is "still pretty pricey for Rexburg," Alban said, adding that other sectors of the town's economy have grown "smartly. Real estate went crazy, but everything else was moving casually and growing nicely together." Overall, "we don't have one sector outpacing the other."
Boyle said the boom has boosted the price of single-family homes in town, which ranged from an average of about $90,000 to $120,000 in 1999. The same homes today would cost $170,000 to $200,000, he said.
Other building activity since 2000 has included several buildings on the BYU-I campus, both new construction and significant remodeling.
Some southeastern Idaho contractors expressed frustration earlier this year with the fact that much of the construction on campus has been done by Utah-based builders. As a private university, BYU-I doesn't have to seek competitive bids for its work but can choose contractors with whom it has long-established relationships.
