For individuals and families considering a move to Idaho, the state’s economic growth story is one of steady progress, rising incomes, and expanding opportunity. Over the past five decades, Idaho has transformed from a lower-income state into one that now ranks solidly in the middle nationally, backed by impressive gains in median household income and key socioeconomic indicators.
A 48% Surge in Median Household Income
Since 1970, Idaho’s median household income has grown by 48 percent, outpacing the national growth rate of 32 percent during the same period. In inflation-adjusted 2024 dollars, Idaho’s median household income increased from $50,624 in 1970 to $74,942 in 2023.
This growth has significantly improved the state’s national standing. In 1970, Idaho ranked 41st in median household income among all 50 states. By 2023, it had climbed to 24th—an impressive 17-place increase.
For families relocating to Idaho, this upward trend reflects a stronger and more resilient economy than in decades past.
The Socioeconomic Drivers Behind Idaho’s Growth
Several key factors have contributed to Idaho’s income growth over the past 53 years.
Higher Educational Attainment
The percentage of Idaho residents with a bachelor’s degree has increased by 22 percent since 1970. Nationally, educational attainment is the most important factor associated with income growth. Higher levels of education can:
Lead to higher-paying jobs for residents
Attract employers seeking a skilled workforce
Encourage out-of-state students to remain in Idaho after graduation
Idaho’s investment in education and workforce development has helped create opportunities across industries, including healthcare, technology, advanced manufacturing, and agriculture.
Growth in the Foreign-Born Population
Idaho’s foreign-born population has increased by 4 percent since 1970. National research shows that growth in immigrant populations is positively associated with income growth. Immigration can both support expanding industries and reflect broader economic vitality.
Shifts in Manufacturing
Manufacturing employment in Idaho declined by 5 percent over the study period. Across the country, the effects of deindustrialization have varied by region. While some areas struggled with the loss of heavy manufacturing jobs, others transitioned into more diversified, higher-wage sectors.
Idaho has successfully evolved its economy, blending traditional strengths—such as agriculture and food production—with growth in healthcare, technology, and professional services.
Demographic Changes
The population of residents aged 19 and younger declined by 14 percent.
The population of residents aged 64 and older increased by 8 percent.
These demographic shifts reflect broader national aging trends while also creating opportunities in healthcare, retirement services, and community development—industries that continue to grow throughout Idaho.
How Idaho Compares Nationally
Western states have generally experienced stronger income growth since 1970, while many Midwestern states have seen slower gains. Utah recorded the greatest percentage growth in median income, while West Virginia was the only state to experience a decline.
Idaho’s cumulative indexed growth of 148 percent aligns with the overall strength of the Western region and places it among the states that have achieved significant long-term economic gains.
Broader analysis reveals several noteworthy findings:
Educational attainment is the single most important factor associated with income growth.
An increasing foreign-born population is positively associated with rising incomes.
State income and sales tax levels show no measurable association with changes in median household income.
States with colder temperatures and higher property taxes experienced greater median income growth, challenging conventional assumptions.
These findings suggest that long-term investments in people—particularly education and workforce development—are more effective drivers of income growth than short-term tax adjustments.
Why This Matters for Families Moving to Idaho
Income alone does not determine prosperity, but it provides a meaningful snapshot of economic strength. Idaho’s rise from 41st to 24th in median household income signals expanding opportunity, stronger wage growth, and a more competitive economic environment.
For families considering relocation, this translates to:
A growing job market supported by a skilled workforce
Increasing earning potential
A state economy that has demonstrated long-term resilience
Income growth can result from both rising wages and migration patterns, and Idaho has benefited from both trends. As more individuals and families choose to make Idaho their home, the state’s economic momentum continues to build.
Looking Ahead
Over the past 53 years, Idaho has demonstrated that sustained investment in education and workforce development can drive lasting economic progress. As policymakers continue focusing on industries that support higher wages and long-term stability, Idaho is well-positioned to ensure that families—not just businesses—can thrive.
For those considering a move, Idaho’s economic trajectory tells a compelling story: steady growth, rising incomes, and expanding opportunity across the state.