Economic development in North Idaho
Raphael Barta
As the Federal Reserve has pursued its high interest rate policies over the past 18 months, there have been many economists predicting a recession. We have not seen any evidence of a slow-down in the five counties of North Idaho however, as in-migration, job growth, and regional GDP numbers have stayed strong. The regional economy has continued transitioning from a traditionally resource-based economy to one that is more diversified and resilient. Several factors have contributed to this economic transformation, including population growth, investment in infrastructure, diversification of industries, and strategic economic initiatives.
One of the primary drivers of economic development in North Idaho has been significant population growth, particularly in Kootenai County. The city of Coeur d'Alene and the neighboring communities of Post Falls and Rathdrum, have seen a substantial increase in population, attracting new residents with a high quality of life, relatively low cost of living, and all kinds of natural amenities. This influx of people has stimulated demand for housing, services and infrastructure, which in turn has spurred economic activity and job creation.
Improvements in transportation, including the expansion of highways and enhancement of public transit systems, have facilitated better connectivity within the region and with neighboring states. The expansion of the Coeur d'Alene Airport and the development of the Port of Lewiston have also been significant, improving the region’s logistics and transportation capabilities, which are vital for both local businesses and attracting new industries.
Historically, North Idaho's economy was reliant on natural resource extraction, particularly logging and mining. While these industries remain important, there has been a deliberate effort to diversify the economic base. Key sectors that have emerged include tourism, manufacturing, technology, health care and education.
The natural beauty of North Idaho, with its lakes, forests and mountains, has made tourism a major part of the regional economic development. Destinations like Lake Coeur d'Alene, Lake Pend Oreille, Schweitzer Mountain Resort and Silverwood Theme Park draw visitors year-round, providing a steady stream of revenue while supporting a range of businesses, from hotels and restaurants to outdoor adventure companies. The manufacturing sector has also seen growth, with companies specializing in aerospace, electronics and custom fabrication. The expansion of health care facilities and educational institutions has been another vital aspect of economic development: this is the sector that has created the most employment opportunities over the past two years. Institutions like Kootenai Health, North Idaho College and the University of Idaho's Coeur d'Alene campus have played a critical role in workforce development.
Several strategic initiatives have been implemented to accelerate economic development in North Idaho. These include public-private partnerships, incentives for business investment, and workforce development programs at both the state and federal level. These programs provide various incentives, including tax breaks, grants, and assistance with site selection and permitting processes. These initiatives have been successful in luring new businesses to the region and encouraging existing companies to expand. In a competitive environment for more sophisticated employment opportunities nationwide, collaborations between local governments, businesses and community organizations have been instrumental in driving economic successes. These partnerships have facilitated investment in critical infrastructure projects, supported business expansion and enhanced community amenities. In the next few articles, I will profile some of these case studies as North Idaho continues to be one of the best places people could live while still having bright economic prospects.
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Raphael Barta is an associate broker with an active practice in residential, vacant land and commercial/investment properties. Email: raphaelb@sandpoint.com
