Compared to 2022, commercial construction slowed considerably in 2023. The number of commercial permits pulled in the Boise MSA were down 30 percent and saw the lowest number of permits since 2011. Several factors impacted commercial development such as high construction costs, shortage of skilled labor coupled with rising labor costs, and the financial sector making it difficult for builders to secure financing. This slowdown will likely last into 2024 as developers continue to face these challenges and with fewer projects to be delivered in the pipeline. Permit value reached a record high of $629 million last year reflecting the higher costs associated with development.