The data is in and we can now look back at the trends in Spokane’s housing market for quarter one of 2025. The housing market showed signs of softening, particularly the higher end marked by class “A” properties seeing an occupancy rate decline to 78.6% even with a general overall rent growth of 1.5%. When we take an overall look we see that market occupancy sits at 87.9% (which is down 4.5% from last year), while the average effective rent has risen slightly to $1,385. Rent growth is modest, with more reliance on concession especially at the top and bottom tiers. This last quarter concessions grew to be fairly common - with nearly 30% of class “A” and class “D” properties offering discounts in an effort to attract new renters. A key factor that is worth keeping your eye on is the sizable construction pipeline, as estimates show there are around 10,000 new units in the works. These new units make up about 35% of the market share, putting even more pressure on occupancy rates. That being said, we see that income and employment growth in the region continue to support housing demand. In fact, income and employment are growing faster than the population! This offers balance and reduces the risk of oversupply.
All things considered, Spokane’s housing market is navigating a transition period marked by softening occupancy, yet a steady and modest rent growth trend. While strong employment provides a solid foundation, it will be interesting to see how the pipeline of new construction affects the market’s stability in the coming months. How the market balances while juggling all these factors will be critical to watch as we finish this year.
Check out the statistics for the new construction underway in the Spokane area:
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Total units in pipeline: 10,213 (34.9% of market)
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Breakdown by submarket:
- Valley: 28.9%
- North Metro: 22.6%
- South Hill: 17.3%
- South North Metro: 16.8%
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Central Business District: 13.2%
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Property types:
- Garden: 8,226 units
- Mid-rise: 1,661 units
- High-rise: 326 units
Blog post written by: Aysha Martin
