Exploring Spokane’s Multifamily Development Growth
Spokane, Washington, is experiencing a rise in apartment construction, drawing interest from developers across the Pacific Northwest. With its strategic location, affordable property prices compared to major West Coast cities, and a growing local economy, Spokane has several features that developers and investors interested in apartments and multifamily housing might want to know about..
Rapid Growth in Multifamily and Mixed-Use Developments
Driven by rising housing demand and proactive city policies, Spokane is experiencing a significant increase in multifamily construction and redevelopment. In 2023, the city issued a record number of permits for multifamily units, underscoring its strong development potential.
Initiatives like "Building Opportunity for Housing" encourage higher-density projects near public transit corridors, opening the door for innovative multifamily and mixed-use developments. Combined with increasing private investment, Spokane has become a dynamic market for those exploring opportunities in residential real estate.
A Stabilizing Market for Apartment Investments
As new inventory enters the market, Spokane’s rental sector is reaching a healthier balance between supply and demand. The vacancy rate currently sits at 5.8%, up from a historic low of just 0.5% in 2021, signaling improved conditions for both tenants and property owners.
This stabilization may contribute to more predictable market conditions, which could help developers and property owners better evaluate potential opportunities in the region.
Strategic Advantages for Investing and Developing in Spokane
Several key factors may make Spokane a location of interest for those involved in multifamily development projects:
Economic Diversification: Spokane’s economy is supported by a balanced mix of healthcare, education, manufacturing, and technology sectors, offering resilience against market fluctuations and sustaining long-term housing demand.
Affordability and Value: Real estate prices remain considerably lower than in cities like Seattle or Portland, allowing lower entry costs and potential for favorable returns for both new developments and repositioned assets.
Infrastructure Investment: Major projects such as the North Spokane Corridor are improving transportation networks and utilities, increasing regional connectivity, and making Spokane more accessible to businesses and residents.
Pro-Development Policies and Incentives: City programs like ‘Building Opportunity for Housing’ try to make it easier to get approval for apartment projects and sometimes offer money to help with housing development
Types of Multifamily Development Activity in Spokane
Spokane includes a mix of development activity, including new apartment construction as well as renovation and repositioning of existing properties. The types of available projects can vary, depending on market conditions, location, and development goals.
Final Thoughts
Spokane’s multifamily development activity reflects broader trends in housing demand, urban planning, and regional growth. While factors like affordability, infrastructure investment, and evolving city policies have contributed to increased construction, market conditions continue to shift over time. Anyone considering development in this area should stay informed about local regulations, permitting trends, and neighborhood-level changes.
* This article is for informational purposes only and is not investment advice. It’s important to talk to a professional before making any investment decisions.
References:
City of Spokane (2024) Record number of permits in Spokane during past 3 years. City of Spokane News Stories, 5 February.
Spokane Journal of Business (2024) Year-end 2024 Spokane market apartment vacancy. Spokane Journal of Business.
KHQ (2024) Spokane has record number of building permits approved over 3 years. KHQ News.
City of Spokane (2024) Building Opportunity for Housing. City of Spokane Projects.
