The Impact of Spokane’s Expanding Job Market on Rental Housing | Spokane Rental Insights
Spokane’s economy is changing fast. As more companies arrive and jobs continue to grow, rental housing is feeling the pressure. Here’s how economic expansion is altering Spokane’s rental market and what landlords and tenants need to know.
Job Growth Is Driving Rental Demand
The Spokane Workforce Council projects 15,000 new jobs over the next five years, underscoring mounting demand for housing just to keep up with incoming workers and their families. With affordable options remaining limited, this trend amplifies the pressure on the rental market.
Economic diversification continues with growth in healthcare, biotechnology, professional services, and tech. Spokane now supports a strong university driven health science sector and an emerging startup culture in the growing University District. This expanding job base attracts both short-term renters and long-term residents, fueling consistent rental demand.
Low Vacancy Meets High Demand
Spokane’s rental vacancy rate is currently hovering near 1.8%, significantly lower than historical norms, a sign of tight market conditions. This scarcity ensures that well-maintained rental properties rent quickly, especially in high-demand neighborhoods like North Spokane, Spokane Valley, and near the University District.
Job Market Trends Push Rent Growth
Steady job growth and housing demand correlate with rising rents. Spokane’s median home price is projected to grow around 3.6% in 2025, reflecting upward pressure on both ownership and rental markets. Additionally, industry observers note slow but steady rent increases as vacancies remain tight.
Mixed-Use Development and Long-Term Change
With Spokane’s tech and innovation sectors expanding, demand is rising for modern, flexible rental options. Developers are responding with more mixed-use projects, blending residential units with office and retail spaces, especially in the revitalizing University District and Kendall Yards.
These new developments help introduce supply while offering tenants more amenities and lifestyle options. Landlords should consider the long-term value of investing near these innovation hubs.
What Landlords Should Do Now
Landlords in Spokane should consider these proactive strategies:
- Investing in High-Demand Areas
Focus on neighborhoods with strong job growth like Spokane Valley, Airway Heights, and Post Falls, Idaho. - Upgrade Properties Smartly
Appeal to quality tenants with clean, well-maintained homes, modern amenities, and flexible lease options. - Stay Informed on Market Shifts
As job sectors expand, monitor changes in rental demand to anticipate rent growth or vacancy risk.
What Tenants Should Expect
- Rents May Rise: As job growth presses demand, expect rents to climb, especially in centrally located neighborhoods.
- Be Ready: Come prepared with rental documentation and flexibility to move quickly in low-vacancy areas.
- Check Emerging Offerings: Explore mixed-use apartments in areas like Kendall Yards, which offer lifestyle-driven rentals near workplace hubs.
Final Thoughts
Spokane’s rental market is evolving in lockstep with job and economic growth. As the job base expands, landlords benefit from low vacancy and steady demand, while tenants must navigate rising rents and shifting availability. By staying informed and proactive, whether you’re investing or renting, you can turn Spokane’s dynamic rental landscape to your advantage.