TOP ISSUES DRIVING THE SPOKANE HOUSING CRISIS - Part 2

8 out of 10 Spokane residents can’t afford to buy a home in current market conditions.

Read that sentence again. We’re in a housing crisis like never before.

Home prices in Spokane rose 30% over the past year alone, but the driving forces behind housing affordability started years ago.

It’s past time to take action, and that work begins by getting a clear understanding of what’s driving the crisis. Here are the top five reasons we’re in such bad shape.

1. Population Growth
2. Not Enough Housing
     It’s simple economics: lack of supply drives up costs, and we’re way behind on supply.

Between 2010 and 2021, Spokane County underbuilt new homes to the tune of hundreds of homes per year. Even now, we’re building around 1400 fewer units per year than needed by our growing population. Projections show that Spokane will need to add nearly 2900 housing units per year to meet housing demand, but we’re only building around 1500.
The supply issue is driving up costs in the rental market, too. As home prices increase, more would-be buyers are stuck renting, creating more demand for rentals.

The rental and single-family housing markets are very connected, as evidenced by these rental statistics:
1.4% – Spokane County’s vacancy rate for all apartment units, according to the Washington Center for Real Estate Research’s Apartment Market Report.
10% – The increase in median rent for all rentals in Spokane last year, according to monthly reports on rental data.
34.5% – The overall increase in median rent for all rentals in Spokane since the beginning of the pandemic (March 2020). 

3. Shortage of Skilled Workers
4. Resistance to Change Zoning
5. Out-of-Market Buyers

Read next week’s article for more & What we can do to help ensure Spokane is an affordable place to live... & grow!

For more information visit SHBA or Building For the Future. 

www.SHBA.com
(509) 532-4990
5813 E 4th Ave, Suite 201
Spokane Valley, WA

The Spokane Home Builders Association is a member-driven organization that works to elevate professionalism in the residential construction industry, provide innovative resources and information to our members and engage in informative, effective advocacy on construction issues to create affordable housing options for the community. We promote, protect and educate the housing industry and our community.