TOP ISSUES DRIVING THE SPOKANE HOUSING CRISIS - Part 4

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

The ultimate underline in the housing crisis is that our workforce simply can’t afford housing here. And there are several factors at play when it comes to who can, and who can’t, afford housing in Spokane.

A primary cause for the recent spike in prices is an influx of new residents who are willing and able to pay much higher prices for a home.

A recent survey revealed that in 2021, home buyers that moved into Spokane had a housing budget that was 23% higher than that of locals. These new residents are cashing out in more expensive markets such as Seattle and the Bay Area, and then using those payouts to lock down homes in and around Spokane–at far higher prices than local residents can afford to pay.

According to some reports, the individuals and families that began migrating from high-cost cities to Spokane in 2014 come with higher salaries. Steve Silbar is a local real estate agent whose clients were “nurses and teachers” when he started selling homes about five years ago. Today, his clients are engineers, corporate managers and others with higher incomes that locals can’t compete with.

Here are a few statistics from a recent study conducted in partnership with the Spokane Association of Realtors (SAR) that help paint this picture: 

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.