Spokane's Growth - What's Driving It?

Question

DO YOU KNOW SPOKANE?? WHAT'S DRIVING THE ECONOMIC GROWTH?

Having grown up in Spokane in the 90's, I've watched this once sleepy town mature into a vibrant city. Now as a budding RE investor, it's important to understand the fundamentals of what is causing this growth and energy. Will rents rise? Home prices? What can we expect in terms of new companies coming to town? How will that impact the economy? What about all of the investors coming from the coasts - is that a good thing?

Anyways, if you have any insight into the growth in Spokane, post it here, and let's connect!

Thanks!

Jeff Hornberger · Answer

Hi Charlie, I live in Spokane and have been a realtor for 10 years and specialize in the multi-family world. I think it’s a combination of things. We have amazon putting in a distribution center that will be employing 3000 people. The air force base is growing their fleet of refuelers. There’s a large home manufacturing company that opened its doors in the valley as well. I think between the semi large companies that exist hear and the norarity sookane has gotten as of late from various widely recognized magazines as top places to live that’s still affordable is attractive to residence.

In the multi-family world investors find Amazon a major attraction to start investing in airway heights, cliff cannon and Browns addition.  Those areas are close to downtown life, hospitals and some of the major employers in town.

Also Spokane is still a cash flow play city. The purchase price to rent ratio is good and a lot of times investors can’t get that in their own market so they begin to look here.

I manage quite a few rentals in town and we have seen rents go up if day 20% on average the last couple years.

With that being said the real estate market has begun to soften just like in most markets in the country. Mainly caused by interest rate hikes. Some markets in Seattle have flattened quite a bit as well. Great thing about Spokane is the highs are never that high but the lows are never that low. There’s opportunity to come in the next down cycle but I think most investors are looking forward to that.

Good luck!

Dan G. · Answer

Also our planning department has done and is doing a great job recruiting business to move to Spoakne.  All the projects Jeff mentioned were the result of the planning department incentivizing  development in Spokane by offering tax breaks, access to the airport, giving land to companies that move in, etc

The planning department also gives tax breaks to investors in certain areas if they redevelop them. Like the Kendal Yards area.

George J Anderson Jr · Answer

I live here in the Spokane area now for the past year and a multifamily maintenance supervisor. About to buy my 1st multifamily unit.

This place is growing in leaps and bounds.

Always willing to meet up with pros. Add me if you like!

Would love to chat

Matt Gilroy · Answer

Hi Charlie,

In addition to what @Jeffhornberger and @DanG said, we've seen a lot of activity coming to the downtown core.  The Downtown Spokane Partnership has been bringing private investment to focused areas.  Washington State University, Gonzaga and the University of Washington have all expanded here.  WSU now has a medical school for students to remain in Spokane, Riverfront Park is in the middle of a $40M renovation and update, crime has decreased and like a lot of growing areas there are not enough contractors for all of the construction projects and work.

Overall our economic forecast looks great over the coming years.  It's exciting to see Spokane take advantage of our great regional and geographical qualities and enhance the city and surrounding areas, even if it comes with a bit more traffic.  Greater Spokane Inc. (chamber of commerce) has some great events coming up that expand on the details of what's driving economic growth here.

Cheers,

Matt

Aaron Farr · Answer

@Tony F. shoot me a message and I can connect you with some good property managers.

Jeff Hornberger · Answer

@Karl Krauskopf, congrats on getting mutual acceptance! I will be working on a flip this weekend but would be happy to peel away and meet up. Shoot me a text if you’d like and we’ll see where your at. Lookin forward to hearing about the deal 👍

Jay Hinrichs · Answer

couer d' Alene is kind of already there .. and only a 30 to 40 minute drive.. I consider that part of Spokane area.

But Spokane does have 4 seasons.. and Bend does as well.. but its a little colder in Spokane throughout the winter..

I read articles in the late 80s and 90s touting central and Eastern WA as a place to watch.. I went to the worlds fair when it was held there  :)

Caleb Webster · Answer

I’ve got to agree with @Jay Hinrichs on this one, I’ve been telling people for years that Spokane is the next Bend. The proximity of natural beauty in Spokane rivals that of other much more expensive cities. The livability of much of Spokane (South Hill, Browns and now parts of West Central) is something I haven’t experienced in any other city in the northwest. The coffee, beer and food scene are incredible for a city of its size and it boasts many large, well run events every year (bloomsday, hoopfest etc.).

Spokane's Growth - What's Driving It?

Most Popular Reply