Spokane Investment Property for Sale - 2023 Rental Home Appreciation
The Spokane real estate market is growing, creating a lot of demand for housing. The main reason for this trend is the influx of new residents from high-tax states like California and lagging in new home construction. In fact, there’s an average of just 19 days of inventory listed for sale, and most homes sell in 35 days. This creates much competition and keeps real estate agents very busy.
Real estate investors interested in adding a Spokane rental property to their portfolio should act quickly before the market’s competition drives the price range up to Seattle and Bellevue prices.
Spokane's Attractive Housing Market
Spokane is a city in eastern Washington that’s home to the most significant urban waterfall in the U.S. It’s considered the hub of the Inland Northwest and has a lot to offer residents.
Real estate investors can find nearly every property type in Spokane homes for sale. They include everything from condos and multi-family homes to single-family homes. Whatever you’re looking to invest in, there’s a Spokane property for you.
The Spokane area is home to many great neighborhoods and suburbs for real estate investors to consider. They include Coeur d’Alene, Liberty Lake, Medical Lake, Manito, and Spokane Valley.
- Coeur d’Alene: Coeur d’Alene, Idaho is located 33 miles east of Spokane along I-90. It’s known as the “playground of the Pacific Northwest” and is rapidly growing. The median listing price in Coeur d’Alene is $336/sqft, and the median sales price is $615,000. The median rent is $2,095/month.
- Liberty Lake: Liberty Lake is located 16 miles east of Spokane along I-90, halfway to Coeur d’Alene. It’s known for its natural beauty and boating. The median listing price in Liberty Lake is $278/sqft, and the median sales price is $615,000. The median rent is $2,100/month.
- Medical Lake: Medical Lake is located 14 miles southwest of Spokane along I-90 and WA-902. It’s a small city that’s home to Fairchild Air Force Base. The median listing price in Medical Lake is $247/sqft, and the median sales price is $419,950. The median rent is $2,300/month.
- Manito: Manito is south of Downtown Spokane and home to Manito Park. It’s a quiet neighborhood with tree-lined streets, historic Victorian homes, and craftsman bungalows. The median listing price in Manito is $236/sqft, and the median sales price is $599,000. The median rent is $2,500/month.
- Spokane Valley: Spokane Valley is located 10 miles east of Spokane along I-90. It’s the city’s largest suburb and is known as a family-friendly community with great shopping and restaurants. The median listing price on a Spokane Valley home is $222/sqft, and the median sales price is $459,490. The median rent is $2,000/month.
Rental Home Appreciation in Spokane
Spokane has a growing rental market where renters occupy 37.2% of households. Additionally, the city only has a 1.8% vacancy rate.
According to Realtor, the median listing price in Spokane is $213 per square foot with a median sale price of $449,000. Zillow’s Home Value Index reports a 26.1% change since last year. The median rent in Spokane is $1,950 per month. That’s not a bad return on investment.
What’s more, experts project real estate investors can expect a cap rate of 6-7% in the Spokane area.
Spokane offers real estate investors a stable rental market with above-average appreciation. They combine to create an excellent opportunity for real estate investors and property management companies to increase their cash flow through rental income.
Economic Growth in Spokane
Spokane is the second largest city in Washington State, between Seattle and Tacoma, and it’s only growing. In fact, Spokane grew nearly 10% between the 2010 and 2020 censuses. The city is also the seat of Spokane County and home to Gonzaga University.
Conveniently located between Seattle and Boise, Spokane is a hub for the Inland Northwest. The Spokane area’s primary industries are farming, forestry, mining, education, health services, and trade. The largest employers are the State of Washington, Spokane Public Schools, Providence Medical Center, and Children’s Hospital. Spokane is also the fifth largest aerospace cluster in the U.S. These industries and employers provide jobs that fuel the city’s growth and economy. The unemployment rate is just 4%.
The Spokane real estate market offers growth for homebuyers and real estate investors, a stable rental market, above-average home price appreciation, and a strong economy. They combine to create a tremendous investment opportunity.
Want to invest in a Spokane rental property? Sign up with Arrived to discover how we make real estate investment easy and affordable.