The 2024 Cost of Living Update in Spokane, Washington

In recent years, the cost of living has undergone significant changes across various regions, and Spokane, Washington, is no exception. As a resident and a realtor in the area, I'm excited to provide you with a comprehensive 2024 cost of living update for Spokane. In this blog post, we will delve into key aspects of living in Spokane, including housing, daily expenses, and unique factors that contribute to the overall cost of life in the region. Whether you're considering a move or simply curious about the financial landscape, this update aims to provide valuable insights.

Home Values and Trends

To begin, let's explore the housing market in Spokane. Home values have experienced notable fluctuations over the past couple of years. As of November 2024, the median home price stands at $420,000, reflecting a 2% increase from the previous month and nearly 3% from the previous year. Contrary to expectations, prices have remained resilient, showing a 3% year-over-year growth despite current interest rates.

Cost of Owning a Home

However, the cost of owning a home has become more challenging, primarily due to rising interest rates. With an average home price of $420,000 and interest rates hovering around 7%, the monthly mortgage payment for a property with a 10% down payment can range from $2,800 to $3,600. This emphasizes the importance of considering all associated costs before committing to homeownership.

Renting as an Alternative

For those not ready to commit to homeownership, renting remains a viable option. The average rent for a three-bedroom, two-bath house in Spokane is around $2,100 per month. It's noteworthy that, at present, renting appears to be more cost-effective than buying, especially considering the current state of interest rates.

Additional Homeownership Expenses

Insurance Costs

Beyond mortgage payments, homeowners must account for insurance expenses. Insurance costs vary based on factors such as home age, size, and location. For example, a brand-new home may have insurance costs as low as $650 per year, while older homes or those with unique features could see premiums exceeding $1,000 annually.

Property Taxes

Property taxes are a significant consideration for homeowners. In Spokane, property taxes are relatively standard, averaging around 1% of the assessed value. However, it's essential to monitor assessed values and tax rates to ensure accurate billing and avoid overpayment.

Washington's Tax Landscape

Washington's unique tax structure, lacking state income tax but incorporating higher sales tax rates, impacts residents differently. While income tax savings are notable, a 9% sales tax in Spokane may offset some of those gains. Additionally, the state imposes excise and capital gains taxes, particularly relevant when selling assets.

Utility Costs

Understanding utility expenses is crucial for financial planning. In Spokane, water, sewer, garbage, and electricity bills are standard considerations. Average monthly costs for electricity and gas combined range from $136 to $200, depending on the season and home features.

Maintenance and HOA Fees

For additional home-related expenses, homeowners may encounter Homeowners Association (HOA) fees, landscaping costs, and housekeeping expenses. Fortunately, Spokane's HOA fees are relatively reasonable, with many ranging from $60 to $250 per month.

Health Insurance

Healthcare costs can vary based on employment situations. On average, health insurance for adults in Washington is $420 per month. However, alternative healthcare options, like Direct Primary Care, provide more affordable alternatives for cash pay-oriented individuals.

Transportation

Car-related expenses, such as insurance, registration, and gas, contribute to the overall cost of living. Spokane's gas prices, while fluctuating, have generally been more affordable than some other regions. Additionally, car registration fees and maintenance costs should be factored into transportation budgets.

Daily Expenses

Daily expenses, including groceries, impact household budgets significantly. Spokane's grocery prices are comparable to national averages, with items like bread, milk, eggs, and ground beef having reasonable costs.

Entertainment and Dining Out

Enjoying restaurants, movies, or recreational activities is part of the overall living experience. Spokane offers a range of dining options, from high-end restaurants with fine dining experiences to more affordable local spots. Entertainment costs, including movie tickets and golf fees, are relatively reasonable, contributing positively to the region's quality of life.

In conclusion, understanding the comprehensive cost of living in Spokane involves considering various factors, from housing and utilities to healthcare and daily expenses. While the region offers a more affordable living environment compared to some metropolitan areas, it's essential to assess individual circumstances and preferences.