Hillyard’s $1 Billion Comeback: Spokane’s Most Overlooked Neighborhood Is Getting a Radical Makeover

If you’ve ever driven through Hillyard and thought, “I don’t know if this is for me,” you’re not alone. But a new draft subarea plan just dropped, and it sketches out a future that looks nothing like this neighborhood’s past—or even its present.

We’re talking thousands of new jobs, hundreds of new homes, walkable festival streets, and safer bike routes, all tied to the long-awaited North Spokane Corridor. And it’s not just a wish list—it's a ten-year blueprint backed by city planners, business owners, and residents alike.

A Vision Decades in the Making

City planners have been meeting with Hillyard neighbors and the Northeast Public Development Authority for over two years. The priorities were clear: jobs close to home, housing locals can still afford, safer streets, and a way to reconnect east and west Hillyard after decades of being split by railroad tracks—and now a freeway trench.

This subarea plan delivers on those goals in four major ways:

• Cleaning up and repurposing old industrial sites

• Turning Market Street into a community hub for food trucks and farmers markets

• Adding more duplexes, triplexes, and apartments so families aren’t priced out

• Building new sidewalks, bike lanes, and a pedestrian bridge to finally reconnect the neighborhood

Where Construction Starts First

The catalyst map in the plan shows development hotspots scattered throughout the neighborhood—but three stand out right away.

First, the Market and Haven intersection is slated to become a true festival street with angled parking, shade trees, wide sidewalks, and weekend vendor stalls. The city is fast-tracking construction drawings to line up with the opening of the new freeway ramps.

Next up is the Esmeralda Industrial Site—24 underused acres reimagined for light manufacturing and flex office space. That means around 300 new jobs coming to the area and demand for coffee shops and lunch spots to serve the workforce.

Then there’s a long-awaited trail connection: a new pedestrian and bike bridge that will float over the North Spokane Corridor, giving cyclists and kids a safe way to cross what used to be a rail line and is soon to be a busy highway.

Put all that together and you start to see a future where semi trucks are rolling into newly built warehouses while families are strolling through a weekend night market just two blocks away.

A Housing Plan With Locals in Mind

Growth only matters if it includes the people who already live there. The plan calls for 434 new homes by 2033, with a mix of:

• Duplexes and triplexes on existing lots

• Apartments above future storefronts on Market Street

• Live-work townhomes near the rail spur warehouses

And to prevent displacement, the plan outlines tools to support renters and first-time buyers—like down payment assistance, rent relief funds, and policies that prioritize locals for below-market units. While those programs still need City Council funding, the framework is ready to go.

Infrastructure That Changes Daily Life

It’s not flashy, but transportation upgrades may be the most meaningful part of this plan. As new North Spokane Corridor ramps open, freight traffic will shift away from neighborhood streets, allowing Market and Wellesley to become more pedestrian-friendly and lined with real bike lanes.

Missing sidewalks will finally be installed thanks to grant funding and capacity fees, and Haven Street will be redesigned as a freight boulevard with smart traffic signals. There’s even a proposal to extend the Centennial Trail from Esmeralda Golf Course north to Farwell, creating a safe bike route from Downtown Spokane to Mead.

These improvements won’t just ease congestion—they could also quietly boost home values in the area long before the first mixed-use building even breaks ground.

So What Does This Mean for You?

If you’re a buyer, there are still well-kept homes under $300K in Hillyard—a price point that’s hard to find in Spokane. If you like the idea of living above a future storefront or want to lock in a pre-sale unit early, keep your eyes on Market Street as things develop.

If you’re a seller or own a chunk of land in the neighborhood, this plan—and upcoming zoning changes—could increase interest from developers and investors.

And if you’re an investor, the real opportunity lies in underutilized industrial parcels near the rail spur. The Northeast PDA is expected to roll out requests for proposals (RFPs) by 2026, but the savvy will move sooner to set the bar for future comps.

Looking Ahead

As with any revitalization plan, concerns about gentrification are valid. But the city hopes that a phased rollout tied to transportation milestones will keep the transformation balanced. Some might question bringing more industry into the neighborhood, but remember: the entire goal of the North Spokane Corridor is to move semis off of Market Street, giving the neighborhood room to breathe and thrive.

Funding is already earmarked, and the state is closely watching this plan’s progress because of how it connects with broader infrastructure investments. City Council is expected to review and adopt the final version later this year.

Hillyard has always had the potential to be something more—and now there’s a roadmap to make that happen. With restaurants already drawing locals, and new community spaces on the horizon, this overlooked neighborhood might just become Spokane’s next breakout hub.