Spokane Isn’t Cheap Anymore — But Is It Still a Good Bet?

For years, Spokane was the best-kept secret in the Pacific Northwest. While Seattle, Portland, and much of California saw home prices skyrocket, Spokane offered something increasingly rare — a chance to own a home without sacrificing your entire future. But in 2025, that affordability narrative is starting to fray.

Beneath the surface of rising interest rates and slower appreciation lies a deeper story — one about income mismatches, buyer psychology, and the shifting definition of what “affordable” really means. And if you're living here, relocating, or just watching from the sidelines, it's worth looking beyond the headlines.

Home Prices vs. Incomes: The Growing Gap

Let’s start with the numbers. As of fall 2025, Spokane’s median home price sits at about $420,000. That same home cost roughly $250,000 just five years ago. Meanwhile, median household income in Spokane hasn’t kept pace. Depending on whether you pull from city or county figures, it’s hovering somewhere between $65,000 and $73,000.

That means the average buyer today is expected to spend 5.5 to 6 times their income to afford a median-priced home — a significant departure from the traditional 3-to-4 times income rule that’s long defined housing affordability. This ratio doesn’t just strain budgets — it’s locking out a large segment of buyers altogether. In fact, current estimates suggest only about one-third of Spokane households can realistically afford to purchase at today’s prices without overextending.

Renting Isn’t the Lifeline It Used to Be

If you thought renting would be the more affordable option, you’re not alone — and you’re not necessarily wrong. But the gap is shrinking.

The average rent for a two-bedroom apartment in Spokane is currently between $1,500 and $1,750. A three-bedroom apartment climbs to $1,750 to $2,000. And a typical three-bedroom home rents for somewhere in the $2,100 to $2,600 range depending on location.

In many cases, it’s still cheaper to rent the exact same house than it is to buy it. Run the numbers, and you’ll find that even with moderate appreciation — say 3% annually — it could take over a decade to break even. At a 5% appreciation rate, you’d break even in about five years. In other words, homeownership still builds wealth, but only if you plan to stay put for a while.

The Interest Rate Wildcard

Interest rates are playing a huge role in Spokane’s affordability story. Recently, the Federal Reserve announced a 0.25% rate cut — the first of several anticipated before year’s end. That’s welcome news for the housing market, but it doesn’t always translate to lower mortgage rates.

As of today, mortgage rates are sitting around 6.15%. Some well-qualified buyers are dipping into the high 5s, marking a three-year low. Pair that with flat prices — Spokane has seen less than 1% appreciation in the past 12 months — and you actually have one of the best buying windows in recent memory. But it won’t last forever.

Mortgage applications jumped 30% on the news of rate cuts. And if rates drop further, expect competition to spike — and prices to follow. That’s why some buyers are moving now, locking in homes they can afford today, rather than banking on a dream rate tomorrow.

What a $300K Budget Gets You Today

Remember when a $300,000 budget in Spokane could land you a decent starter home in a solid neighborhood? That’s not the case anymore. Today, that price range mostly gets you into specific areas: neighborhoods like Logan, Hillyard, Bemis, Whitman, and portions of West Central. Inventory in those zones is extremely tight, and competition is high. Homes are often older, smaller, and more likely to need work.

Some buyers look to rural areas — hoping that land in Deer Park or a fixer-upper outside of town might offer better value. But many are surprised to find that building outside the city comes with higher utility costs, septic and well requirements, and fewer affordable construction options. There’s no secret suburb where homes are magically $100K cheaper. Affordability is tight everywhere.

Buyers Are Getting Smarter — And More Cautious

Affordability is more than a monthly mortgage. It’s gas, groceries, childcare, and vacations. Many buyers are pushing back against maxing out their pre-approvals.

One recent client was approved for $700,000 but chose a $350,000 home instead — not because she couldn’t afford more, but because she wanted breathing room. And she’s not alone. Lenders look at debt-to-income ratios. They don’t ask how much you spend at Costco or whether you’re planning a family trip next summer. But you should.

That’s why buyers today are defining affordability on their own terms — not just by what a lender says they can spend, but by what aligns with the lifestyle they want to live.

Zoning Reform Is Happening… Slowly

Spokane has taken steps toward easing the affordability crunch through zoning reform. More density is now allowed in traditionally single-family areas, and accessory dwelling units (ADUs), townhomes, and duplexes are easier to build.

But approvals take time. Infrastructure capacity is lagging. And developer interest is mixed. Even as policy shifts toward pro-housing solutions, Spokane isn’t building fast enough to meet demand. Estimates vary, but the Spokane REALTORS® Association believes the city needs closer to 25,000 new housing units — not the 8,000 projected by local government.

Either way, we’re not hitting either target. And the result is continued scarcity.

From the Outside, Spokane Still Looks Like a Bargain

Despite rising prices, Spokane still looks like a deal to many out-of-state buyers. And that’s why demand hasn’t cratered.

People relocating from California, Seattle, and other expensive metros are often amazed that they can buy a home with a yard, walk to a park, and live within 10 minutes of everyday amenities — all for less than half the price of their previous home. And that dollar-stretching effect is keeping Spokane attractive, even as locals feel the pressure.

So while Spokane may not be “cheap” anymore, it still offers strong value in comparison to the places people are moving from — and that perception continues to shape the market.

The Bottom Line: Rethink What Affordability Really Means

If you’re renting, protect your lease terms and don’t force a purchase if the numbers don’t pencil out. But also stay informed — the rent vs. buy calculus is constantly shifting.

If you’re buying, prioritize long-term value. That means being flexible on your “must haves” and not counting on interest rates dropping to make a home affordable. Buy for the payment you can handle today.

If you’re selling, understand that buyers are more cautious. Pricing too high or refusing to negotiate is a fast track to sitting on the market. Today’s buyers are educated — and if your home doesn’t show real value, they’ll wait for one that does.

And if you’re relocating, be realistic. Spokane isn’t a hidden gem anymore. It’s a competitive, growing market that still offers lifestyle value — just not at 2019 prices.

Affordability in Spokane is no longer a given — it’s a strategy. And the people who succeed in today’s market are the ones who understand that nuance.