Cracking the Code: Unveiling the Secrets to Affordable Housing in Spokane

Housing affordability is a pressing issue for many residents in Spokane, and there is no quick fix or easy solution to this problem. According to recent research conducted by Redfin, only 21% of listed homes in the U.S. are affordable for the average household, meaning that the monthly mortgage payment would consume 30% or less of the average person's monthly income. In fact, the average American would have to spend a staggering 42.9% of their income to afford a median-priced home.

Renters in Spokane are also facing challenges, with average rent prices increasing by 18% over the past five years, surpassing the rate of inflation. This places a significant financial burden on individuals who are already on the lower end of the economic scale. While there are affordable housing programs available, most of them are overwhelmed with demand, resulting in waitlists that stretch over a decade.

Numerous factors contribute to the high cost of housing, whether it's renting or buying a home. The state of the economy, mortgage rates, a shortage of available housing, and stagnant salaries that have not kept up with rising housing costs, even after accounting for inflation, all play a role. Effectively addressing housing affordability across the board would require substantial systemic changes. However, in the meantime, here are some tips specific to the Spokane context that can help you navigate the challenges of housing unaffordability.

For Renters:

1. Seek assistance from a local real estate agent: Connect with a real estate agent who is familiar with the Spokane housing market. They can provide valuable insights and assist you in finding an affordable rental, especially in highly competitive rental markets. Inquire about their policy on rental properties and any associated fees.

2. Contact property management companies directly: Reach out to property management companies that specialize in lower-priced rentals in the Spokane area. Even if you don't find a perfect match on their website, they may have upcoming properties available. Applying early can give you an advantage.

3. Utilize your network: Inform your friends, family, coworkers, and other acquaintances that you are searching for an affordable rental. They may know someone who can help you find a suitable place. Personal referrals can carry weight with landlords and increase your chances of securing a rental.

For Buyers:

1. Explore mortgage options: If rental prices in Spokane are prohibitively high, you might discover that owning a home with a mortgage results in lower monthly payments. Investigate various loan programs tailored for first-time homebuyers, such as those offering down payments as low as 3.5%. Additionally, research the USDA loan program, which provides a 0% down payment option for eligible individuals in rural areas. Explore local first-time homebuyer programs that offer grants or forgivable loans to support down payments.

2. Shop around for mortgages: Obtain multiple quotes from different lenders when seeking a mortgage. According to Freddie Mac, obtaining additional quotes beyond the initial one can save you up to $1,500, while acquiring four or more quotes may yield savings exceeding $5,000. Consider unconventional loan types like FHA or USDA loans, which offer lower rates and/or reduced down payment requirements.

3. Consider fixer-uppers: Instead of exclusively focusing on fully-renovated homes, explore properties that require updates. Ensure the house is structurally sound but may have outdated aesthetics. Purchasing such a property at a lower price allows you to customize and update it to your liking later.

4. Expand your search area: If the cost of living in Spokane is excessively high and you have the flexibility to relocate, consider moving to a different city with a lower housing cost. For those wishing to remain in Spokane, consider widening your search to neighboring neighborhoods or areas slightly outside popular locations. Often, this can result in significantly lower rental prices while maintaining a similar level of convenience.

Regardless of whether you're renting or buying, it can be beneficial to work with an experienced local real estate agent. Look for an agent with a strong track record in Spokane and expertise within your budget range. Their knowledge of the local market and network can greatly assist you in finding suitable housing.

Finding affordable housing in Spokane can be challenging, but we're here to help. Contact our team of experts today for personalized assistance. We are committed to helping you find the perfect home within your budget.