This Spokane County multifamily market update for March 2026 highlights current vacancy trends, policy changes, and recent activity across the county.
AROUND TOWN
1.
Below are the current vacancy rates for the seven submarkets in Spokane County (as of March 15, 2026). It is important for owners to be aware of these trends when determining rental rates, leasing incentives, or potential opportunities for development or investment.
- Downtown Spokane: 6.99%
- Spokane Valley: 6.87%
- North Spokane: 8.29%
- South Spokane: 6.58%
- West Spokane County (Airway Heights/Medical Lake): 6.23%
- South Spokane County (Cheney/Fairfield): 10.19%
- North Spokane County (Colbert/Deer Park): 3.99%
2.
Washington State is in the process of passing a new “millionaires tax” that would apply a 9.9% tax rate to income above $1 million, beginning January 1, 2028. Only the portion of income exceeding $1 million would be taxed at that rate. For example, if someone earns $3 million in a year, the $2 million above the threshold would be taxed, resulting in about $198,000 in additional state taxes that previously would not have applied. This represents a significant change to Washington’s tax structure and adds additional complexity for high income individuals and investors operating in the state.
3.
While the State of Washington is tightening the screws on taxes, buying real estate remains one of the most effective ways to shelter income and reduce tax liability, in addition to the many other benefits of ownership. For example, if an individual earning $250,000 annually purchases a $5,000,000 apartment complex and about 20% is allocated to land, the remaining $4,000,000 building value can be depreciated. Straight line depreciation would generate about $145,000 per year, reducing taxable income to roughly $105,000 and saving about $53,650 annually in federal taxes assuming a 37% tax bracket. With a cost segregation study, first year depreciation could exceed $700,000, potentially eliminating that year’s tax liability and creating losses that may carry forward to offset future income.
FEBRUARY SALES
| Property | Address | Units | Year |
|---|---|---|---|
| Lincoln Apartments | 901 S Lincoln St, Spokane | 11 | 1890 |
| Madison Apartments | 1619 N Madison St, Spokane | 5 | 1914 |
| Mallon Apartments | 1318 W Mallon Ave, Spokane | 7 | 1976 |
| Hogan Apartments | 2923 N Hogan St, Spokane | 6 | 1978 |
| Dan Apartments | 12608 E Nora Ave, Spokane Valley | 32 | 2025 |
AVAILABLE LISTINGS
FELTS TOWNHOMES
$3,250,000 | 12 UNITS
LAKE CDA APARTMENTS
UNDER CONTRACT!
THE HOWARD BUILDING
$1,850,000 | 42 UNITS
EASTSIDE ESTATES
$1,550,000 | 5 UNITS
MONROE ST TRIPLEXES & DEVELOPMENT SITE
$1,100,000 | 6 UNITS
UNION APARTMENTS
UNDER CONTRACT!
ASH APARTMENTS
$550,000 | 7 UNITS
QUEEN APARTMENTS
$395,000 | 8 UNITS
WHITEHOUSE DUPLEX
JUST SOLD!
For a quarterly comparison, see our Q4 Spokane Multifamily Snapshot to track how transaction volume, pricing, and cap rates have shifted since last quarter.
For additional local insights, visit the Spokane Journal of Business Real Estate section for current coverage on Spokane’s development and investment activity.
Want to learn how we can help you with your business? Reach out today!
Jordan Lester, CCIM, MBA, specializes in advising clients with the acquisition and disposition of multifamily investment properties. With a primary focus in Spokane County and an expert understanding of the latest market trends, Jordan is committed to maximizing his client’s financial goals to achieve their real estate objectives. Jordan began his real estate career as a broker’s assistant for three years with SVN Cornerstone, which gave him valuable knowledge and experience to jumpstart his career as a broker. To get in touch with Jordan, email jordan.lester@svn.com or call 509.496.6922