This Spokane County multifamily market update for June 2026 highlights vacancy rate trends, the North Idaho multifamily market, and current Spokane County cap rates.
SPOKANE COUNTY MULTIFAMILY MARKET UPDATE – AROUND TOWN
1.
After several years of elevated vacancy rates and limited rent growth, there are encouraging signs that Spokane County’s apartment market is beginning to stabilize. Vacancy rates increased from just 3.3% in Q1 2021 to a peak of 9.2% in Q3 2024, driven by a record wave of new apartment construction that delivered 1,699 units in 2023 and 2,053 units in 2024 (well above the historical average of approximately 1,200 units per year). Since construction activity slowed to just 784 new units in 2025, vacancy has improved to 7.47% in Q2 2026, and several apartment owners have told me they are once again beginning to increase rents in select submarkets as of June 2026. While areas such as North Spokane and Spokane Valley continue to experience higher vacancy rates, other parts of the county are seeing improved occupancy and renewed rent growth. With significantly fewer new apartment deliveries expected moving forward, this is a positive trend that owners should continue to monitor closely.
2.
As I have continued to expand my multifamily brokerage coverage into North Idaho, I am frequently asked how the Kootenai County market compares to Spokane County. While every investment is different, North Idaho generally offers lower operating expenses, including property taxes of approximately 0.5% of assessed value compared to about 1% in Spokane County, along with lower water, sewer, and garbage expenses of approximately $89 per unit per month versus $125 per unit per month in Spokane County. Kootenai County’s current population growth is 1.81% in 2026, compared to 0.57% in Spokane County, although Spokane remains the larger market with a population of 562,325 versus 195,330 in Kootenai County. Idaho’s more landlord friendly regulations include 30 day rent increase notices compared to 120 days in Spokane County and 180 days in the City of Spokane, as well as generally simpler eviction procedures. These factors have helped support higher apartment values in North Idaho. Both markets offer excellent investment opportunities, and each property should be evaluated on a case by case basis.
3.
Current Spokane County multifamily cap rates are averaging 6.19%. As a general guideline, newer apartment complexes are typically trading between 5.5%-6% cap rates, properties built in the 1970-1990s are generally trading between 6%-6.5%, and older properties are often selling between 6.5%-7%, or even higher in some cases. Every property is different based on its location, condition, and risk profile, but these ranges represent the current market. Most importantly, these cap rates are based on actual in place financial performance, not pro forma projections or assumed future rent increases and expense reductions.
APRIL SALES
| Cedar Ridge Apartments | 2611 N Market St, Spokane | 55 | 1978 |
LISTING OF THE MONTH
SPOKANE 29 UNIT PORTFOLIO
$2,640,000 | 29 UNITS
FEATURED LISTINGS
BOONE APARTMENTS & MINI STORAGE
JUST SOLD $1,270,000
SIXTH AVENUE APARTMENTS
$699,000 | 6 UNITS
THE HOWARD BUILDING
UNDER CONTRACT!
ASH APARTMENTS
$550,000 | 7 UNITS
MONROE ST TRIPLEXES & DEVELOPMENT SITE
$1,100,000 | 6 UNITS
SPOKANE 29 UNIT PORTFOLIO
$2,640,000 | 29 UNITS
For a monthly comparison, see our Spokane County Multifamily Market Update – May 2026.
For broader rental market context, national vacancy data can be reviewed here. 👉 Rental Vacancy Rate in the United States
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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