This October Spokane County multifamily market update examines growing refinancing challenges, improving local rental market conditions, and rising operating expenses affecting property owners and investors.
SPOKANE COUNTY MULTIFAMILY MARKET UPDATE – AROUND TOWN
1.
According to an October 2026 report from CRED iQ, approximately 23% of multifamily loans across the United States, totaling $136 billion and maturing between October 2026 and December 2028, will require owners to bring additional cash to refinance at higher interest rates. The estimated funding gap is $6.8 billion, with a typical shortfall of 15% of the loan balance. Properties financed in 2021 and 2022 are especially vulnerable, with 46% requiring additional cash. These refinancing challenges could create attractive acquisition opportunities for multifamily investors over the next two years. For property owners with upcoming loan maturities, please reach out to discuss your options and determine whether selling or refinancing makes the most sense for you. October 2026 report from CRED iQ
2.
Spokane’s rental market continues to improve, with annual rent growth around 1%, supported by slowing apartment construction and homeownership affordability challenges. Higher mortgage rates are keeping more potential homebuyers renting, while fewer new apartments are entering the market. Spokane County delivered 1,699 units in 2023 and 2,053 in 2024, compared to just 784 units in 2025, a significant slowdown in new construction. Vacancy peaked at 9.2% in Q3 2024 and has improved to 7.23% in Q4 2026. Nationally, apartment deliveries totaled 683,000 units in 2024 and 641,000 in 2025, with projections of 480,000 in 2026 and 430,000 in 2027 (see chart below). Yardi Matrix forecasts national rent growth of 2.1% in 2027 and 2.3% in 2028. With construction slowing and demand remaining strong, occupancy and rent growth will likely continue improving in the coming years.
3.
According to Yardi Matrix’s October 2026 Multifamily Update, operating expenses continue to rise faster than rental income across the United States. Over the past year, expenses increased 2.3% per unit, compared to 1.0% income growth, resulting in little to no growth in net operating income (NOI). Since 2019, expenses have increased 37%, while income has grown 29%. Here in Spokane, we have seen rising taxes, insurance, utilities, repairs, and maintenance costs, putting pressure on profitability. These trends highlight the importance of controlling expenses and maximizing rental income to protect property values and investment returns.
SEPTEMBER SALES
| Riverfront Park Tower Apartments | 259 W Spokane Falls Blvd, Spokane | 27 | 1905 |
FEATURED LISTINGS
SHARP APARTMENTS
$1,795,000 | 16 UNITS
THE HOWARD BUILDING
UNDER CONTRACT!
MADISON & SHARP DUPLEXES & LAND
COMING SOON!
LINCOLN APARMENTS
$799,950 | 9 UNITS
EASTSIDE ESTATES
JUST SOLD!
ASH APARTMENTS
UNDER CONTRACT!
For additional insight into multifamily financing and investment opportunities, read our Spokane County Multifamily Market Update – September 2026.
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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