The Spokane multifamily market is currently at a standstill due to a significant pricing gap between buyer and seller expectations. As of July 18, 2025, there were 81 multifamily properties (5+ units) on the market in Spokane County, but only 7 were under contract. Transaction volume has slowed significantly – only 5 properties sold in Q2 2025, compared to a 3-year average of 14 sales per quarter. Key factors impacting pricing include:
- New rent control measures preventing rent increases and eliminating pro forma rents from underwriting
- Insurance rates doubling, or tripling in most cases
- Interest rates staying higher than many expected
- Elevated vacancy rates keeping rents relatively flat
While every property must be evaluated individually, overall pricing has declined, with CRE Daily reporting that nationwide multifamily property prices fell 12.1% year-over-year from Q2 2024 to Q2 2025 – the sharpest decline since the 2008 financial crisis.
What this means for you:
Sellers: Prices from 2020-2022, when interest rates were around 3%, are typically no longer realistic in today’s market. If you’re serious about selling right now, it’s not the time to expect a premium. With little relief ahead and a wave of debt maturities likely to push prices lower over the next two years, selling sooner may help you avoid further declines. While real estate appreciates long-term, if you’re planning to transact within the next couple of years, selling now might make sense. Properties priced correctly are still selling, but overpriced listings are sitting on the market for longer. Offering seller financing could be another strategy to help attract more buyers while supporting your tax situation.
Buyers: This market is creating excellent buying opportunities. With 81 properties sitting on the market and sellers becoming increasingly motivated, now is the time to write more offers. Real estate appreciates over the long term, so take advantage of current conditions while it’s still a buyer’s market.
This newsletter isn’t intended to cause concern – it’s simply a reflection of the current market reality. I track 1,333 multifamily properties in Spokane County, totaling 54,610 units, and would be happy to share insights on what I’m seeing. Feel free to book a meeting below or email me to discuss further!
Want to learn how I 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