NEW YORK — Spokane's housing market continues to boom. A recent rise caught the attention of The New York Times.
An article released on Sunday titled "The Next Affordable City Is Already Too Expensive," follows the story of community members in Spokane, including Spokane's Mayor Nadine Woodward.
The author wrote that even the mayor isn't immune. The article also cites reports from both Zillow and the Spokane Association of Realtors.
Spokane County grew by more than 68,000 people, coming in at number 90 nationwide. Its population increased by 14.5% between 2010 and 2020, ranking at 238.
For years, the talk in Spokane has been the hot housing market. According to real estate website Redfin, housing prices in Spokane are up 22.8% since last year. That’s good news for sellers but it makes the search tougher for people.
In 2021, Fortune Magazine published a list of the 10 most overpriced housing markets in the United States and Spokane made it into the list.
Spokane ranked No. 6 with the most overpriced houses, selling for 45% more compared to past years. Boise's housing market is the most overvalued in the country – ranking No. 1 with homes selling 80% above past values.
The report said housing prices in Boise and Spokane have raised quickly in recent years and during the COVID-19 pandemic due to the work-from-home trend.
People are moving from crowded and high-cost cities to the Inland Northwest, and It’s drawing people who grew up here to stay while attracting others who are new to the region with money to spend. It all adds up to a crowded field for buyers.
"When they see a $600,000 house, they sold their house for maybe $2.5 million in California. Now they're coming here,” Real Estate agent Perry Domini said of new buyers entering the market. “Well, $600,000 for an awesome house, that’s not a big deal for them."
According to a recent report commissioned by the Spokane Association of Realtors and as reported in the New York Times, over half the homes in the Spokane area sold for less than $200,000, and about 70% of its employed population could afford to buy a home.
A home is considered affordable if its occupants are paying no more than 30% of their monthly income for rent and utilities. A 2019 Real Estate Report, published by the Spokane County - Kootenai County Real Estate Research Committee, reveals that the average rent amount in Spokane County is $1, 250.
A Spokane County household must make over $50,000 annually to afford that rent. More than 46% of the households in Spokane County make less than $50,000 annually.
The New York Times says that a recent survey by Redfin, the real estate brokerage, showed that home buyers moving to Spokane in 2021 had a budget 23% higher than what locals had.