Why Are There So Few Homes for Sale in Spokane Right Now?

Introduction to Spokane's Real Estate Climate

Spokane, Washington has seen a tremendous surge in popularity over the past decade, emerging as a sought-after destination for its mix of affordability, natural beauty, and a burgeoning job market. With the appeal of a mid-sized city that offers both urban convenience and outdoor lifestyle, Spokane continues to attract attention from out-of-state buyers and investors alike. Yet, amidst this popularity, a pressing question remains: Why are there so few homes for sale in Spokane right now?

As a Spokane real estate agent, I’ve written this article to help shed light on the housing shortage we’re experiencing and to offer guidance for both buyers and sellers navigating this market.

Historical Housing Trends in Spokane

Before 2020, Spokane maintained a relatively balanced housing market with predictable cycles of supply and demand. However, the COVID-19 pandemic triggered an unexpected shift in the real estate landscape. Remote work allowed people to relocate, interest rates dropped to historic lows, and urban flight began in earnest. This led to a dramatic surge in demand for homes, with inventory quickly depleted and never fully recovering to pre-pandemic levels.

So Why Are There So Few Homes For Sale in Spokane Right Now?

One of the biggest contributors to Spokane’s low housing inventory is the phenomenon of homeowners holding onto low-interest mortgages. Many who locked in rates under 3% are hesitant to sell and purchase a new home at today’s significantly higher rates. Meanwhile, the pace of new construction hasn’t kept up, as local builders face a combination of permit delays and rising material costs. Additionally, investor activity in Spokane has increased, with many properties being bought up and turned into rentals, further tightening the available inventory.

Migration and Demand Pressures

The influx of buyers from high-cost areas like Seattle, Portland, and California has dramatically increased demand in Spokane. With the median home price significantly lower than those markets, Spokane presents a more affordable and attractive option. This migration, while beneficial for local economic growth, has intensified the housing crunch, making it harder for first-time buyers and longtime residents to find homes.

Economic Forces at Play

Mortgage rate volatility has played a significant role in the current market. As interest rates climb, both buyers and sellers become more cautious. Inflation and economic uncertainty have also contributed to a slowdown in construction and buying activity. With affordability being a growing concern, especially for middle-class families, the market has become even more competitive.

Policy and Regulatory Challenges

Local zoning restrictions, slow permitting processes, and inconsistent regulations between city and county levels have made it difficult for developers to build new housing quickly. While some policies aim to preserve, they can also hinder the construction of much-needed multi-family units and affordable housing.

The Role of Remote Work and Lifestyle Changes

The rise of remote work has made Spokane an even more attractive location. People who previously needed to be near offices in larger metropolitan areas are now free to live in places with better quality of life and lower costs. This shift has increased demand without a corresponding increase in housing supply, further exacerbating the shortage.

The Impact of Short-Term Rentals and Investors

The popularity of platforms like Airbnb and VRBO has also had an impact. Homes that might otherwise be listed for sale or long-term rent are now being turned into short-term vacation rentals. Additionally, investors—many from out of state—are purchasing properties in bulk, limiting the number of homes available to local buyers.

Homeowners' Sentiment and the "Golden Handcuffs" Effect

Homeowners often feel “locked in” by their current mortgage. With rising rates, the prospect of giving up a 2.5% mortgage for a new one at over 6% is a hard sell. On top of financial concerns, many are emotionally attached to their homes, adding another layer of hesitation to the decision to sell.

The Construction Backlog and Builder Hesitations

Labor shortages, increased costs for materials, and market uncertainty have all led builders to proceed cautiously. While there is demand, the risk of overbuilding in a volatile market makes many developers hesitant. The result is a backlog in housing projects, with fewer new homes entering the market.

What This Means for Buyers and Sellers in 2025

For buyers, this means navigating a competitive market where acting quickly and strategically is essential. For sellers, it’s an opportunity to capitalize on low inventory and strong demand—if they are ready to make a move. Understanding timing and leveraging professional insight is more important than ever.

Forecast for Spokane's Housing Market

Experts predict that while inventory will remain tight in the near term, gradual improvements may occur as interest rates stabilize and new construction ramps up. However, don’t expect a dramatic shift overnight. The market is expected to stay competitive, especially for move-in ready homes in desirable neighborhoods.

How Homeowners Can Capitalize on Low Inventory

If you're a homeowner considering selling, now may be the perfect time. With few listings available, your home could attract multiple offers. Simple improvements like staging, curb appeal, and pricing strategies can maximize your return. Consulting with a local agent can ensure you hit the market with the right strategy.

How Buyers Can Navigate the Tight Market

For buyers, preparation is key. Get pre-approved for a mortgage, work with an agent who knows the local market intimately, and be ready to move quickly when the right home appears. Flexibility in location and home features can also improve your chances of success.

Why Partnering With a Spokane Real Estate Agent Is Essential

In a market as complex and competitive as Spokane’s, having a knowledgeable local agent is invaluable. From spotting new listings early to crafting winning offers, a Spokane-based professional can give you the edge. If you’re ready to buy or sell, I’m here to help you navigate this market with confidence and clarity.

Conclusion: Spokane's Path Forward in Housing

The housing shortage in Spokane is the result of multiple intersecting factors—economic, social, and regulatory. While the situation remains challenging, there are signs of gradual progress and opportunity. Whether you're buying, selling, or simply staying informed, working with a local expert can help you make the best decisions in this evolving market.

FAQs About the Spokane Housing Market

1. Why is Spokane experiencing a housing shortage in 2025? Spokane is facing a housing shortage due to a combination of high demand from migration, limited new construction, and homeowners holding onto low-interest rate mortgages.

2. Is Spokane still a good place to buy a home despite low inventory? Yes. Despite low inventory, Spokane remains an attractive investment thanks to its affordability, quality of life, and long-term growth potential.

3. When will the Spokane housing market improve? While it's difficult to predict exact timelines, experts suggest gradual improvement as interest rates stabilize and new construction projects are completed.

4. How can I buy a home in Spokane with so few listings available? Act fast, get pre-approved, work with a local agent, and remain flexible. Being well-prepared can give you a competitive edge.

5. Should I sell my Spokane home right now or wait? If you're ready, now is a good time to sell due to strong demand and limited competition. A local agent can help you evaluate your options.

About Me

My name is Nick Briggs

Being born and raised in Spokane I grew up knowing what a special place this city is, and it was my dream to help others create a life in this wonderful community by guiding them in real estate. I spent many years in the customer service industry, the experience of listening and communication showed me how much I truly loved helping people. I attended Gonzaga University and earned a Bachelor’s Degree in Business Administration to add to my knowledge of guiding, managing, negotiating, and listening to individuals, helping them achieve their real estate goals. Let me help you achieve yours today!

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