Coeur d’Alene Multifamily and Apartment Market Report – Q1 2025 Trends in Vacancy, Rents, and Construction

ByEric

The Coeur d’Alene multifamily real estate market began 2025 with signs of slow recovery following several years of overbuilding and elevated vacancies. While rent growth has largely stalled, new construction has nearly ground to a halt, setting the stage for stabilization over the next 12–18 months.

Data sourced from CoStar, Crexi, broker-reported activity, and publicly available information as of April 2025.

Don’t want to read? Watch the Q1 2025 Coeur d’Alene Multifamily report here:

Market Snapshot – Q1 2025

  • Vacancy Rate: 15.3%
  • 12-Month Rent Growth: 0.1%
  • 12-Month Deliveries: 968 units
  • 12-Month Absorption: 610 units
  • Units Under Construction: 24 (only one project)
  • Average Asking Rent: $1,585/month

Vacancy Starting to Trend Down

Vacancy in the Coeur d’Alene apartment market peaked in late 2023 at 16.3% and has now pulled back slightly to 15.3%. While this remains well above the historical average of 6.4%, the trend is finally reversing after a significant construction boom.

The slowdown in construction and improved leasing velocity are helping to ease the oversupply.

  • 4 & 5 Star properties: 15.0% vacancy
  • 3 Star: 17.8%
  • 1 & 2 Star: 8.2%

Post Falls continues to carry the largest share of vacancy in the region, while Hayden and central Coeur d’Alene are seeing relatively stronger absorption.

Rent Growth Stabilizes After Two-Year Slide

Average asking rents are now at $1,585/month, with just 0.1% year-over-year growth. This comes after a major cooldown from the 2021 peak, when annual rent growth exceeded 11%.

Rent performance by segment:

  • 4 & 5 Star: $1,652/month (down 1.8% YoY)
  • 3 Star: $1,615/month (up 1.0%)
  • 1 & 2 Star: $1,272/month (up 1.9%)

With construction slowed and supply pressures easing, Coeur d’Alene rents are expected to rebound closer to their historical average of 2.2% annually, with potential 4% growth projected by mid-2026.

Construction Nearly Halts as Developers Wait for Stabilization

After years of aggressive building, construction has slowed sharply. In the past 12 months, 968 units were delivered, but only one project is currently under construction:

🔨 Project Underway:

  • The Lucille | 293 E Appleway Ave 24 units | 3 stories | Delivery: July 2025 Developer: CHUBBS NORTH, LLC

With just 0.3% of inventory under construction, the market is taking a wait-and-see approach, which could accelerate a return to balance and rent growth.

Multifamily Investment Activity

Sales volume has been quiet in Coeur d’Alene, with just three transactions over the past 12 months. Pricing has declined from its 2022 peak:

  • Average Price/Unit: $124,354
  • Cap Rate: 6.8%
  • Recent notable sale: Chelsea Place (11 units, 0% vacancy, sold May 2024)

Despite limited sales activity, improving fundamentals and declining vacancy could entice more investors back into the market by late 2025.

Submarket Overview

SubmarketVacancyRent GrowthAvg Asking Rent
Coeur d’Alene15.3%+0.1%$1,585
Latah5.2%+1.4%$966
Nez Perce1.2%+3.6%$1,239

The Coeur d’Alene submarket accounts for over 80% of total inventory, and also carries the highest vacancy rate. However, Nez Perce and Latah submarkets show stronger rent growth and lower vacancies, indicating demand for more affordable units.

Economic and Demographic Context

Population growth remains one of Coeur d’Alene’s strongest fundamentals. Idaho gained more than 30,000 residents in 2024, with a net inflow of 14,500 from California alone.

Local economic drivers:

  • Top sectors: Government, healthcare, hospitality
  • Major employers: Kootenai Health, Coeur d’Alene Resort, Bread Financial
  • Median household income: $81,090 (above national average)
  • Population: 190,000+ and growing at 1.9% annually

The region’s demographic momentum supports long-term demand for rental housing, particularly in middle-market and workforce housing segments.

Outlook: Stabilization in Sight

With construction activity down nearly 90% from 2023 levels and absorption on the rise, the Coeur d’Alene multifamily market appears to be stabilizing.

Key takeaways for owners and investors:

  • Vacancy is likely past peak
  • Rent growth could return to 2–4% annually by 2026
  • Limited new supply will benefit stabilized assets
  • Opportunities exist for value-add repositioning as demand returns

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📩 Need help leasing or selling your Coeur d’Alene multifamily property?

Reach out to Eric Peterson at [email protected] or (509) 903.9077

We specialize in multifamily brokerage, valuation, and investor guidance throughout North Idaho.

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