Q3 2025 Coeur d’Alene Multifamily Market Update | Trends, Challenges & Outlook
Overview
The Coeur d’Alene multifamily market showed signs of stabilization through Q3 2025, following an active two-year delivery cycle. Vacancy rates have plateaued after a surge in new supply, while rent growth remains modest but positive. With construction now largely paused, fundamentals appear to be recalibrating toward balance heading into 2026.
- Vacancy Rate: 10.0% (↓ from 16.2% in 2024)
- 12-Month Absorption: ~703 units
- 12-Month Deliveries: 449 units
- Annual Rent Growth: +0.9%
- Average Asking Rent: $1,588/month
- Cap Rates: ~6.7% (vs. 6.0% U.S. average)
Data sourced from CoStar, Crexi, broker-reported activity, and publicly available information as of October 2025.
Don’t want to read? Watch the Q3 2025 Coeur d’Alene Multifamily report here:
Watch the Q3 2025 Market Update Video
Vacancy & Leasing Trends
The vacancy rate improved to 10%, reflecting a steady rebound from oversupply in 2023–2024. While Class A communities still face elevated concessions, stabilized workforce housing has returned to near-normal occupancy.
“We’re seeing the true availability narrow—headline vacancy doesn’t tell the whole story when sublease and incentive units are factored in,” notes Eric Peterson in the Q3 video update.
Forecasts suggest vacancy dipping below 9% by late 2025, aided by a pause in construction and a slowing delivery pipeline.
Rent Performance
Average asking rents rose slightly to $1,590/month, with effective rents growing 1.4% year-over-year. Class A assets recorded the smallest rent gains (+0.4%) as landlords offered lease-up concessions, while Class B and C properties posted steadier increases of 1.4–1.6%.
The data shows a modest rebound in rent per square foot after a dip during 2023, suggesting a return to gradual inflation-aligned growth. Rent growth is projected to end 2025 around 1.4%, aligning closely with national trends.
Construction Pipeline
Development activity has slowed to nearly zero. No new projects are currently under construction in Coeur d’Alene. After 2023’s record deliveries—over 1,300 units—the 2025 pipeline totals just 170 units, signaling a near-term supply reset.
This cooldown should relieve upward pressure on vacancy and support moderate rent recovery through 2026.
Investment & Sales
Transaction volume remains limited, with 117 units sold in the past 12 months. Pricing averages $130,000 per unit, still well below national benchmarks. The market cap rate of 6.7% reflects cautious investor sentiment amid higher interest rates, though improving fundamentals could attract renewed regional capital by mid-2026.
Older 2–3 Star garden-style properties dominate inventory, while few large institutional players hold significant share—keeping the market accessible to private investors.
Economic Context
Kootenai County continues to grow steadily, with a population of 191,000 and median household income of $80,000 (+5.3% YoY). Job growth remains led by healthcare, tourism, and construction, which together represent nearly 40% of total employment.
Economic resilience, combined with limited new housing supply, supports a generally positive outlook for 2026–2027.
Key Takeaways for Investors
- Vacancy correction: Down from 16% to 10%, with sub-9% expected next year.
- Rent recovery: Gradual improvement, ~1–1.5% growth expected through 2026.
- Pipeline pause: No new projects = short-term equilibrium ahead.
- Cap rates: Holding steady at ~6.7%, creating selective buy opportunities.
- Macro backdrop: Population and income growth sustaining long-term demand.
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Reach out to Eric Peterson at [email protected] or (509) 903.9077
We specialize in multifamily brokerage, valuation, and investor guidance throughout North Idaho.
