Spokane Multifamily Market Report — Q2 2026

Spokane’s multifamily vacancy rate was 7.3% in Q2 2026, essentially flat year over year, while asking rents rose just 0.6% to $1,395 per unit (CoStar). Trailing 12-month sales volume totaled about $124 million — well below the five-year average near $189 million — at a market cap rate of roughly 6.2%. New construction fell to its lowest level since 2021, with about 1,216 units under construction and annual deliveries projected near 800 units in 2026–2027, down from more than 2,000 at the 2024 peak. Absorption of 735 units roughly matched 815 deliveries, keeping the market in balance. ACTIV8 Real Estate expects Spokane multifamily vacancy to hold near 7% with modest rent growth as a thinning supply pipeline meets steady renter demand.

Spokane’s apartment market settled into a plateau in the second quarter of 2026. After the historic supply wave and price run-up of the post-pandemic years, the market has downshifted into a phase of stabilization — vacancy holding steady, rents barely moving, and transaction activity muted. But beneath that flat surface, a sharp pullback in new construction is quietly reshaping the outlook for owners and investors across Spokane, Spokane Valley, and North Idaho.

Spokane Multifamily Key Statistics — Q2 2026

Metric	Q2 2026	Detail
Multifamily vacancy rate	7.3%	Essentially flat year over year
Average asking rent	$1,395/unit	+0.6% year over year
Market cap rate	6.2%	~5.2% premium product to ~6.9% value-add
Trailing 12-mo sales volume	$124M	Private investors ~79% of volume
Outlook	Vacancy ~7%	Modest rent growth as deliveries slow

Spokane Multifamily Market Overview — Q2 2026

The defining feature of the Spokane multifamily market in Q2 2026 is a plateau. Market vacancy held at 7.3%, essentially unchanged over the trailing year and well below the 9%-plus peak reached in late 2024. Asking rents grew just 0.6% to $1,395 per unit, and effective rents — which account for the concessions landlords are still using to fill space — sat at $1,343. Measured against roughly 3.6% inflation, that means most owners lost modest ground in real terms.

What separates Spokane from the national narrative is timing. While national forecasters are calling for a 2026 rent-growth reacceleration toward 2–3%, Spokane peaked earlier in the cycle and is stabilizing flatter. Vacancy stopped rising because demand and supply matched up — but the balance is held together by incentives rather than pricing power. Until the last of the 2024 supply wave finishes leasing up, landlords lack the leverage to push rents, which is why growth remains near flat even as occupancy holds steady.

SPK Multifamily Vacancy, Rents & Absorption — Q2 2026

Over the trailing 12 months, the market absorbed 735 units against 815 deliveries — a tight, near-balanced ratio that explains the steady vacancy. Performance varies sharply by quality tier. The 4 & 5 Star segment (about $1,620 asking) saw rents slip roughly 0.6% as new luxury supply competed head-to-head. The 3 Star segment (about $1,434) posted the strongest growth at around 1.4%, but it is also the most exposed to near-term vacancy pressure because the remaining construction pipeline has shifted toward it. The 1 & 2 Star segment (about $1,043) grew roughly 1.1%, supported by affordability.

At the submarket level, Spokane Valley continues to carry the market:

Multifamily Property Sales in Spokane — Recent Transactions

Investment activity remained subdued, with trailing 12-month volume near $124 million and private investors accounting for roughly 79% of it. The deals that closed segmented sharply by quality. At the premium end, the 2025-built Dan Apartments in Spokane Valley (32 units, 97% leased) traded in February 2026 for $7.3 million — about $226,600 per unit at a 6.0% cap. In contrast, Cedar Ridge in Spokane, a 1978-vintage, 55-unit property that was only 58% leased, sold in June 2026 for $5.2 million, just $95,000 per door.

The year’s largest transaction, the 210-unit Eagle Rock in Spokane Valley, closed at $37.1 million ($176,700 per unit, 5.2% cap) — a yield that penciled only because the buyer assumed the seller’s low-rate in-place debt. Village on Broadway (148 units) traded at $172,300 per unit at a 5.9% cap. The through-line: in today’s rate environment, capital is paying a premium for certainty, and favorable assumable financing can be worth more than the building itself.

With Spokane apartment cap rates near 6.2% and new deliveries slowing, stabilized properties are holding their value. Want to know what your multifamily property is worth in today’s market?

Multifamily Cap Rates & Investment Activity — Inland Northwest

The market cap rate held near 6.2%, but the spread by quality is the real story — trades ranged from about 5.2% on the debt-advantaged Eagle Rock sale and 6.0% on new premium product to roughly 6.9% on older value-add assets. That gap reflects how difficult value-add math has become: with renovation and construction debt in the 8–9% range and operating expenses (insurance, taxes, payroll) up more than 20% over three years, older-asset buyers demand a steep discount to take on the risk.

The backdrop is a hawkish Federal Reserve. The Fed held its benchmark rate at 3.50%–3.75% in June 2026 — a fourth consecutive hold — and signaled that meaningful cuts are pushed to 2027 or later. With the 10-year Treasury near 4.49%, the late-2025 expectation of cap-rate compression has been shelved, and financing costs are set to remain well above the 2020–2021 era.

Inland Northwest Multifamily Market Forecast — 2026

Near term, expect the plateau to hold: demand should track the shrinking pace of deliveries, keeping vacancy near 7% and rent growth modest. The 3 Star tier is the segment to watch as the last new projects compete for lease-up. The more consequential story is the two-to-three-year setup. New construction has fallen to its lowest level since 2021, and annual deliveries are projected near 800 units — down from more than 2,000 at the 2024 peak. If high rates keep the pipeline thin while the $70 million Spokane Aerospace Tech Hub brings high-paying manufacturing and engineering jobs to the region, the market could face a genuine supply squeeze by the end of the decade. Markets held back by tight capital tend to move quickly once the pressure releases.

What Q2 2026 Means If You Own Spokane Apartments

If you own Spokane apartments, the market has settled into a plateau that rewards stabilized income. At a 6.2% market cap rate, every $10,000 of net operating income is worth roughly $161,000 in value — though pricing splits sharply by quality, from about 5.2% on premium product to 6.9% on older value-add. With vacancy at 7.3% and rents at $1,395 per unit, well-run properties with steady occupancy are best positioned as new deliveries slow.

• Thinking about selling? Start with a broker opinion of value to see where your property prices today, then our seller representation team runs the process.
• Holding for income? A stabilized market is a good moment to review property management and unit-level performance.
• Repositioning or leasing up? See how our leasing team supports Spokane multifamily owners.
• Compare your asset class: office, retail, and industrial.

Spokane Multifamily Market — Frequently Asked Questions

Spokane Multifamily Real Estate Broker — Eric Peterson, ACTIV8

This report is authored by Eric Peterson, President and Designated Broker of ACTIV8 Real Estate, LLC, a commercial brokerage based in Liberty Lake, Washington, serving Spokane, Spokane Valley, and the North Idaho market. Eric specializes in multifamily, retail, office, and industrial assets across the Inland Northwest, advising owners and investors on acquisitions, dispositions, and valuation. Every ACTIV8 market report pairs CoStar data with on-the-ground broker perspective.

Related Spokane & Coeur d’Alene market reports

• Spokane Office Market Report — Q2 2026
• Spokane Retail Market Report — Q2 2026
• Spokane Industrial Market Report — Q2 2026
• Coeur d’Alene Multifamily Market Report — Q2 2026
• All ACTIV8 market reports