Strong home sales and a tight rental market signal a healthy, growing Spokane economy. 

As the housing market expands and prices continue to increase, however, business and community leaders should keep a watchful eye on housing affordability, an issue that some of Spokane’s workforce is confronting now—and that more people could face to a greater degree in the near future. 

For now, homeowners and the Realtor community alike are enjoying a five-year run-up in home sales. The Spokane Association of Realtors reports nearly 7,600 homes sold through the Spokane Multiple Listing Service last year, up from about 6,900 sold in 2015 and a whopping 90 percent increase since 2011, when the housing market here bottomed out and just 4,020 homes were sold. 

To the relief of homeowners, the home prices have risen as sales have increased, with the median price reported through the MLS coming in at $195,000 last year, a healthy gain from the $154,900 median price in 2011.

While home prices have risen sharply over the past five years of gains, affordability has yet to be compromised (see related story on page 13). Data reported by Eastern Washington University’s Community Indicators suggest that housing in Spokane County remains among the most affordable in Washington state and is slightly more affordable than in the U.S. overall. 

Data on the apartment market here, however, paint a somewhat dimmer picture, in terms of affordability.

As the Journal reported last month, just over half of Spokane-area renters spent more than 30 percent of their income on rent in 2015, the most recent year for which data are available from the U.S. Census Bureau. That puts more than half of renters in a cost-burdened category. 

The apartment vacancy rate remains tight in Spokane County, at 1.6 percent, according to the most recent research from the Runstad Center for Real Estate Studies. For perspective, one source said a balanced market occurs at a 5 percent vacancy rate. 

The five-year trend in Spokane County shows average apartment rents have increased more than 25 percent in four years, according to Runstad Center data. Meantime, Spokane Community Indicators data show household income has remained stagnant in the county in recent years, meaning rent has been taking larger bites out of income. 

While the hundreds of living units under construction in the Spokane market currently could balance out the market somewhat, those new units typically command higher-than-average rents, which might exacerbate affordability issues. 

A recovered, healthy housing market is a welcome sight for property owners here who slogged through the Great Recession, watching with an envious eye as their counterparts on the West Side recovered more quickly and with greater gains. We’re among those who welcome the increases in value and demand. 

Collectively, however, keeping tabs on housing affordability issues is important for business and community leaders alike, so as not to be caught off guard by a greater burden on the Spokane workforce.