Economic growth is projected in North Idaho in 2026 due to a diversified economy and rapid job expansion, however the the availability of attainable housing in the region is expected to pose challenges, some economic development officials say.

The Inland Northwest tourism sector is experiencing modest, steady growth this year, and industry experts here and in North Idaho say they expect the trend to continue in 2026.

After a year marked by stalled projects and softening job numbers, Spokane’s manufacturing sector is poised to enter 2026 on firmer footing. Industry experts describe a manufacturing landscape that is stabilizing and quietly expanding, even as automation, global market pressures, and federal funding cuts impact the way companies grow.

Construction activity in Spokane County is expected to remain steady in 2026 while the industry faces uncertainty around interest rates, tariffs, and workforce shortages, industry experts say.

Interest rates and affordability have been major factors in stagnant commercial and residential real estate markets in Spokane and Kootenai counties this year, according to some industry experts.

As financial institutions look ahead to 2026, Inland Northwest banking leaders say the industry enters the new year with cautious optimism, steady deposit growth, and persistent affordability challenges that continue to shape the behavior of members and customers.

Many U.S. businesses are bracing for the sharpest rise in health care costs in more than a decade, with employer coverage costs expected to jump nearly 10%, says Melissa Koontz, senior vice president, employee benefits at the Spokane office of Alliant Insurance Services Inc.

Glyciome LLC, a biotech startup developing microbiome-based genital health products, has moved a major portion of its federally funded clinical trials away from Harvard Medical School and into the Inland Northwest.

To meet increasing demand, Northern Idaho Advanced Care Hospital has converted and relicensed 17 beds from long-term acute care to inpatient medical rehabilitation as part of a joint venture between Albuquerque, New Mexico-based Ernest Health and Coeur d’Alene-based Kootenai Health.

A quiet and persistent crisis has taken hold across the American health care landscape. Hospitals and health systems — already stretched thin on both resources and resilience — are facing a structural fragility that short-term fixes can no longer mask.