Spokane apartments had their strongest leasing quarter in three years this summer. Vacancy dipped, renters moved into more units than were built, and the number of apartments under construction has dropped to the lowest level in years. Rents, on the other hand, are still close to flat.
We follow the apartment numbers closely because they shape how we price every rental, including single family homes and duplexes. Here is what the third quarter data shows and how we would use it this winter.
The Third Quarter at a Glance
These figures come from CoStar data analyzed and published by ACTIV8 Real Estate on October 26, as of mid October.
Vacancy across Spokane apartments was 7.6%, down from 7.8% in the second quarter. If that second quarter number looks different from what you saw earlier this year, CoStar revised it. The figure first reported was 7.3%.
Renters absorbed about 548 units on net during the quarter. That is the most in any quarter since at least 2023, and it was more than the 494 new units that opened over the same months.
The average asking rent was $1,391 a unit, up about 1.1% from a year earlier. For comparison, CoStar puts national apartment vacancy at 7.8% and the national average asking rent at about $1,800.
How Each Part of the County Is Doing
The countywide number covers a wide range. West Spokane County is the tightest part of the market at 3.7% vacancy, with an average asking rent of $1,444 and nothing new under construction. The South Hill and the rest of South Spokane sit at 6.6% with very little new supply coming, and rents there average $1,427.
Spokane Valley is the largest apartment submarket in the county, and it filled more units than any other area over the past year, about 511. Vacancy in the Valley is 6.1% and the average asking rent is $1,409. More supply is on the way there. About 318 units are under construction, led by the 192 unit Saltese Creek Apartments, which is expected in May 2027.
Downtown vacancy is 8.4% with an average asking rent of $1,298. Demand downtown was nearly flat over the past year, and another 189 units are still being built.
North Spokane has the most room to fill. After about 617 new units opened there in the past 12 months, vacancy is 10.7% and asking rents slipped 0.2%. According to ACTIV8, this is where concessions are most common right now.
Newer Buildings Filled Up and the Middle of the Market Softened
A year ago, the newest and most upscale buildings were close to 10% vacant after a wave of openings in 2024. They are now at 5.1%. Landlords got there largely with concessions, and asking rents in that group are down 0.2% from a year ago.
Every apartment that opened this year was in the middle of the market, the buildings CoStar rates as 3 Star. Vacancy in that group rose from 6.6% to 8.5%, even though its asking rents went up 1.7%. Older and more basic buildings are at 7.6% vacancy, with average asking rents of $1,081.
This is relevant to house and duplex owners because a renter shopping in the $1,400 to $1,600 range may be comparing your listing with a newer apartment that is offering a free month.
Did the Fires Change the Numbers?
Some of the third quarter demand likely came from the August fires, which destroyed hundreds of homes and forced tens of thousands of people to evacuate. ACTIV8 notes that the timing lines up but that the data cannot separate households displaced by the fires from normal demand.
We would be careful about reading too much into one strong quarter. In the first two weeks of the fourth quarter, net absorption was only 16 units. If demand tied to the fires fades as families rebuild or settle elsewhere, vacancy could tick back up this winter.
Why 2027 Could Give Owners More Room on Rent
The bigger change for next year is on the supply side. Only 603 apartment units are under construction across the market, compared with a five year average of about 1,600. About 225 of those are expected to open by the end of this year, and the largest remaining project is 192 units.
Once those last buildings lease up, there will be far fewer new units competing for renters, and ACTIV8 expects the balance to shift toward landlords in 2027. That seems like a fair read to us, with the caution that rent growth has been near 1% for more than a year. The state cap for 2027 is 10%, well above where the market is, so for most owners the notice period will matter more than the cap. Inside Spokane city limits that can mean 180 days. Our checklist of new landlord rules for 2027 walks through the timing.
What This Means If You Own a House or Duplex
These figures cover apartment buildings, so they work as a guide for single family homes and small multifamily properties rather than a direct measure. For a broader look, Zillow's rental data for Spokane showed an average asking rent of $1,450 across all listed property types in late October, with three bedroom listings averaging about $2,100.
Location matters more than usual right now. A house on the South Hill or on the west side of the county faces less competition from new apartment buildings than a house in North Spokane, where concessions are common and new units are still leasing up.
A Note for North Idaho Owners
Coeur d'Alene apartment vacancy is 8.8% with an average asking rent of about $1,620 a unit, according to ACTIV8. That is well below the 16.4% peak the market hit at the end of 2024, after its own wave of new construction.
How We Would Price a Rental This Winter
Winter is already the slowest season for leasing, and about 225 new apartment units are set to open before the end of the year. If you have a vacancy coming up, here is how we would approach it.
Price the rental to lease within about two weeks. In our post on the real cost of rental vacancy, we showed that each extra week empty on a $1,600 rental costs roughly $370, which is more than most small rent premiums earn back.
If your rental is in North Spokane, look closely at what nearby apartments are offering. ACTIV8 expects concessions there to continue through the middle of 2027, and renters will be comparing your listing with those offers.
Think about lease length as well. A lease that ends in late spring or summer gives you a better season to lease the home next time. Keep in mind that under state law, rent for a month to month tenancy cannot be more than 5% above the rent for a comparable lease with a fixed term.
Thinking About Buying or Selling?
Apartment sales are slow. Sales volume over the past 12 months was about $80 million, less than half the five year average, and deals closed an average of 11.6% below asking price. Buyers are paying for older buildings with room to improve, while newer, stabilized buildings are trading at cap rates in the low to mid 6% range. If you own a small multifamily property and are weighing a sale against holding, the supply numbers over the next few quarters are worth watching.
Want to Know Where Your Rental Fits?
Countywide numbers only go so far. If you would like to know what your property should rent for right now, request a free rental analysis and we will look at your address, the competition nearby and the timing of your lease. You can also reach Doc and the team at 509.795.1031.
Source: CoStar Group data as analyzed by ACTIV8 Real Estate in its Spokane Multifamily Market Report Q3 2026, published October 26, 2026. Zillow figures from Zillow Rental Manager, updated October 21, 2026.
