Why Real Estate Investors are Looking at Spokane
Spokane, Washington’s housing market boomed in 2021, and it’s projected to be the third-hottest U.S. market in 2022 because of housing demand and affordability.
Growth in Spokane’s housing market during 2021 was driven by its affordable housing prices. Compared to larger markets, Spokane’s housing and rent prices are considerably lower.
Housing demand is tight in Spokane, but savvy investors have a great opportunity to scale through new construction projects. For investors considering real estate investing in Spokane, affordable housing prices combined with increasing, yet still attractive, rents come together to create positive ROI.
What Makes Spokane One of the Best Places to Invest in New Construction?
Behind Spokane’s Market Growth
Spokane is slated to be one of the best cities to invest in real estate during 2022, and its growth has been the result of growing home values, a diverse economy, increasing rent prices, and buyers giving up on more expensive markets.
Median overall home prices for single-family units in Spokane averaged $380,000 in 2021, and experts forecast median sale prices to hit close to $427,000 in 2022. Despite that increase, Spokane’s housing market continues to grow because it still falls squarely in the affordable range, making it an excellent city for those interested in real estate investing in Washington State.
One reason to invest in Spokane real estate now instead of waiting is that prices are appreciating so fast. For example, home values increased by more than 13% in 2019 and grew by roughly 30% in 2021. According to Neighborhoodscout.com, single-family homes are the most common types of housing in Spokane – accounting for 66% of the city’s housing units.
While Spokane housing is an affordable option for real estate investors, the inventory leaves something to be desired. Spokane currently has about a 14-day supply of available inventory, and most homes are only on the market for about 21 days before being snatched up.
Despite the limited inventory, Spokane still provides more investment opportunities than nearby Seattle and Portland, which makes it an attractive option for real estate investors – including those investors interested in the city’s new construction market. Thanks to accessible construction loans for investors, Washington investment properties are within reach for real estate investors.
In this builder-friendly atmosphere, investors looking for profit need a lender that offers new construction loans that cover everything from spec houses to build to rent homes. Lima One Capital closes quickly and makes the construction draw process simple and quick throughout the life of the loan.
Spokane, Washington offers a small-town atmosphere with the advantage of a vibrant downtown featuring big-city amenities, including a wide variety of restaurants, entertainment, breweries, and wineries. Because of its atmosphere and diverse job market, Spokane attracted retirees and remote workers who left more expensive metros in search of property with more space and more affordable home prices.
Ranked in the top 10 markets for millennials, Spokane boasts a growing job market across several industries including mining, forestry, agribusiness, and tech sectors with remote work opportunities attractive to the 25-to-40-year-old demographic.
Millennial-attracting real estate markets typically offer affordability, strong job markets, and vibrant downtowns – all things investors will find in Spokane.
With remote work opportunities on the rise, it’s given people the freedom to rethink where they want to live – many of them trading larger cities for smaller, more affordable markets like Spokane. Homebuyers have given up on pricey Northwest markets like Seattle and Portland in favor of growing cities like Spokane where the median home price is just below $420,000.
What Investors Should Consider
Investors who own single-family homes and those taking advantage of the city’s booming new construction market are seeing good returns in Spokane.
Spokane’s new construction market set a record in 2021 with $1.3 billion in projects. During the 2021 construction year – August 1 through July 31 – Spokane saw new projects on 5,350 property parcels – an increase of 397 (8%) YOY.
If you’re looking for new construction loans in Washington state, Lima One Capital offers the best real estate investment loans in the USA. Our construction management program is second-to-none, and everything is done in-house which means our draw process is quick and easy.
Lima One’s new construction lending program offers new build construction loans, construction to permanent loans, as well as options for urban in-fill, spec homes, model homes, and teardown/rebuild real estate investment projects. Our team of experienced private lending professionals will help guide you through getting a new construction loan for your next investment.
If you’re looking to invest in the Washington state real estate market, or in any of the other 46 states we serve, contact us today to get the best financing options for your next real estate investment in Spokane or any of our lending areas.