How Spokane’s Growing Tech Industry Could Affect the Housing Market

Published:
March 3, 2025
Last updated:
March 3, 2025
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The city of Spokane, Washington is poised to become one of America’s next major tech hubs, with a number of information technology and AI companies flocking to the area.

But how will this tech-driven growth affect the local real estate market in Spokane?

Will the market become more competitive for buyers? Will home prices rise above the national average, as they’ve done in other tech hubs like Seattle and Silicon Valley?

While no one can predict future Spokane real estate trends with complete accuracy, it’s reasonable to assume that major changes are in store for the Spokane real estate market. Let’s take a closer look at how Spokane’s growing tech industry could affect the housing market.

Spokane’s Rapidly Growing Tech Sector

The city of Spokane, Washington (and its surrounding area) is on track to become the next major tech hub for the United States.

Over the past few years, a number of tech-industry companies and startups have either relocated to or launched within the Spokane metro area. This growth is expected to continue going forward, partly due to the city’s friendly business climate. With a growing number of tech jobs in Spokane, more and more people will likely flock to the city.

According to the Spokane Chamber of Commerce:

“Spokane County’s tech sector is growing … Not only that, but our projected growth over the next five years sees us surpassing the national average. The data tells us that Spokane is on a trajectory towards becoming a thriving technology sector within the next decade.”

The city of Spokane has made numerous initiatives to attract businesses, including a streamlined permitting process and infrastructure investments.

Additionally, rents and home prices in Spokane County, Washington are relatively affordable by national standards. This helps local businesses attract and retain talent.

How It Could Affect the Housing Market

Currently, the real estate market in Spokane, Washington remains relatively affordable. In early 2025, the median home price for the surrounding county was around $380,000, just slightly higher than the national median.

The Spokane housing market also tracks closely with the nation in other real estate metrics, including the average time it takes for homes to sell.

But these conditions could change going forward, due to the ongoing tech industry growth in the Spokane area. If we look at the history of other tech hubs—such as Austin, Seattle, and Silicon Valley—we can make some reasonable predictions for Spokane as well.

Here’s how the growing tech industry could affect Spokane’s housing market going forward:

1. Rising Home Prices

As more tech workers relocate to the area, increased demand for housing will likely lead to higher home prices. This trend has been seen in other cities where tech growth attracts a higher-income demographic, as in California’s Silicon Valley.

2. Increased Rental Demand

With a surge in tech-related job opportunities, the influx of young professionals and remote workers could increase demand in the Spokane rental market as well. This in turn could lead to higher rental rates across the board.

3. Neighborhood Redevelopment and Gentrification

Areas close to new tech hubs and coworking spaces often see increased redevelopment and investment. While this can lead to improved infrastructure and amenities, it can also bring gentrification and change the character of long-established neighborhoods. Some areas in Spokane are starting to see these types of changes.

4. A Shift Toward Mixed-Use Developments

Tech growth often brings a demand for flexible living and working spaces. Such demand could encourage developers to pursue projects that combine residential units with office or retail space, similar to trends seen in other tech-driven cities.

5. Pressure on Local Amenities and Infrastructure

A rapidly growing population with higher income levels may place additional pressure on local services, schools, and transportation systems. These “growing pains” would prompt the need for further city planning and investment in public infrastructure, both in and around Spokane.

6. Increased Tech Startups and Job Opportunities

In addition to impacting the housing market, tech industry growth could alter the broader economy. Economic development groups and the Spokane Regional Chamber of Commerce have noted a significant uptick in tech job postings, as companies in software development, cybersecurity, and data services expand or relocate to the region. Going forward, this trend could expand and diversify the local economy in and around Spokane, Washington.

7. Infrastructure and Support Initiatives

The city has invested in modernizing its broadband infrastructure and supporting coworking spaces, creating an environment sconducive to tech innovation. Initiatives such as local tech incubators and public-private partnerships have provided the support needed to nurture early-stage companies.

Bottom line: The ongoing tech boom could fundamentally alter the Spokane real estate market over the coming years. Among other things, it will likely make the local housing market more competitive and more expensive for home buyers.

A Golden Opportunity for Home Buyers?

Real estate trends observed in other tech hubs across the U.S. suggest that Spokane home prices could rise steadily over the coming years.

But it’s still a relatively affordable housing market, for now.

This gives those looking at buying a home in Spokane an opportunity to get in early, purchasing a property while prices remain close to the national average. If prices climb significantly in the future, those who purchase a home in 2025 could build substantial equity over time. This is why it’s helpful to team up with a seasoned Spokane mortgage lender sooner than later to get your financing lined up before you start the house hunting process.

Comparison of Spokane, WA With Other Tech Hubs (Seattle, Austin, Denver)

Spokane, WA, is emerging as a growing hub for technology and innovation, but how does it compare to well-established tech cities like Seattle, Austin, and Denver? Below is an overview of the similarities and differences in terms of cost of living, job market, quality of life, and business environment.

Cost of Living

  • Spokane: Offers a significantly lower cost of living compared to major tech hubs. Housing prices are more affordable, making it attractive for startups and remote workers.
  • Seattle: High cost of living, particularly due to housing and rent prices, driven by the presence of tech giants like Amazon and Microsoft.
  • Austin: More affordable than Seattle but experiencing rising costs due to its growing popularity as a tech and cultural hub.
  • Denver: Similar to Austin, Denver’s cost of living has been rising due to increased demand for housing and a strong job market.

Job Market and Tech Presence

  • Spokane: Home to a developing tech scene with smaller startups and support from local universities.
  • Seattle: Dominated by major tech firms including Amazon, Microsoft, and a growing number of AI and cloud computing companies.
  • Austin: A thriving tech ecosystem with companies like Tesla, Apple, and Oracle expanding operations.
  • Denver: Strong presence in aerospace, cybersecurity, and blockchain technology, attracting top tech talent.

Quality of Life

  • Spokane: Offers a balanced lifestyle with access to outdoor recreation, lower traffic congestion, and a strong sense of community.
  • Seattle: Rich in cultural amenities but faces high traffic and weather-related challenges.
  • Austin: Known for its vibrant music scene and outdoor lifestyle, though summer heat can be intense.
  • Denver: Offers proximity to the Rocky Mountains, attracting outdoor enthusiasts and adventure seekers.

Business Environment

  • Spokane: Emerging as a business-friendly city with lower operational costs and government incentives for startups.
  • Seattle: Competitive business environment with a well-established infrastructure but higher taxes.
  • Austin: No state income tax and a booming entrepreneurial ecosystem.
  • Denver: Supportive of startups, with strong networking opportunities and access to venture capital.

5 Key Takeaways From This Report

Here are the most important points to take away from this guide:

  • Spokane’s tech sector is growing rapidly, attracting companies and startups due to a business-friendly environment and affordable housing.
  • Increased Spokane tech industry presence could lead to rising home prices and higher rental demand, similar to trends seen in other tech hubs.
  • Neighborhoods near tech developments may experience redevelopment and gentrification, changing their character and infrastructure.
  • Demand for mixed-use developments could grow, blending residential, office, and retail spaces to accommodate tech professionals.
  • Spokane’s expanding tech economy could also strain local infrastructure and amenities, requiring investment in transportation, schools, and city planning.

In conclusion, there are plenty of ways that Spokane’s growing tech industry could affect the housing market. If you’re thinking of getting into the local market, be sure to consult with a local real estate agent and seasoned mortgage company in Spokane.

Need a Home Loan in Spokane?

Sammamish Mortgage offers a variety of flexible mortgage options for home buyers in Spokane, WA, and serves the entire state of Washington, as well as Colorado, Idaho, Oregon, and California. Visit our website to get an instant rate quote or call us today to have your mortgage questions answered!

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