Business

Spokane was the Next Affordable City. Now, It’s Too Expensive.

Mr. Silbar, the real estate agent, has sold it twice in the past three years. The first time, in November 2019, he represented a buyer who offered $168,000 and got it with zero drama. This year it went back on the market, and Mr. Silbar listed it for $250,000. Fourteen offers and a bidding war later, it closed at $300,000.

When Mr. Silbar got into the business, he said, his clients were “nurses and teachers,” and now they’re corporate managers, engineers and other professionals. “What you can afford in Spokane has completely changed,” he said.

The typical home in the Spokane area is worth $411,000, according to Zillow. That’s still vastly less expensive than markets like the San Francisco Bay Area ($1.4 million), Los Angeles ($878,000), Seattle ($734,000) and Portland ($550,000). But it’s dizzying (and enraging) to long-term residents.

Five years ago, a little over half the homes in the Spokane area sold for less than $200,000, and about 70 percent of its employed population could afford to buy a home, according to a recent report commissioned by the Spokane Association of Realtors. Now fewer than 5 percent of homes — a few dozen a month — sell for less than $200,000, and less than 15 percent of the area’s employed population can afford a home. A recent survey by Redfin, the real estate brokerage, showed that home buyers moving to Spokane in 2021 had a budget 23 percent higher than what locals had.

One of Mr. Silbar’s clients, Lindsey Simler, a 38-year-old nurse who grew up in Spokane, wants to buy a home in the $300,000 range but keeps losing out because she doesn’t have enough cash to compete. Spokane isn’t so competitive that it’s awash in all-cash offers, as some higher-priced markets are. But prices have shot up so fast that many homes are appraising for less than their sale price, forcing buyers to put up higher down payments to cover the difference.

A dozen failed offers later, Ms. Simler has decided to sit out the market for a while because the constant losing is so demoralizing. If prices don’t calm down, she said, she’s thinking about becoming a travel nurse. With the health care work force so depleted by Covid-19, travel nursing pays much better and, hopefully, will allow her to save more for a down payment.

“I’m not at the point where I want to give up on living in Spokane, because I have family here and it feels like home,” she said. “But travel nursing is going to be my next step if I haven’t been able to land a house.”

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