Spokane, WA– Spokane Valley’s population is increasing at a faster rate than that of Spokane, while the number of building permits is declining.
On Tuesday, officials in Spokane Valley were presented with an economic report highlighting a thriving population in contrast to the neighboring area to the west, despite a decline in building permits within the Valley.
In 2003, The Valley separated from Spokane and established itself as an independent municipality. The division created by Havana Street is subtle, making it difficult to discern the boundaries between the two areas. The urban landscapes and economic systems are deeply connected, yet they exhibit significant distinctions.
Spokane County faces challenges in meeting the rising housing demands as an influx of people moves to the area. Recent forecasts suggest that the county could see an influx of over 100,000 residents by 2046, with more than 20% expected to establish their homes in Spokane Valley.
“Since you incorporated in [2003], you’ve been growing at an average annual rate of 1.3%, which is about twice the rate of the U.S.,” Dr. Patrick Jones, executive director of the Institute for Public Policy & Economic Analysis at Eastern Washington University, told the city council.
The Valley’s population stands at approximately 109,000, recently surpassing the county’s growth rate, which it usually aligns with, by about 0.4%. Spokane, with a population nearing 233,000, is experiencing a modest annual growth rate of just 0.13% for 2024.
Jones noted that approximately 19% of the county resides in the Valley, which has shown a “remarkably stable” trend since its incorporation; in contrast, Spokane’s portion has decreased from 44% to 41% during the same period.
Nonetheless, Spokane Valley faces challenges in matching its neighbor regarding building permits.
Permits for single-family homes in Spokane have increased by approximately 20% compared to the same quarter two years prior, but Jones noted a general decline in the Valley during that time.
The latest fiscal quarter marked a significant downturn for the Valley, recording just 23 SFR permits issued during the third quarter. This figure starkly contrasts with the recent high of 78 permits in the second quarter of 2022, highlighting a troubling trend not seen in nearly three years. During the third quarter, Spokane granted 74 SFR permits, while its population is also twice that of the Valley.
The difference is increasingly noticeable yet also perplexing when examining permits for multi-family buildings. Jones additionally offers economic reports for Spokane, focusing on tracking multi-family permits by units instead of the individual buildings permitted as done in the Valley.
Spokane saw a remarkable increase in the approval of multi-family units last year, surpassing the previous high of around 500 set in 1996, although the majority are distributed across a limited number of buildings. A total of 866 was recorded by the city by the end of the third quarter this year, with 723 units coming from that specific quarter.
In 2023, Spokane Valley granted approximately 87 permits for multi-family buildings, though the exact number of units resulting from these permits remains uncertain. As of the third quarter of this year, the city has issued only 27, a significant drop from the 76 issued by the same time last year.
