In early 2007, a typical first-time home buyer household in Spokane County had 71% of the income to quality for financing for a typical starter home. A first-time home buyer household is one with household income at 70% of the median. Compared to Washington State, where first-time home buyers had only 52% of the income, things appear positive for Spokane.

But compare this to 1998, when Spokane’s first-time home buyers had 95% of the income required to purchase a typical starter home. The ratio of income to house price has slipped consistently since then. Homeownership – one path to wealth and housing security for lower-income and minority Americans– has become less attainable for Spokane residents.

A related question involves the national sub-prime lending crisis. Sub-prime mortgages are home loans offered at a rate above prime or with easy initial terms to individuals who wouldn’t otherwise qualify for prime rate loans. A national crisis has arisen as these initial terms now face rising interest rates, resulting in foreclosures, declining home values, and a cohort of borrowers walking a financial tightrope.  The question is, will Spokane be impacted? And if so, to what degree? This is one area, however, where current local data are not readily available.

View the First-Time Home Buyer Affordability indicator.

To find out what affordable housing organizations are doing in Spokane visit the Spokane Low Income Housing Consortium