Post Falls rental market sees plateau in asking rents amid rising vacancy rates

Post Falls City Council members discussed significant trends in the local rental market during their meeting on March 18, 2025. A key focus was the plateauing of asking rents in the area, which have remained steady at an average of $14.74 per month since 2021. This stagnation comes despite a surge in multifamily housing construction post-COVID, leading to a notable increase in vacancy rates.

The council learned that while new apartment units have been delivered to the market, the absorption rate—the speed at which these units are leased—has slowed. This has resulted in a temporary pause in rental price increases, as the market adjusts to the influx of new properties. Experts from Comoy and Associates indicated that the vacancy rate, which currently stands at 8.5%, is expected to decline in the coming months, potentially dropping to 7.7% by the first quarter of 2025.

The meeting highlighted the private sector's response to these market conditions, noting a significant decrease in the number of permits issued for new multifamily units—from several hundred in previous years to just 54 in 2024. This reduction reflects a cautious approach by developers as they monitor the rental market's health.

Additionally, the council clarified the methodology behind the reported vacancy rates, explaining that their approach includes all properties, unlike some reports that exclude newer units to avoid volatility. This comprehensive view allows city officials to better anticipate market trends and make informed decisions regarding future housing developments.

As the council moves forward, the implications of these discussions will be crucial for both current residents and potential newcomers, shaping the future of housing in Post Falls.