Panelists, including local economists and economics professors, say job growth is slowing and the housing market remains tough for people moving to the region.

SPOKANE, Wash. — Greater Spokane Inc. (GSI) shared its 2026 economic forecast on Wednesday at the Spokane Convention Center, highlighting that employment and population growth are slowing, which could have ripple effects across the state and local economy.

“We are still seeing a positive growth for Spokane, just at a slower pace,” said Steve Scranton, the chief economist with Washington Trust Bank. 

Community groups across the Inland Northwest discussed the region’s job market, housing market, and more. 

One key point brought up at the meeting was that job growth is slowing. But experts noted that the growth depends heavily on the industry, and people moving into the area. 

“A lot of demand growth the region has enjoyed over the last decade comes from literally a whole people moving here,” said Grant Forsyth, the chief economist with Avista. 

Forsyth also noted that home prices in the region have not dropped, even as the economy softens. He says prices will only fall if supply jumps or if a recession hits.

“So the reality is we are stuck with this affordability issue, and it is not going away,” said Forsyth. 

Whitworth University Economics Professor Vange Hochheimer also noted that the government shutdown continues to strain the local economy. She added, with one in four Washingtonians on Medicaid, funding cuts from Trump’s spending bill could make it worse.

“While Washington still maintains broad coverage, we are starting to see early signs of strains in the system as federal support phases out,” said Hochheimer. 

Panelists also highlighted some positive trends. They noted the budget bill could inject up to three trillion dollars into the economy in 2026. 

Also, officials say they expect an increase in tax refunds by more than 70 billion dollars compared to last year. This is due to withholding rates stayed about the same while tax liabilities are set to drop. So, analysts expect a surge in tax refunds when 2025 returns are filed in 2026. 

Some panelists argued that a potential issue Spokane may face is new taxes introduced to Washington State may threaten businesses to move across the state line to Idaho.

“I think that’s the real risk for Spokane. We are so close to the Idaho border, new business will start to say you are not a tax-friendly state anymore, so I am going to go to Post Falls,” said Scranton.