From Macro to Micro: Making Sense of Economic Trends as a Multifamily Operator in Eastern Washington

If you’re a multifamily investor or operator in markets like Tri-Cities, Spokane, or elsewhere in Eastern Washington, chances are you’ve listened to podcasts or read reports on national real estate trends and wondered: “That sounds interesting… but what do I actually do with this info?”.

Terms like macro-economic trends and micro-economic indicators get thrown around often. But what do they really mean for your next acquisition, renovation, or lease-up?

Let’s break it down—and more importantly, show you how to listen with a local operator’s mindset.

What Are Macro-Economic Trends?

These are the “big picture” signals that shape the national (or global) investment landscape. Think:

Interest rates
Inflation
Unemployment
Federal Reserve policy
National housing supply/demand imbalances
Migration patterns
Consumer sentiment

These trends affect everyone—but they hit different markets in different ways. For example, rising interest rates might kill a deal in Seattle, but in a market like Spokane where cap rates are higher and competition is lower, there might still be room to make a project pencil.

What Are Micro-Economic Trends?

Micro trends are what’s happening in your backyard. These include:

Local job growth (e.g., Hanford contractors in Tri-Cities)
In-migration from neighboring metros
Housing supply/delivery in your specific zip code
Rent growth or concessions at comparable properties
Changes in permitting or zoning
Local interest from small investors or out-of-state buyers

This is where your boots-on-the-ground knowledge is your superpower. You know the street corners that are gentrifying, which property managers are struggling to lease up, and which employers are expanding.

How to Listen to a Macro Podcast Like a Local Operator

The key is not to take macro commentary at face value, but to filter it through your micro market lens. Here’s how:

1. When you hear: “Multifamily is overbuilt”

Ask: Where? In Austin or Phoenix, maybe. But in Richland or Spokane, are we seeing the same volume of new supply? Probably not. In fact, smaller markets may be underbuilt, especially for quality workforce housing.

2. When they talk about “Cap rate compression is over”

Ask: What are buyers underwriting in my market?

Nationally, investors may be retreating from low-cap-rate markets where future growth is priced in — like a 4.5% deal in Portland banking on long-term appreciation. But in Tri-Cities, you might find a 6% cap deal with current cash flow, rent upside, and less competition. Same cap rate story — very different math. In fact two different 6% cap rate deals in the Tri-Cities market could involve very different math. One could pencil for long term returns while the other doesn’t. That’s why it’s critical to run your own numbers based on what your tenants, lenders, and exit scenarios look like.

3. When they mention “affordability crisis”

Ask: Are my tenants rent-burdened? In smaller markets, rents are often still below 30% of household income. This gives you room for value-add plays—something national investors might overlook.

4. If “interest rates are killing deals”

Ask: Do I have creative leverage options? Local banks may offer more flexibility. You may also have stronger relationships to negotiate rate buydowns or seller financing.

3 Practical Takeaways for Eastern Washington Operators

Macro sets the mood, but micro sets the move.Stay informed about national trends, but act based on local realities. Be nimble.
Look for dislocation.Macro fear often creates micro opportunity. If everyone’s pulling back, you may be able to secure better terms, better deals, or better tenants.
Leverage your local edge.You live here. You know what streets are turning. What types of units are in demand. Who’s hiring. Don’t underestimate the value of your intuition backed by local data.

Final Thought

Macro podcasts are like weather reports—they tell you about the climate. But you still need to step outside and check the conditions on your own block.

The more fluently you can translate big-picture economic talk into small-market strategy, the more confident and calculated your next investment decisions will be.