Oh, no, it's spreading. I don't recall which editor/journalism teacher in Oregon used to talk about this at ACES conferences, but apparently the word "spendy," meaning expensive, is quite common in the Northwest. Young people who have grown up there apparently can't believe the word isn't used everywhere, if I'm correctly recalling one of the conversations about the word. And I recall editors from other parts of the country mocking the word, which they believed to be a regional invention.
But not any more. I heard it used in an H&R Block commercial last night. And here are some explanations of the word.
And here's an example of usage in the Northwest, from the Everett, Wash., Herald.