Posted on by Patrick

2024 Tacoma Housing Trends

Tacoma’s housing market continues to evolve in interesting ways, offering opportunities and challenges for buyers and sellers alike. The slow increase in home prices, shifts in homebuyer habits, and concrete policy and growth initiatives predict moderately positive change for the Northwestern Pacific city. If you’re considering a move to or within the City of Destiny, here’s what you need to know about the current state of Tacoma’s real estate market.

 

December 2024

The Tacoma housing market in December 2024 has seen a minor increase in market dynamics and home prices over the past year.

Redfin Tacoma Housing Trends

Fluctuating Home Prices

According to Redfin, Tacoma’s median home price is $462,000 as of December 2024, which is a 6.2% increase from December of 2023. When comparing it to the previous month (November 2024), it is a striking 7.3% decrease. Overall, this demonstrates an upward fluctuation in home prices in the Tacoma area from 2023 to 2024.

Fluctuating Market Pace

Properties in Tacoma are now spending an average of 24 days on the market, a 4-day increase compared to the same period last year. (Redfin) Comparing this to November 2024, the Tacoma housing market saw a 1 day increase. Like with home prices, the market pace has seen an upward fluctuation in the amount of days it takes to sell an average house.

 

Competition Remains Notable

Most homes continue to receive multiple offers, with a reported score of 79, which is considered very competitive. This is the case for properties in desirable neighborhoods, while average homes are recorded to “sell for about 1% below list price and go pending in around 21 days,” says Redfin.

 

Sales Volume Trends

The market has seen approximately 182 home sales in December 2024, representing a staggering 19.2% decrease from 217 sales from the previous month. (Redfin) When comparing it to the same time last year (December 2023), the Tacoma housing market has seen a 30.9% increase in the amount of houses being sold. This demonstrates a significant increase in buyers’ interest while sales price continues to trend slightly upward. 

 

A Look at the Bigger Picture

Compared to Seattle, Tacoma’s medium sale price is significantly less expensive, a striking 55% difference between the two Washington cities. According to Redfin, “In December 2024, Seattle home prices were up 8.3% compared to last year.” 

In comparison, Tacoma saw a 6.2% increase in median sale prices from December of 2023. While the difference between these two percentages isn’t significant, the sheer fact that Seattle’s average home price is more than half the cost of an average home in Tacoma does highlight the notable difference in affordability between these two metropolitan areas.

 

What This Means for Homeowners and Buyers

For homeowners, the modest rise in home prices indicates an increase in property values, which can lead to greater profits for those looking to sell. However, the slow pace of sales highlights the ongoing importance of careful planning, effective staging, and patience throughout the process.

For buyers, the gradual yet steady seller’s market offers some extra time and space in regard to putting an offer and following through on a potential home. Still, Tacoma’s housing market remains highly competitive, with demand outpacing supply. As Realtor.com points out, “There are more people looking to buy than there are homes available,” which can extend the timeline for finding the right home.

George / Adobe Stock

How Tacoma Compares to Other Pacific Northwest Cities, December 2024

Median Home Prices

  • Tacoma: According to Redfin, the medium sale price is $462,300, showing a 6.2% increase from the same time last year (December 2023).
  • Seattle: Right now, the median home price in Seattle is $840,000, which is an 8.3% increase from December 2023. The Emerald City continues to be significantly more expensive than its nearby metropolitan counterparts. (Redfin)
  • Portland: “In December 2024, Portland home prices were down 0.29% compared to last year, selling for a median price of $489K,” Redfin reports. This is the only major city, aside from Olympia, in the Pacific Northwest that has seen a decrease in the medium sale price from December 2023.
  • Olympia: Olympia, WA, has seen a 3.6% decrease in the median sale price, highlighting the state capital’s increasing affordability. (Redfin)

Cost of Living

  • Tacoma: The cost of living in Tacoma is 12.5% higher than the national average, with an increase of up to 2.8% across all living expenses. When comparing the city to others, Seattle’s cost of living is 36.7% higher than the national average, and Portland’s is 25.4% higher. (Salary.com)
  • Seattle: The average cost of living in Seattle is 21.6% higher compared to Tacoma, while the established salary change would be 2.6%. To maintain the same living standard while earning 60,000/yr in Tacoma, you’d have to have a salary of $72,948 (Salary.com). This poses an issue for new Seattle residents, leading to a potential decrease in the overall standard of living.
  • Portland: “The cost of living in Portland, OR is 11.5% higher than in Tacoma, WA,” Salary.com reports. In comparison, employers in Portland pay 3.1% less than they do in Tacoma. This means former Tacoma residents would have more of a difficult time adjusting to the cost of living, with Portland being more expensive while jobs, on average, pay less.
  • Olympia: Olympia and Tacoma continue to be on the same wavelength in regard to the cost of living. Salary.com reports, “The cost of living in Olympia, WA is -1.6% lower than in Tacoma, WA,” with an estimated salary decrease of 2.3%. This comes out to a $-407.40 in disposable income, which isn’t much but does support the idea of Tacoma being more affordable. 

Market Dynamics

  • Tacoma: The average market time is currently 24 days, with desirable properties often receiving multiple offers from buyers. This is a 1-day increase from last month (November 2024) and a 4-day increase from December 2023. (Redfin)
  • Seattle: According to Redfin, the average market time for those living in the rainy city is 39 days. This is up by 13 days compared to last month and an 8-day increase from December 2023
  • Portland: Portland has seen the biggest increase, with the median days on the market being 51, which is 21 days more than it was last month. Additionally, the city of Portland has seen a 16-day increase from the same time last year, indicating a slower pace in average sale time. (Redfin)
  • Olympia: “On average, homes in Olympia sell after 34 days on the market compared to 17 days last year,” says Redfin. While this is significant, the market time remains stagnant compared to November 2024, remaining at an average of 34 days to sell.

Growth and Development Potential

  • Tacoma: The city of Tacoma has outlined several initiatives aimed at boosting housing supply, affordability, and diversity by 2025. The Home in Tacoma Project highlights plans to “promote mid-scale housing types, such as two and three-family attached housing and low-scale multifamily.” Additionally, it aims to “encourage more affordable housing units in areas where growth is happening more quickly through use of City incentives and bonuses.” These efforts represent a well-rounded strategy to support the city’s development and its residents. While the housing market remains somewhat stable, the minor increase in median sale prices and market fluctuations pose some challenges in achieving these goals.
  • Seattle: “The Comprehensive Plan is a 20-year vision and roadmap for Seattle’s future.” Seattle.gov reports. This vision is rooted in core values like environmental protection, enhanced quality of life, and economic growth. Despite the importance of these initiatives, Seattle’s housing market remains highly competitive and very expensive, posing significant challenges in effectively implementing the proposed strategies.
  • Portland: According to Portland.gov, Portland’s Comprehensive Plan is built on five guiding principles: economic prosperity, human and environmental health, equity, and resilience. With the equity component. In particular, emphasizing the increasing need for fair and affordable housing opportunities. However, Portland’s housing market, much like Seattle’s, remains highly competitive, which could hinder the plan’s progress.
  • Olympia: The City of Olympia’s Comprehensive Plan will address key issues such as housing, land use, transportation, parks and open spaces, utilities, and economic development. While the plan is designed to tackle a range of community priorities, Olympia’s current housing trends present moderate obstacles to fully achieving these objectives. (Olympiawa.gov)

 

Appeal for Buyers

Tacoma continues to attract Pacific Northwestern buyers due to a combination of affordability, a strong job market, and stellar views of nature. This minor metropolitan area is 32 miles southeast of Seattle and 31 miles northeast of Washington’s capitol, Olympia. Additionally, a lot of rich history and artistic influence is incorporated throughout the city alongside a restored urban waterfront. (Wikipedia)

 

Policy Developments

Recently, Tacoma City Council has passed the Home in Tacoma Plan which policies and regulations are said to take effect February 1, 2025. According to cityoftacoma.org, these initiatives include: “zoning and standards package, a landmark decision that paves the way for more diverse, affordable, and sustainable housing options throughout the city.”  These new incentives will likely improve Tacoma’s attractiveness as a city for buyers and visitors alike. 

 

November 2024

The Tacoma housing market has undergone modest changes in response to broader economic conditions and local market dynamics.

 

Home Prices Are Rising

According to Rocket Homes, Tacoma’s median home price is $480,300 as of November 2024, a modest 6.7% increase from last year. This moderate surge in home prices suggests a jump in market demand, as seen in many cities nationwide.

 

Market Pace Is Stable

Properties in Tacoma are now spending an average of 33 days on the market, 1 day down compared to the same period last year. This stable market pace shows little change in the time spent, allowing buyers the same amount of time to make informed decisions while still maintaining healthy market activity.

 

Competition Remains Notable

Despite the slower pace, Tacoma’s market continues to be competitive. Most homes receive multiple offers, though buyers are becoming more selective. Still, Tacoma’s market conditions are fiercely swayed toward a seller’s market. For properties in desirable neighborhoods, Redfin reports that they “sell for about 2% above list price and go pending in around 5 days.” 

 

Sales Volume Trends

The market has seen approximately 265 home sales in November 2024, representing a staggering 56.6% increase from 150 sales in November 2023 (Rocket Homes). This uptick indicates increased buyer interest in Tacoma’s relatively affordable market compared to Seattle.

 

A Look at the Bigger Picture

Compared to Seattle, Tacoma’s medium sale price is significantly less expensive, a measly 56.7% difference between the two Washington cities. According to Rocket Homes, Seattle’s average sale price in November 2024 is 846.9k, a 6% increase from November 2023. 

This notable difference highlights Tacoma’s affordability and somewhat stable housing market trends. According to RentCafe.com, “Seattle, WA housing is 112% more expensive than the U.S. average.” It is also 64% more expensive than the state average, making it increasingly difficult to afford a home in the Emerald City. 

 

What This Means for Homeowners and Buyers

For homeowners, the slight increase in home prices suggests higher property values and profits for residents planning to sell. While this may be the case, homes are slower to sell, which suggests the growing need for strategic planning, staging, and patience.

For buyers, the slow seller market provides more breathing room to make informed decisions. Despite this, the competitive nature of the housing market in Tacoma means “there are more people looking to buy than there are homes available,” says Realtor.com. Thus prolonging your search as a prospective buyer.

 

How Tacoma Compares to Other Pacific Northwest Cities, November 2024

Median Home Prices

  • Tacoma: According to Rocket Homes, the medium sale price is $480,300, showing a 6.7% increase compared to November 2023.
  • Seattle: Rocket Homes reports the median home price in Seattle is $846,900. This starkly contrasts the average home prices in other Pacific Northwestern cities. This comes out to a 6.1% increase from the same time last year.
  • Portland: Tacoma’s furthest neighbor, Portland, is reported to have a medium sale price of $542,300, a small 1.9% increase from November 2023. (Rocket Homes)
  • Olympia: According to Redfin, the medium sale price for Olympia homes comes out to $540,000. This is a 6.9% increase from last year’s numbers.

 

Cost of Living

  • Tacoma: According to Salary.com, “The cost of living in Tacoma, WA is -17.8% lower than in Seattle, WA. You would have to earn a salary of $49,350 to maintain your current standard of living [$60,000].” For individuals moving to Tacoma from Seattle, this is great news.
  • Seattle: The average cost of living in Seattle is 21.6% higher compared to Tacoma. To maintain the same living standard while earning 60,000/yr in Tacoma, you’d have to have a salary of $72,948 (Salary.com). This, on the other hand, poses great challenges for new Seattle residents. 
  • Portland: While Portland is less expensive than Seattle, Salary.com says, “The cost of living in Portland, OR is 11.5% higher than in Tacoma, WA,” You would have $8,750.60 less in disposable income if you decided to make this move.
  • Olympia: The difference in the cost of living between Tacoma and Olympia is less significant than Portland and Seattle. In Olympia, WA, it is 1.6% less expensive than in Tacoma (Salary.com).

 

Market Dynamics

  • Tacoma: The average market time is currently 33 days, with desirable properties often receiving multiple offers from buyers. This is a 1-day increase from November 2023. (Rocket Homes)
  • Seattle: According to Rocket Homes, the average market time for those living in the rainy city is 40 days. This is a 25.9% increase from last year, showing a significantly slower pace in home selling.
  • Portland: Additionally, the city of Portland saw a slower pace in average sale time, going from 38 days last year to 54 in November 2024. Rocket Homes says this is “up by 41.5% compared to last year.”
  • Olympia: The market time for homes sold in Olympia, WA, has increased by over 50%, 57.9% to be exact. Last year, the average home sold after 29 days; now it is 47 (Rocket Homes).

 

Growth and Development Potential

  • Tacoma: The city of Tacoma has outlined several action projects to increase housing supply, affordability, and choice. According to the Home in Tacoma Project this means “Promote mid-scale housing types, such as two and three-family attached housing and low-scale multifamily.” Additionally, “Encourage more affordable housing units in areas where growth is happening more quickly through use of City incentives and bonuses.” This suggests comprehensive initiatives to help the city and its people grow. Due to the slow sustainability of the housing market, Tacoma’s project action plan might be achievable with minor roadblocks.
  • Seattle: According to Seattle.gov, “The Comprehensive Plan is a 20-year vision and roadmap for Seattle’s future.” The project’s core values are to help protect the environment and increase quality of life and economic development. While these initiatives are important, the current housing market in Seattle is incredibly competitive and expensive, making this proposed plan difficult. 
  • Portland: Similarly, the city of Portland has its own Comprehensive Plan, which includes five guiding principles. These principles include economic prosperity, human and environmental health, equity, and resilience. Equity, in particular, seeks to further affirm fair and affordable housing. Though, like Seattle, the city of Portland’s housing market is still very competitive. (Portland.gov)
  • Olympia: According to Olympiawa.gov, “[The Comprehensive Plan] covers issues like housing, land use, transportation, parks and open spaces, utilities and public services, and the economy.”  Olympia’s housing trends pose moderate challenges in achieving these goals.

 

Appeal for Buyers

Tacoma continues to attract Pacific Northwestern buyers due to a combination of affordability, a strong job market, and stellar views of nature. This minor metropolitan area is 32 miles southeast of Seattle and 31 miles northeast of Washington’s capitol, Olympia. Additionally, a lot of rich history and artistic influence is incorporated throughout the city alongside a restored urban waterfront. (Wikipedia)

 

Policy Developments

Recently, Tacoma City Council has passed the Home in Tacoma Plan which policies and regulations are said to take effect February 1, 2025. According to cityoftacoma.org, these initiatives include: “zoning and standards package, a landmark decision that paves the way for more diverse, affordable, and sustainable housing options throughout the city.”  These new incentives will likely improve Tacoma’s attractiveness as a city for buyers and visitors alike. 

 

Conclusion

Tacoma’s 2024 housing market presents a picture of minor fluctuations and with the potential for increasing affordability and measured growth. While the frenzied pace of the past couple years has moderated, the market continues to somewhat remain healthy and competitive with “79% of Tacoma homebuyers searched to stay within the Tacoma metropolitan area,” Redfin adds. The city’s relative affordability, combined with its growing job market and environmental intrigue, continues to attract both investors and homebuyers alike.