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.

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

George / Adobe Stock

 

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 slow stability and measured growth. While the frenzied pace of previous years has moderated, the market remains healthy and competitive. The city’s relative affordability, combined with its strong job market and quality of life advantages, continues to attract both investors and homebuyers looking for value in the Puget Sound region.