The Real Estate Market in Tacoma, Washington is currently facing two major challenges: affordability and lack of home supply. These two factors are driving the market in Tacoma and are the cause for the ongoing competition for (most specifically!) single family homes with attached or detached dwelling(s) and multi-family units.
Tacoma Housing Affordability
One of the largest drivers of the real estate market in Tacoma is affordability. Despite being one of the more affordable cities in the Puget Sound region, home prices in Tacoma are still high for majority of residents. Making it difficult to find a home within their comfortable budget. This has created high demand for more affordable housing options and put pressure on the supply of homes in the area.
Here is a home that I recently sold that received multiple offers within the first 5 days we listed. We sold this Single level Southeast Tacoma Home for $11,000 more than the listed price. The affordability and turn key condition, made this home highly desired.
Because of the growing need for affordable housing, we are seeing multi-family units and single family homes with additional dwelling units (ADU’s) receive multiple offers and sell for more than the property was listed for. To offset the growing unaffordability of the area, Home Buyers are choosing to invest in a home that will provide them passive income, by renting out the additional dwelling. OR consolidate households and live with multiple generations.
Supply of Homes Tacoma
Another major challenge facing the real estate market in Tacoma is the lack of home supply. In recent years, there has been a shortage of new homes being built, which has only added to the pressure on the existing housing stock. There are several new large apartments being built in downtown Tacoma, around the University of Washington, Tacoma campus. But the availability of these rentals will not improve the housing market. It will alleviate the pressure we see on available rentals. It will not provide balance in the housing market.
Additional Dwelling Units (ADU’s)
In 2020 the City of Tacoma re-zoned much of the city to allow for more dense housing. This has, without question, helped our housing shortage AND made Tacoma, The City of Destiny for many more residents. When given the choice between buying a home in Seattle and Tacoma, home buyers often choose Tacoma because your dollar gets you so much further. The ability to build an ADU on your property, provides homeowners an outlet to build equity in their home. The potential revenue stream from an ADU, alleviates the fear of future displaced. Click here, if you’d like to learn more about ADU’s in Tacoma, WA.
This house below (Cabin in the City!) did not have an ADU, but the oversize 7,100SF lot and superb alley access, with an already poured concrete slab for a garage/ADU made it easy for the buyer to visualize the building of such structure.
Segments of the Real Estate Market in Tacoma
The Real Estate Market throughout the city is extremely segmented. Condominiums, luxury housing and land, overall are taking much longer to sell. However, we are still seeing some homes go under contract within the first five to seven days of being listed. (more about current housing trends in Tacoma, here!) These homes are the exception rather than the norm. If you are a Home Buyer or Seller looking to enter the market, hire a professional that is willing to dig into your wants and needs and understands the nuances of our Real Estate Market! With great preparation, your home might sell in the first 10 days with multiple offers.
Click here, for more statistics on the current Real Estate Market in Tacoma.
Summary
In conclusion, the Real Estate Market in Tacoma, Washington is facing challenges due to affordability and lack of home supply. Despite these challenges, there are still areas of the market that are thriving, particularly with multi-family units and homes with ADUs.
If you are looking to buy or sell, give me a call or send a message. I look forward to the opportunity to be your advocate and achieve your housing goals.
