State: Washington
The Tacoma real estate market presents a great investment opportunity for real estate investors who want to enter the Puget Sound’s competitive market.
Tacoma is more affordable than Seattle, with slightly less demand. As a result, homebuyers and real estate investors aren’t priced out. In Tacoma, the sale-to-list price ratio is just over 101%, and most homes sell in 34 days. What’s more, the Tacoma-Lakewood MSA is ranked number 48 in the FHFA HPI Top 100 Metro Area Rankings.
Tacoma presents a unique blend of affordability and demand, making it easy for real estate investors to enter Puget Sound’s competitive market.
Tacoma is located south of Seattle in Pierce County, Washington. It borders the Puget Sound and has a lot to offer homebuyers, renters, and real estate investors.
Real estate investors can find nearly every property type in Tacoma’s homes for sale. They include every type of multi-family home as well as single-family properties. Whether you’re looking to invest in a condo, duplex, triplex, fourplex, or single-family home, there’s a Tacoma rental property for you.
The Tacoma area is home to many great suburbs and neighborhoods for real estate investors to consider. They include Bellevue, Lakewood, North End, Seattle, and West End.
A few other neighborhoods worth noting are Federal Way, a suburb northeast of Tacoma and home to the largest water park in the Pacific Northwest; South Tacoma, located north of Lakewood along I-5 and known for its shopping; and Northeast Tacoma, south of Federal Way and home to the Port of Tacoma.
Tacoma is one of Washington State’s more affordable housing markets, with high demand for short-term and long-term rental properties.
According to Realtor, the median listing price in Tacoma is $314 per square foot with a median sale price of $485,000. Zillow’s Home Value Index reports an 18.2% change since last year. The median rent in Tacoma is $1,950 per month.
Tacoma has a stable rental market where renters occupy 42% of households and only a 2.9% vacancy rate. Experts also project that real estate investors can expect a cap rate of 4.2% in the Tacoma area. That’s not a bad return on investment.
Given numbers like this, a Tacoma rental property can potentially increase cash flow for real estate investors and property management companies.
Tacoma is the third most populous city in Washington State. But don’t let that dismay you. It’s only 8,000 people fewer than Spokane, the state’s second-largest city, and growing at a rate of 0.78% each year.
Tacoma’s primary industries are the military, healthcare, finance, aerospace, and trade. Joint Base Lewis-McChord, MultiCare Health System, and the State of Washington are the largest employers. These employers provide stability and fuel the city’s economy. In fact, Tacoma’s unemployment rate is 4.9%, well below the national average.
The Tacoma real estate market offers homebuyers and real estate investors relative affordability, demand, and a strong economy. They combine to create a tremendous investment opportunity.
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