Overview of Tacoma's Housing Market
The Tacoma housing market remains a vibrant and competitive landscape, characterized by a seller's market where demand continues to outstrip supply. With a median sale price of homes around $440,000 to $454,261, the market has seen a slight year-over-year price increase. However, specific segments show a minor dip, indicating a nuanced market dynamic. The average sale-to-list price ratio hovering around 99.1% to 101.3% suggests a competitive market where homes often sell close to or above the asking price.
Recent Trends and Market Dynamics
In recent years, Tacoma's real estate has been spotlighted for its robust growth, driven by its affordability compared to neighboring Seattle, natural beauty, and economic opportunities. Despite a global pandemic, the market has shown resilience with a steady rise in home values, although at a slower pace compared to the previous boom years. Homes in Tacoma typically sell after about 20 days on the market, indicating a still-active market that benefits sellers more. However, the average time on the market has increased slightly, reflecting a more balanced market environment.
Price Fluctuations Across Different Home Types
An analysis of home prices by bedroom count reveals a mixed bag of trends. While one-bedroom homes have seen a price increase, larger homes with five or more bedrooms experienced the most significant price drops, suggesting a shift in buyer preferences or financial constraints. This variability underscores the importance of understanding market trends and buyer demographics when selling or purchasing a home in Tacoma.
| Home Type | December 2022 Price | December 2023 Price | Change (%) |
|---|---|---|---|
| 1 Bedroom | $322,500 | $336,600 | +4.4% |
| 2 Bedrooms | $392,000 | $375,000 | -4.4% |
| 3 Bedrooms | $465,000 | $449,500 | -3.3% |
| 4 Bedrooms | $540,000 | $528,100 | -2.2% |
| 5+ Bedrooms | $655,700 | $600,000 | -8.5% |
- Home Type: Indicates the category of the home based on the number of bedrooms.
- December 2022 Price: The median sold price of homes in December 2022.
- December 2023 Price: The median sold price of homes in December 2023.
- Change (%): The percentage change in median sold price from December 2022 to December 2023.
This table provides insights into how the prices of homes in Tacoma, across different types based on the number of bedrooms, have fluctuated over the year, highlighting which categories have seen price increases or decreases.
Inventory and Sales Volume
The number of homes for sale has slightly decreased, with a noticeable drop in the inventory of larger homes. This decrease in supply, coupled with a stable demand, maintains the pressure on prices, albeit with some fluctuations. The sales volume has also decreased, indicating a potential cooling off from the frantic pace of previous months. Yet, the market's competitive nature remains, with many homes receiving multiple offers and hot properties selling quickly.
| Month/Year | Number of Homes For Sale | Number of Homes Sold |
|---|---|---|
| November 2023 | 766 | 193 |
| December 2023 | 714 | 186 |
| Change (%) | -6.8% | -3.6% |
- Number of Homes For Sale: Represents the total inventory available in the market for each month.
- Number of Homes Sold: Indicates the total number of home sales transactions completed in each month.
- Change (%): Shows the percentage change in inventory and sales volume from November to December 2023.
This table provides a snapshot of how the Tacoma housing market inventory and sales volume have shifted between November and December 2023, highlighting a slight decrease in both available homes and completed sales.
Buyer's and Seller's Perspectives
From a buyer's perspective, Tacoma offers a relatively more affordable entry point into the Pacific Northwest housing market, with opportunities to find value despite the competitive landscape. For sellers, the market dynamics favor those who price their homes correctly and prepare them well for sale, capitalizing on the high demand for living in Tacoma.
Future Outlook
The Tacoma real estate market is expected to remain dynamic, reflecting broader economic conditions, interest rates, and regional growth trends. While some cooling is anticipated, the fundamental drivers of demand—affordability, location, and quality of life—suggest continued interest in Tacoma as a desirable place to live and invest.
Analysis of Tacoma, WA Demographic Trends
The demographic trends of Tacoma, WA, reflect a city in growth, characterized by increasing diversity and evolving socio-economic factors. Data from multiple sources provide a comprehensive view of Tacoma's population dynamics, income levels, racial composition, and more. Here's an analysis based on the gathered information:
Population Growth
- Trend: Tacoma has experienced consistent population growth over recent years. From 2020 to 2024, the population is projected to have grown from approximately 219,693 to 226,142, marking a steady increase. This growth reflects Tacoma's appeal as a residential area within the Puget Sound region, benefitting from its proximity to major cities like Seattle and Olympia.
- Yearly Changes: The annual growth rate has varied slightly, with a 0.97% increase from 2023 to 2024. This growth rate underscores Tacoma's status as a growing city, albeit at a moderate pace.
| Year | Population | Year-on-Year Change | Growth Rate (%) |
|---|---|---|---|
| 2020 | 219,693 | – | – |
| 2021 | 219,593 | -100 | -0.05 |
| 2022 | 221,776 | +2,183 | +0.99 |
| 2023 | 223,959* | +2,183* | +0.97* |
| 2024 | 226,142* | +2,183* | +0.97* |
- Population: The total number of residents in Tacoma, WA, as recorded or projected for each year.
- Year-on-Year Change: The numerical change in population from the previous year.
- Growth Rate (%): The percentage change in population from the previous year.
Note: Values marked with an asterisk (*) are projected based on recent trends and may not be final. The slight decrease in 2021 followed by a consistent increase highlights Tacoma's continued growth and appeal as a residential area within the Puget Sound region.
Economic Indicators
- Household Income: The average household income in Tacoma stands at around $69,956 to $100,055, indicating an increase in residents' earning power. This growth in income can contribute to a stronger local economy and potentially impact the real estate market by increasing buying power.
- Property Value and Homeownership: The median property value in Tacoma was $347,100 in 2021, with a homeownership rate of 55.6%. These figures highlight the city's real estate market's stability and the residents' investment in homeownership.
Commute and Transportation
- The average commute time for Tacoma residents is about 30.4 minutes, with most people driving alone to work. This reflects the city's infrastructure and the residents' reliance on personal vehicles for commuting.
Racial and Ethnic Composition
- Tacoma is increasingly diverse, with White (Non-Hispanic) residents making up 57% of the population, followed by Black or African American (Non-Hispanic) at 10.3%, Two+ (Non-Hispanic) at 9.15%, and Asian (Non-Hispanic) at 8.6%. This diversity enriches the city's cultural landscape and contributes to a vibrant community.
| Racial or Ethnic Group | Percentage of Total Population |
|---|---|
| White (Non-Hispanic) | 57% |
| Black or African American (Non-Hispanic) | 10.3% |
| Two or More Races (Non-Hispanic) | 9.15% |
| Asian (Non-Hispanic) | 8.6% |
| White (Hispanic) | 4.9% |
| Other | Data not specified in summary |
- White (Non-Hispanic): Represents the majority of the population, indicating a predominant racial group in Tacoma.
- Black or African American (Non-Hispanic): Forms a significant part of the community, reflecting Tacoma's diversity.
- Two or More Races (Non-Hispanic): Indicates the presence of a considerable number of individuals identifying with multiple racial backgrounds.
- Asian (Non-Hispanic): Shows the significant Asian influence in the city's demographic makeup.
- White (Hispanic): Highlights the Hispanic or Latino population identifying as White.
This table showcases the diversity within Tacoma, WA, illustrating a mix of racial and ethnic backgrounds contributing to the city's cultural mosaic.
Language and Citizenship
- A significant majority of Tacoma residents, 94.5%, are U.S. citizens, and most households report speaking only English at home. This indicates a predominantly English-speaking population with a strong sense of national identity.
Educational Attainment
- Tacoma's population has a varied educational background, contributing to the city's skilled workforce and influencing economic opportunities. The distribution of education levels can impact the city's job market and attract businesses looking for a diverse talent pool.
Growth Projections and Urban Development
- The continued population growth and urban development efforts, particularly in downtown revitalization, suggest Tacoma is becoming an increasingly attractive destination for new residents. This growth is supported by employment opportunities provided by major employers like Joint Base Lewis-McChord and the public school districts.
Tacoma, WA, is characterized by steady population growth, increasing diversity, and positive economic indicators. The city's strategic location, coupled with ongoing urban development projects, positions it for continued growth and makes it an appealing option for both residents and investors. As Tacoma evolves, it will be essential to monitor these trends to understand their long-term impact on the city's demographics, economy, and real estate market.
Sources:
- https://www.neilsberg.com
- https://www.redfin.com
- https://worldpopulationreview.com
- https://www.doorloop.com
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