Looking for the most affordable neighborhoods in Tacoma as of 2023? You’re in the right place. Every year we track the sales in neighborhoods across Tacoma and Pierce County to bring you info on how much homes are selling for, how long they’re taking to sell, and what the trends are looking like. While prices in general are flattening out in Tacoma after the incredible appreciation we saw from 2019-2022, in most neighborhoods they’re holding steady or increasing. To understand why homes in Tacoma are in such demand, check out our blog post, “Tacoma isn’t affordable anymore. This is Why. In spite of increasing interest rates, Tacomans who are renting and looking to become homeowners still have opportunities in Tacoma. To learn more you can check out our post, “Creative ways to buy in Tacoma if you think you’re priced out.”
Which neighborhoods in Tacoma are the most affordable?
The most affordable neighborhoods in Tacoma in 2023 are Downtown Tacoma, Hillside/UWT, McKinley Hill, the Lincoln District, & South Tacoma. For context, the median home price for a 3 bedroom home in Pierce County in 2023 is $515,000. That’s 38% less than the median home price in King County, $836,000.
Median Sales Price: $319,995
Price Change since 2022: -2.19%
The most affordable neighborhoods in Tacoma don’t change much year to year. Once again, the most affordable neighborhood is Downtown Tacoma. The main reason for this is that the majority of homes available in Downtown Tacoma are condos which tend to have a lower sales price than single family homes. The number of days a condo is on the market before it sells is more or less the same (a little over two weeks!) but the total volume of sales fell about 38% from 45 sales in 2021 to 28 sales in 2022.
Median Sales Price: $380,975
Price Change since 2022: -3.68%
Hillside / UWT is what we call the neighborhood that is located between Downtown Tacoma and Hilltop just above the University of Washington, Tacoma. This neighborhood is made up primarily of single family homes and townhouses.The median sales price fell slightly from 2022 to 2023, and the number of days for a home to get an offer doubled from about a week to a little over two weeks. That said, the demand for homes in this neighborhood is high. It’s affordable, a convenient location, and still has the most townhouses of any neighborhood in Tacoma.
Median Sales Price: $412,000
Price Change since 2022: +5.34%
The McKinley Hill neighborhood of Tacoma’s most popular. In addition to being one of the most affordable neighborhoods in Tacoma (and Pierce County!) to buy a single family home, the location is incredibly convenient. Its location is just up the hill from Tacoma Dome Station and Downtown Tacoma. The median sales price increased a little over 5% from 2022 to 2023 coming in in the low 400’s. The time a home spends on the market on McKinley hill increased from 13 days to 17 days, so still selling fairly quickly.
Median Sales Price: $415,000
Price Change since 2022: +1.98%
The Lincoln District is another of the most affordable neighborhoods in Tacoma for buying a single family home. Homes here are selling for slightly more than they did last year, but the time on market has increased from about 10 days to 15 days. Like McKinley Hill, Lincoln’s location is excellent for people commuting to Downtown Tacoma, North to Seattle, or south to JBLM.
Median Sales Price: $418,500
Price Change since 2022: +6.81
South Tacoma started off 2022 at a median sales price of $390,000 and then increased to $420,000 in June 2022. Basically, as we enter 2023, South Tacoma is bumping along right at about $420,000. So prices here have technically increased almost 7% but as for now, they’re holding steady. The number of days a house spends on the market before the seller accepts an offer has increased from 10 days to 16 days.
Are home prices in Tacoma going up or down?
As of January 2023 home prices are trending down in many neighborhoods, they have been since June of 2022. While demand for housing in Tacoma is still very strong, the increase in interest rates over the past year have made it so buyers qualify for less in general, which has impacted demand. As rates flatten out and decrease agents and economists expect the sales (and sales prices) to increase again.
In this chart from the NWMLS (which tracks all the data for home sales in the region) you can see how home sales prices in Tacoma went up and down over the last 12 months:
Want to buy a house in Tacoma in 2023? Here are some more resources:
Marguerite Martin, Founder of MoveToTacoma.com is a real estate agent in Tacoma, WA . As a real estate “Matchmaker,” she specializes in connecting real estate clients to the perfect agent in Tacoma and across the country. Learn more at Meet Your Guide.