Tacoma Home Prices: $520K, Down 1% — 11 ZIPs Analyzed (2026)
$520,257. That’s the median home price in Tacoma, Washington as of February 2026. Values are down 1.0% from a year ago, leaving the city slightly cheaper than it was last spring but still well above pre-pandemic levels.
Quick answer: The average home price in Tacoma, WA is $520,257 as of February 2026, down 1% year over year according to Zillow.
Current Home Prices in Tacoma
The typical Tacoma home now sits a few thousand dollars below where it was 12 months ago. The drop is mild — barely a percentage point — but it breaks the upward streak the city posted through 2023 and most of 2024.
| Metric | Value |
|---|---|
| Median Home Price | $520,257 |
| Year-over-Year Change | −1.0% |
| Lowest ZIP Median | $407,522 (98409) |
| Highest ZIP Median | $690,188 (98403) |
| ZIP Codes Analyzed | 11 |
| Data Through | February 2026 |
The spread between Tacoma’s cheapest and priciest ZIPs is roughly $283,000. That gap matters if you’re shopping. A buyer who can flex on neighborhood can move the entire purchase price by 30% without leaving city limits.
Tacoma also sits inside the larger Seattle-Tacoma-Bellevue metro, which means values here tend to track Seattle’s direction — usually at a discount. The current $520K median is roughly half of what comparable homes cost across Puget Sound.
You’re buying into a market that has cooled, not crashed. Sellers are no longer setting prices and watching multiple offers stack up the same weekend. Buyers have a little more breathing room than they did in 2022 or 2023, though inventory remains tight by historical standards.
Tacoma Home Prices by Neighborhood
Tacoma’s 11 ZIP codes split cleanly into two tiers. The top half clusters above $570K. The bottom half sits in the low-$400Ks.
| ZIP | Median Home Value | Median Rent |
|---|---|---|
| 98403 | $690,188 | $1,605 |
| 98422 | $669,696 | $2,238 |
| 98407 | $620,356 | $1,973 |
| 98406 | $604,783 | $1,869 |
| 98465 | $572,978 | $1,750 |
| 98405 | $456,206 | $1,684 |
| 98404 | $435,813 | $1,965 |
| 98408 | $429,853 | $1,689 |
| 98402 | $426,546 | $1,762 |
| 98418 | $408,884 | $1,908 |
| 98409 | $407,522 | $1,694 |
Most Expensive
98403 ($690,188) carries Tacoma’s highest median, about 33% above the city number. Rents here are oddly low at $1,605 — a sign that owner-occupancy dominates and rentals are scarce.
98422 ($669,696) ranks second on price and first on rent at $2,238 per month. The high rent suggests stronger investor demand and more rental inventory than 98403.
98407 ($620,356) rounds out the top three. Both prices and rents land in the upper bracket, with rents averaging $1,973.
Most Affordable
98409 ($407,522) is the cheapest ZIP, sitting 22% below the city median. Rent is also among the lowest at $1,694.
98418 ($408,884) is nearly identical on price but commands a higher rent at $1,908 — meaning yields here favor landlords.
98402 ($426,546) covers downtown Tacoma. The price is below the city average and rent is moderate at $1,762.
Rent vs Buy in Tacoma
Renting wins on monthly cash flow. The average rent across Tacoma’s ZIPs is about $1,830 per month, with the cheapest ZIP at $1,605 and the priciest at $2,238.
A mortgage on a median Tacoma home tells a different story. Run the numbers with 20% down ($104,000) on a $520,257 home at a 7% rate over 30 years and you get principal-and-interest of about $2,770 per month. Add Washington property taxes (roughly 0.93% of value annually) and homeowner’s insurance, and your true monthly cost lands near $3,290.
| Cost Type | Monthly |
|---|---|
| Average Rent (citywide) | ~$1,830 |
| Mortgage P&I (median home, 20% down, 7%) | ~$2,770 |
| Mortgage + Tax + Insurance | ~$3,290 |
| Monthly Premium to Buy | ~$1,460 |
Buying costs about $1,460 more per month than renting at today’s rates. That’s the rent-vs-buy gap you have to weigh against equity and tax benefits.
The math flips faster in lower-priced ZIPs. In 98409, where a typical home runs $407,522 and rent averages $1,694, the buy premium narrows but doesn’t disappear. Buying still costs hundreds more per month than renting at current rates.
If you’re staying less than five years, rent. If you’re staying ten or more and rates eventually drop enough to refinance, buying starts to pencil out.
Population Growth and Migration
Tacoma is growing, but slower than Seattle. The city added about 8,400 residents between 2020 and 2024, a 3.8% gain.
| Year | Population |
|---|---|
| 2020 | 219,756 |
| 2021 | 219,938 |
| 2022 | 220,993 |
| 2023 | 224,886 |
| 2024 | 228,202 |
Growth was almost flat in 2021, then accelerated through 2022, 2023, and 2024. The 2023-to-2024 gain alone added more than 3,300 people — roughly the same as the previous three years combined.
How does Tacoma stack up against other Washington cities?
| City | 2024 Population | 4-Year Growth |
|---|---|---|
| Seattle | 780,995 | +5.5% |
| Spokane Valley | 108,267 | +4.5% |
| Vancouver | 198,992 | +4.0% |
| Tacoma | 228,202 | +3.8% |
| Everett | 113,011 | +1.9% |
| Bellevue | 154,377 | +1.7% |
Tacoma sits in the middle of the pack — faster than Bellevue or Everett, slower than Seattle and Vancouver. For housing, this matters because steady population growth supports demand even when prices flatten. A city that adds 3,300 people a year needs additional housing units regardless of where mortgage rates sit.
Tacoma Housing Market Trends
Prices peaked in March 2025 and have wobbled ever since.
| Month | Median |
|---|---|
| Feb 2026 | $520,257 |
| Jan 2026 | $519,788 |
| Dec 2025 | $518,738 |
| Nov 2025 | $517,447 |
| Oct 2025 | $515,977 |
| Sep 2025 | $514,591 |
| Aug 2025 | $514,204 |
| Jul 2025 | $514,938 |
| Jun 2025 | $517,024 |
| May 2025 | $519,692 |
| Apr 2025 | $522,986 |
| Mar 2025 | $525,393 |
The 12-month story runs in two acts. From March through August 2025, prices fell about $11,000 — roughly 2.1%. Then the slide reversed. Since August, the median has climbed every single month, recovering about $6,000.
Translation: the bottom appears to have arrived in late summer 2025, and Tacoma has been quietly recovering for six straight months. The year-over-year number still reads negative because last spring’s peak was higher, but recent monthly direction has flipped positive.
Is Tacoma a Good Place to Buy in 2026?
The conditions favor patient buyers. You’re walking into a market where:
- Year-over-year prices are down (mild edge to buyers)
- Recent monthly trend is up (sellers regaining ground)
- Population is growing (long-term demand intact)
- Rent is well below mortgage costs (renting is cheaper short-term)
That mix makes Tacoma neither a screaming buy nor a city to avoid. It’s transitional. If you find a home in the lower ZIPs (98409, 98418, 98402) under $430K, you’re getting in below the city median in a metro that has historically appreciated. If you’re stretching for a top-tier ZIP at $670K+, you’re paying near the local peak.
The city isn’t oversupplied, but it’s no longer in a frenzy either. Sellers who priced for 2022 conditions are still sitting. Sellers who price to current data are moving homes.
Tacoma Housing Market Outlook for 2026-2027
The six-month upward run in prices since August 2025 is the cleanest signal in the data. Each month from September through February has posted a higher median than the one before it. If the current pace continues, Tacoma could cross $525K — its prior peak — sometime in mid-2026.
The 3-month trend (Dec to Feb) shows median values rising about $1,500 to $2,000 per month. That’s slower than the 2022 boom but a clear shift from the summer 2025 dip.
The risk: if mortgage rates spike again, that recovery stalls. The opportunity: if rates drift down, the same demand that pushed prices up six months in a row could move faster. Watch the spring 2026 data closely — that’s typically when housing markets show their hand for the year.
Similar Markets in WA
Tacoma sits between cheap Eastern Washington and expensive Puget Sound, so the comparison set runs wide.
- Seattle — the metro anchor, but at roughly double Tacoma’s median price.
- Everett — north of Seattle and similar in profile to Tacoma but with slower population growth.
- Vancouver — across the state on the Oregon border, growing faster than Tacoma.
- Olympia — the state capital just south of Tacoma, often considered as a quieter alternative.
- Bellingham — northern Washington with a smaller-city feel.
Frequently Asked Questions
What is the average home price in Tacoma?
The average home price in Tacoma is $520,257 as of February 2026. That figure reflects the Zillow Home Value Index across 11 ZIP codes inside the city, ranging from $407,522 in 98409 to $690,188 in 98403.
Are home prices going up or down in Tacoma?
Year over year, Tacoma home prices are down 1.0%. But the recent trend has reversed: prices bottomed in August 2025 at $514,204 and have risen every month since, gaining roughly $6,000 over the past six months.
Is it cheaper to rent or buy in Tacoma?
Renting is cheaper. Average rent runs about $1,830 per month citywide. A mortgage on a median Tacoma home with 20% down at a 7% rate works out to roughly $3,290 monthly once you include taxes and insurance — about $1,460 more than renting.
What is the most affordable neighborhood in Tacoma?
ZIP 98409 is the most affordable Tacoma neighborhood, with a median home value of $407,522. That’s about 22% below the citywide median. Rent in 98409 is also among the city’s lowest at $1,694 per month.
Methodology
Home values are based on the Zillow Home Value Index (ZHVI), a smoothed measure of typical home values in the 35th to 65th percentile range. Rent estimates use the Zillow Observed Rent Index (ZORI). Population figures come from the U.S. Census Bureau Population Estimates Program (2020-2024 vintage). All datasets are publicly available. Housing data updated 2026-02-28.