Tacoma’s Multifamily Market is Heating Up
Real estate investors looking for Washington investment properties naturally gravitate toward Seattle, the state’s biggest market. And as we’ve discussed previously, Seattle is one of the best cities for multifamily investing, thanks to increasing occupancy rates, average rent amounts, and a 52% spike in multifamily new construction permits in the past year.
But as many residents look to move out of urban areas into smaller markets, real estate investors turn to the nearby city of Tacoma, Washington for opportunities for multifamily investing, fix and flip investing, single-family rental purchases, and new construction.
Here are 3 things you need to know about residential real estate investing in Tacoma, Washington.
1. Inventory Remains Incredibly Low
Housing inventory in Tacoma and Pierce County is about 13 days, according to NMLS (a normal market is six months). That’s incredibly tight – so it’s no wonder why homes spend an average of just 8 days on market before sale, according to Redfin. The speed of sales is 33% faster than the previous year, which means that real estate investors must act fast when they find a good deal.
How do investors respond to this fast-moving Tacoma real estate market? They need real estate investment loans that are reliable – no re-trading rates or falling out at the closing table. Lima One’s professional team and proven processes allow investors to close more loans than any other hard money lender in the country. That efficiency and dependability are what Tacoma real investors need in a tight inventory market.
2. Multifamily is Especially Strong in Tacoma
If you’re considering multifamily real estate investing in Washington, Tacoma real estate is a great option. Occupancy hovers at or above 97%, a rate even higher than Seattle’s 95%. In a normal market, 95% is considered a very strong market. This is a prime reason why rents in Tacoma, WA went up about $200 per month over the past year.
This means that Tacoma investors looking for multifamily bridge loans to reposition Class C multifamily properties to Class B through value-add projects, or to stabilize Class B properties, can do so with confidence because the market will support higher rates with strong occupancy. Lima One’s multifamily loans work well with these classes of properties, and unlike many lenders, we gladly finance properties across the top 350 MSAs, including mid-sized markets such as Tacoma.
3. Real Estate Prices in Tacoma Are Lower Than Seattle
One reason that Tacoma and Pierce County real estate is attractive is that, while the market is just as hot as Seattle’s, prices are lower. The average single-family home price in Tacoma is $515,000, versus $820,000 in Seattle, according to NMLS. This price difference means that investors have more flexibility and can actually make more profit on real estate investment opportunities. This is one big reason that Pierce County offers a stronger rental yield percentage (6.2%) than Seattle’s King County (4.8%).
If you’re looking to invest in the Washington state real estate market, Lima One Capital offers the best real estate investment loans in the USA. Contact us today to get the best financing options for your next real estate investment in Tacoma or any of our lending areas.