Future of Tacoma market

[Jackson Long]

What do you think the next few years are going to bring to the Tacoma Market? Do you think we're at  the absolute Peak?  And if so do you think we're going to drop or do you think we're going to continue to climb and if so  at the rate we've been climbing or slower?  We are evaluating whether or not to sell a property there.

[Curtis Bidwell]

Several factors involved here:  

• Construction is not keeping up with demand.  
• The economy is strong and growing, with increase in high paying jobs throughout Seattle region. 
• Seattle is pricing moderate to lower income people completely out of the market so they are moving south to Tacoma and now into Olympia markets.  
• The political climate took a huge shift this year with many small landlords exiting the market leaving fewer rentals (look up Senate Bill 5600).  With more legislation being prepped for the next session we will undoubtedly see even fewer independent housing providers (more demand, fewer options, higher rents).  (New laws requires longer notice periods, tougher to evict -with judicial 'discretion' to delay evictions, and an increase in excise tax upon sale of property). 

So, no crystal ball available, but housing in this market is likely to continue climbing along with increased rents.  The pace will rise and fall with the seasons and other factors.  If you have solid, effective, professional management in place I would hang on to what you have unless you have a better plan for the equity.