More affordable than most neighboring communities, Tacoma's housing market is vibrant and active. In Jan. 2006, the average home in Pierce County sold for $269,000 – roughly $140,000 less than the average home in Seattle/King County. The average rent in Tacoma is about $790 a month for a two-bedroom apartment – a two-bedroom apartment in King County rents for roughly $1500 a month. Affordability combined with a charming variety of neighborhoods and classic craftsman style homes has made Tacoma an extremely desirable place to call home.  

The city provides home repair and rehabilitation loans, homeowner assistance in working with contractors, and down payment assistance loans. It also works with neighborhood development organizations to improve rental and owner-occupied housing, eliminate blight, improve household and neighborhood safety, and stimulate economic development.  

The city also offers a number of housing assistance programs. Down Payment Assistance Program helps those who want to own the home but do not have the money for the down payment and closing costs. Funds are available to provide loans up to $5,000 to assist with the down payment and closing costs needed to buy a home. The loans are for up to 20 years, with no interest and no payments required during that time. In addition, Tacoma offers a tax incentive for multi-family housing. The initiative encourages the development of multi-family housing in Tacoma's fourteen Mixed-Use Centers. To accomplish this goal, Tacoma offers a property tax exemption to eligible property owners. This incentive exempts property taxes for 10 years on the improvements that create additional housing units.  

The Housing Development Section of Tacoma Economic Development Department is responsible for administering the federally funded housing programs, which include the Community Development Block Grant and HOME Investment Partnership. Thanks to the Housing Development Section, the community benefits from increased job opportunities, improved neighborhoods, reduced blight and crime, and an overall sense of neighborhood pride.