Tacoma's economy has diversified significantly over the past two decades, shedding its historic dependence on the Port of Tacoma and the paper mills that once defined the city's identity — and its infamous aroma. Today the metro area of roughly 222,758 residents is anchored by Joint Base Lewis-McChord, which employs tens of thousands of military and civilian personnel, and a growing healthcare sector led by MultiCare Health System and CHI Franciscan. The University of Washington Tacoma campus has seeded a modest tech and startup ecosystem in the downtown core, while the port remains one of the busiest container facilities on the West Coast. The median household income of $85,884 reflects a workforce that spans federal employment, logistics, healthcare, and the creative industries that have expanded along the Foss Waterway.
Cost pressures, however, have accelerated dramatically since 2020. The median home value in Tacoma now stands at $479,342, a figure that would have seemed implausible a decade ago when Tacoma was widely regarded as the affordable alternative to Seattle. The Seattle metro's expansion has driven workers south along Interstate 5 and State Route 512, pushing home prices in neighborhoods that were working-class strongholds into territory that challenges first-time buyers. Washington state has no personal income tax, but it levies one of the highest sales tax rates in the nation, and property taxes on a median Tacoma home run $5,000 to $6,500 annually depending on location and improvements.
What makes Tacoma genuinely difficult to leave is a combination of natural beauty and cultural depth that surprises many who dismiss it as Seattle's shadow. Point Defiance Park, one of the largest urban parks in the country, offers old-growth forest, five miles of waterfront trails, and views across the Narrows to the Kitsap Peninsula that rank among the most spectacular in the Pacific Northwest. The Museum of Glass, the Tacoma Art Museum, and the Washington State History Museum give the city a cultural footprint that punches well above its weight for a metro of its size. The climate, while rainy from October through April, spares residents the frost and snow of inland cities, and summer days from June through September are among the most temperate anywhere in the continental United States.
The people leaving Tacoma fall into recognizable patterns. Military families rotate out of Joint Base Lewis-McChord to assignments in Texas, the Southeast, or Germany, taking their household goods with them. Young professionals who bought in the early 2010s when prices were suppressed have cashed out their equity and relocated to cities in the Sun Belt where that capital stretches further. Retirees leaving the Pacific Northwest altogether cite the gray winters and the tax burden on retirement income — Washington's lack of income tax helps, but the high cost of housing and cost of living overall still push many toward Idaho, Arizona, or Nevada. And a growing number of remote workers who settled in Tacoma during the pandemic-era migration are now taking their distributed salaries to lower-cost metros in the Mountain West or the South.