Historic Homes in Tacoma: A Buying Guide

Published:
October 24, 2024
Last updated:
October 24, 2024
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In addition to being one of the most affordable real estate markets in the Seattle metro area, the city of Tacoma also contains a large number of historic homes. In fact, the city has a total of nine officially designated historic districts.

This gives Tacoma home buyers a unique opportunity to own not just a property, but a reflection of the past. Read on to find out more about buying historic homes in Tacoma.

The City of Tacoma, Washington: an Overview

The city of Tacoma is located in Pierce County, Washington, on Puget Sound. It’s the second-largest city in the state, after Seattle. Tacoma is known for its beautiful natural surroundings, including Mount Rainier National Park and the Olympic Mountains.

Founded in the 1870s, Tacoma eventually became an important stop for the transcontinental railroad, earning it the nickname “City of Destiny.” The city developed as a port and industrial hub, exporting lumber and other goods. You can still see evidence of this history today.

In recent decades, Tacoma has undergone significant revitalization, especially in its downtown area. Downtown Tacoma offers a mix of historic preservation and new development.

As of 2024, the city’s population is around 221,000 residents, and growing.

The Nine Tacoma Historic Districts

According to city officials, Tacoma, Washington is home to nine historic districts. These nine districts showcase a variety of architectural styles, from grand Victorian mansions to modest Craftsman bungalows.

Home buyers in Tacoma can find historic homes all over the city. But they’re mostly concentrated within the nine officially designated historic districts. So if you’re interested in purchasing a piece of the past, you’ll want to check out the following locations:

1. Buckley’s Addition Historic District

This district represents a typical early 20th-century streetcar suburb and includes a variety of architectural styles. The district was named for James M. Buckley, the Assistant General Manager of the Northern Pacific Railroad.

2. College Park Historic District

This district is located near the University of Puget Sound and features a mix of homes from the late 19th and early 20th centuries. The district was listed on the National Register of Historic Places in 2017.

3. North Slope Historic District

One of the largest historic districts in the country, North Slope is known for its beautiful Victorian, Craftsman, Colonial Revival, and Foursquare houses. It was listed on the Tacoma Register in 1994 and on the Washington State and National Registers of Historic Places in 2003.

4. Old City Hall Historic District

This district boasts impressive Tacoma architecture, including the historic Old City Hall building, the Northern Pacific Headquarters, and the Elks Temple. It was once home to “Whiskey Row,” a lively entertainment district that catered to dock workers and politicians.

5. Salmon Beach Historic District

Offering a glimpse into the waterfront lifestyle of the early 20th century, Salmon Beach features cabin-style homes built on stilts. This Tacoma historic district is listed on the Washington Heritage Register. Some of the properties, including Cabin #97, are in close to original condition.

6. South J Street Historic District

This district is composed of eight late-Victorian row houses, known for their similar appearance and historic significance. The houses were erected in 1889 and 1890 and display a variety of exterior cladding materials and decoration.

7. Stadium/Seminary Historic District

This high-style residential district features stunning homes with views of the Puget Sound. The district was listed on the National Register of Historic Places in 1977.

8. Union Depot/Warehouse District

Characterized by its rugged brick warehouses and factories, this district was once a bustling hub for goods arriving by railway. The Union Station, a stunning landmark, has been preserved and adapted for use as a Federal Courthouse.

9. Wedge Neighborhood Historic District

This district, officially created in 2011, represents a typical pre-World War II middle-class Tacoma neighborhood. It features a diverse mix of homes and residents, reflecting the area’s multicultural history. The Wedge Neighborhood Conservation District was created to protect the historic character of the area from development pressures.

Architectural Styles Available to Home Buyers

Tacoma home buyers seeking a historic property to purchase have a variety of architectural styles to choose from. Here are some of the most common architectural styles in the area:

  • Colonial Revival: Inspired by colonial American architecture, Colonial Revival homes often feature symmetrical facades, columns, and gabled roofs.
  • Craftsman: These homes typically have low-pitched roofs, exposed rafters, and built-in bookcases. The Craftsman style was popular in the early 20th century and remains so today.
  • Foursquare: These homes have a simple, boxy shape with a prominent porch and a central chimney. They get their name from the layout. Most have four equal-sized rooms on each level, arranged in a square.
  • Queen Anne: A complex style with asymmetrical facades, towers, and decorative details. You’ll find a number of Queen Anne homes located throughout the city of Tacoma.
  • Tudor Revival: Inspired by medieval English architecture, Tudor Revival homes often feature half-timbering, steeply pitched roofs, and large fireplaces.
  • Victorian: Known for its ornate details, steep roofs, and towers, Victorian architecture was all the rage in the late 19th century. Today, Victorian homes in Tacoma are still highly sought after.

Key Considerations When Buying a Historic Home

Buying a historic home in Tacoma is different from buying newer construction. It requires additional research and planning. Here are some things to consider and do before buying a historic property in Tacoma, Washington.

  • Building Materials: Older homes may use materials like plaster, lead paint, and asbestos, which can require special maintenance or removal.
  • Energy Efficiency: Historic homes may not be as energy-efficient as newer ones, leading to higher utility bills.
  • Floor Plans: Older homes often have unique floor plans, which may not be as open-concept as newer ones.
  • Character: Historic homes often have unique architectural details like moldings, stained glass, and original hardware.
  • Inspections: Consider hiring a home inspector who specializes in historic homes.
  • Maintenance: Be prepared to spend more on maintenance and repairs than you would spend with a newer home.
  • Insurance: Some insurance companies offer specialized policies for historic homes.

One of Seattle’s Most Affordable Markets

Tacoma offers some of the lowest prices for historic homes of any city in the Seattle metro area. Combine this with the plethora of properties available, and you have a historic home buyer’s paradise.

As of fall 2024, the median house price within the city of Tacoma was around $482,000, according to Zillow. During that same time, the median price for the broader Seattle metro area was around $735,000.

In the city of Seattle, the median home value currently runs north of $800,000. It’s even higher in Eastside housing markets like Bellevue, Redmond, and Sammamish.

By this yardstick, the Tacoma real estate market is one of the only places in the Seattle area where a home buyer could purchase a well-maintained historic home for under $500,000. You’ll have a better chance of finding affordable homes in Tacoma than in other nearby cities.

Potential Tax Incentives of Buying a Historic Home in Tacoma

Buying a historic home can come with several potential tax incentives, which can make the investment more attractive. Here are some common incentives:

  • Federal Historic Preservation Tax Incentive Program: Offers a 20% tax credit for the rehabilitation of historic properties that are income-producing.
  • Special Tax Valuation Program: In Washington State, the Special Tax Valuation program offers a valuable tax incentive for owners of historic properties. This program allows for the revised assessment of a historic property’s value, subtracting approved rehabilitation costs from the assessed value for up to 10 years. This means that property taxes are based on the property’s value before the improvements, making it financially easier to restore and preserve historic buildings.
  • Grants and Low-Interest Loans: Various grants and low-interest loan programs are available to help with the costs of renovation and preservation.
  • Tax Deductions for Donations: Donations of preservation easements can sometimes be deducted from your taxes.

These incentives are designed to encourage the preservation of historic properties and can provide significant financial benefits to homeowners.

Financing Options For Buying and Renovating Historic Homes

One popular financing option for home buyers interested in purchasing and renovating historic homes is the FHA 203(k) loan. This government-insured mortgage allows you to finance the purchase and renovation of a property with one loan. Here are some key points about the FHA 203(k) loan:

  • Eligibility: Available to homebuyers with a minimum credit score of 580 and a down payment of 3.5%.
  • Loan Amount: The loan amount is based on the projected value of the home after repairs.
  • Rehabilitation Work: The loan can cover a wide range of repairs and improvements, including structural repairs, modernization, and energy efficiency upgrades.

This loan is particularly beneficial for buyers looking to purchase older or historic homes that need significant repairs. It simplifies the financing process by combining the purchase and renovation costs into one loan.

Need Financing?

Are you looking at historic homes in Tacoma, WA and need financing to fund your purchase? If so, we can help. Sammamish Mortgage has been helping borrowers in the Pacific Northwest navigate all the mortgage options available since 1992, and we can help you too. Get an instant rate quote, and reach out to use today to get the mortgage process started!

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