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Olympia: Core of a Competitive Market with Rising Prices

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  Published in House and Home on Monday, November 24th 2025 at 11:16 GMT by KIRO-TV

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Cities with the Most Expensive Homes in the Olympia Metro Area – A Quick Overview

The Olympia metro area, which stretches from the city of Olympia to the surrounding communities of Tumwater, Lacey, Puyallup, and the far‑flung suburbs of Buckley and Des Moines, has been a hotbed for real‑estate investors, families, and retirees looking to plant roots in the Pacific Northwest. A recent KIRO‑7 feature, “Cities with the Most Expensive Homes in the Olympia Metro Area,” dives into the price trends that are shaping the region and gives readers a snapshot of which municipalities are pulling the biggest weight on the local housing market.

1. Olympia – The Core of a Competitive Market

The City of Olympia, the capital of Washington State, sits at the heart of the metro and remains the most coveted address for those seeking a blend of downtown amenities and suburban tranquility. According to the article, the median home price in Olympia has climbed to $365,000 in the past 12 months, up roughly 14 % from the previous year. This surge is driven by a handful of factors:

• Limited Inventory: The article notes that the number of active listings has dipped below 400 homes for sale, a stark contrast to the 700‑plus listings seen a year ago.
• High Demand from Remote Workers: With the pandemic encouraging many to leave densely populated cities, Olympia’s relatively low cost of living compared to Seattle has attracted new residents.
• Quality of Life: Olympia boasts excellent schools, abundant parks, and a vibrant downtown. The city’s “Living in Olympia” section (link provided in the article) highlights the community events and cultural scene that keep buyers coming.

Average price per square foot in Olympia is hovering around $210, higher than the national average of $170 but still modest compared to Seattle’s $310.

2. Tumwater – A Rising Star

Tumwater, a neighboring city just north of Olympia, is often overlooked, yet it’s become the second‑most expensive market in the region. The median home price in Tumwater sits at $410,000, a 20 % jump over the past year. The article attributes this spike to:

• Historic Charm: Tumwater’s well‑preserved historic district and the iconic “Tumwater Falls” draw buyers seeking character homes.
• Proximity to Olympia: Many families prefer Tumwater’s quieter streets but still want easy access to Olympia’s downtown and amenities.
• New Development: Several new subdivisions with larger lots and premium finishes have entered the market.

Per square foot, Tumwater averages $225, making it a hot spot for investors looking to flip or rent out luxury properties.

3. Lacey – Suburban Appeal

While Lacey’s median home price of $310,000 may seem more modest, it remains the most expensive among the city’s suburbs. The article explains that:

• Growing Population: Lacey has seen a 6 % population increase in the last year, largely due to its affordability relative to Olympia and proximity to the Nisqually River.
• Infrastructure Upgrades: Recent improvements to transportation and public amenities have made Lacey a desirable location for families.
• Housing Mix: Lacey offers a mix of single‑family homes, townhouses, and new condos, which broadens its appeal.

Price per square foot in Lacey averages $185, indicating that the market remains approachable for first‑time buyers.

4. Puyallup – A Competitive Submarket

Located further south, Puyallup sits on the edge of the Olympia metro but carries its own unique market dynamics. The median home price in Puyallup is $342,000, with a 12 % year‑over‑year increase. Factors highlighted by the article include:

• Transit Access: Puyallup’s commuter rail station (link to “Puyallup Train Service” in the article) has boosted demand among those working in Seattle.
• Recreational Opportunities: The city’s proximity to Lake Washington and the Olympic National Forest draws outdoor enthusiasts.
• Community Events: The annual Puyallup County Fair and local farmers’ markets give the city a distinct cultural flavor.

The average price per square foot in Puyallup is $200.

5. Other Notable Mentions

The KIRO‑7 article also touches on other cities that, while not topping the list, are worth noting for their price trends:

• Buckley and Des Moines: These smaller towns see median prices around $280,000, but are experiencing rapid growth as people move away from more expensive metropolitan centers.
• Steilacoom and Pomeroy: These coastal towns are still considered “affordable” relative to the region, with median prices in the $200,000–$250,000 range.

Market Outlook & What Buyers Should Know

The article ends with a cautious note: while the Olympia metro area remains one of the most affordable large markets in the Pacific Northwest, the inventory‑to‑demand ratio is a key indicator of future price movements. Experts quoted in the piece say that if the inventory stays low or decreases, prices could continue to rise by 5 %–7 % annually. Conversely, if new construction picks up or a larger supply of homes becomes available, prices may stabilize or even see a slight dip.

For buyers, the article recommends:

• Financing Options: Take advantage of the lower mortgage rates that have been available in the last year.
• Neighborhood Research: Look beyond the median price and investigate school ratings, commute times, and local amenities.
• Professional Guidance: Engage a local realtor familiar with the micro‑markets to get the best deal.

Bottom Line

The KIRO‑7 piece offers a concise yet comprehensive snapshot of the Olympia metro area’s housing landscape. Whether you’re a first‑time homebuyer, a seasoned investor, or a curious observer of the Pacific Northwest real‑estate scene, understanding which cities command the highest home prices—and why—is essential for making informed decisions in a market that is both vibrant and evolving.