Picture a tidy one-bedroom apartment in Federal Way, Washington — modern finishes, a balcony overlooking evergreen trees, and a community fitness center just downstairs. For many renters, this 700-square-foot space is an ideal starter home, offering proximity to jobs and amenities at a manageable monthly cost. But how does the price tag compare to buying a house in this growing Seattle suburb? Let’s explore the cost of living in an apartment vs house in Federal Way and what you can expect to pay for each.
The Housing Market in Federal Way Today
Federal Way, located just 25 miles south of Seattle, offers a appealing mix of urban convenience and natural beauty. The city’s housing market has seen steady growth in recent years, driven by its strong job market, highly-rated schools, and relative affordability compared to Seattle proper. While inventory has tightened somewhat, a range of options are still available for both renters and buyers.
One trend of note is the rise of newer apartment complexes in downtown Federal Way and along transit corridors. These developments often feature contemporary amenities like co-working spaces, dog runs, and green design elements. For those seeking a maintenance-free lifestyle with easy access to dining and retail, these apartments have strong appeal. Simultaneously, many established neighborhoods continue to offer well-maintained starter homes with room to grow.
Renting in Federal Way: What’s Typical?
For a mid-range one-bedroom apartment in Federal Way, renters can expect to pay around $1,500 per month as of 2023. Upgrading to a two-bedroom unit bumps the average to about $1,900. These prices typically include core amenities like parking, on-site laundry, and basic utilities.
Young professionals are a common demographic in Federal Way’s rental scene, drawn by the city’s employment opportunities and recreational offerings. Apartments near The Commons mall and the Transit Center tend to see the highest demand. While rent has risen by roughly 5% over the past year, areas like West Campus still provide relative affordability.
It’s worth noting that Federal Way does have some income-restricted apartments and senior living communities. These properties usually have wait lists, but can be a budget-friendly option for those who qualify. Rental assistance programs are also available through local organizations.
Owning a Home in Federal Way
As of 2023, the median home price in Federal Way is approximately $525,000. For a buyer putting 10% down on a 30-year mortgage at 6.5% APR, this equates to a monthly payment around $2,995. However, that base cost is only part of the equation.
Homeowners in Federal Way also need to budget for property taxes, which average 1.1% of assessed value annually. For a median-priced property, that’s close to $480 per month. Home insurance adds another $80 or so. If the home is part of a community with a homeowners’ association (HOA), dues could range from $200-500 based on the scale of amenities. In total, the monthly cost of ownership often exceeds $3,500.
While those figures might sound daunting, many Federal Way homeowners find the stability and long-term investment potential worthwhile. Programs like FHA loans and down payment assistance can also make the leap to ownership more attainable for those with solid credit and steady income.
Renters vs. Homeowners: Who Lives Where?
Federal Way’s overall homeownership rate hovers around 60%, slightly higher than the national average. Not surprisingly, age and income are two key predictors of who rents versus owns.
For young adults under 35, renting is the norm — often in apartment communities or shared houses. As residents enter their prime earning years and start families, the shift toward homeownership begins. Over 70% of those 45 and older own their homes, with the highest concentrations in neighborhoods like Lakeland and Dash Point.
Still, financial barriers do impact ownership rates. Even with solid employment, saving for a down payment and qualifying for a mortgage can be challenging. Cultural factors and family structure also play a role. While renting is common among younger individuals, a significant portion of older residents also rent due to circumstance or preference.
| Expense | Apartment (1BR) | House (Median Price) |
|---|---|---|
| Rent/Mortgage | $1,500 | $2,995 |
| Property Tax | – | $480 |
| Utilities | $125 | $295 |
| Insurance | $15 | $80 |
| HOA Dues | – | $350 |
| Total | $1,640 | $4,200 |
Estimates reflect mid-range properties and average usage.
What’s Driving Costs Up or Down?
Several factors influence the cost of housing in Federal Way. On the demand side, the city’s growing population and thriving job market continually put pressure on prices. Major employers like Amazon, Kaiser Permanente, and the Federal Way School District draw a range of skilled workers to the area. Many are willing to pay a premium for housing that offers a manageable commute.
In terms of supply, Federal Way has seen a mix of trends. Apartment construction has been fairly robust in recent years, helping to meet the need for rental housing. However, development of entry-level single-family homes has lagged somewhat, contributing to rising prices. Zoning changes and construction costs also impact the pipeline of new housing.
Policy decisions play a role as well. Just this year, Federal Way enacted a 1% tax on the construction of new multifamily housing units, which some worry could discourage apartment development. On the flip side, efforts to expand public transit and improve infrastructure have made the city more attractive overall. As in many markets, it’s a constant balance of economic forces.
FAQs About Housing in Federal Way
Is Federal Way affordable to live in?
Compared to Seattle, Federal Way offers relative affordability. However, housing costs have risen faster than wages in recent years, so budgeting is key. Explore our guide on how much it costs to live in Federal Way each month to gauge typical expenses.
Why are housing prices changing?
Job growth, migration patterns, and development trends all impact the supply and demand of housing. While some fluctuation is normal, Federal Way has seen above-average appreciation due to its strong economy and quality of life. Our cost of living overview dives deeper into the factors at play.
How does Federal Way compare to nearby cities?
For housing costs, Federal Way tends to be more affordable than Bellevue or Tacoma, but pricier than outer suburbs like Auburn or Puyallup. Amenities, commute times, and school districts also vary. Research neighboring communities to find the best fit for your needs and budget.
Making Smart Housing Decisions in Federal Way
Whether renting or buying, housing is a significant expense. In Federal Way, the median rent now consumes over 30% of the typical household income, while mortgage costs often exceed 40%. Determining how much you can comfortably afford is an essential first step.
For renters, budgeting for application fees, deposits, and moving costs is also key. Comparing lease terms and community amenities can help you find the right value. If buying, factor in not just the sticker price, but ongoing costs like maintenance, repairs, and potential HOA dues.
Lastly, think about your long-term goals. Are you looking to put down roots or maintain flexibility? Are space and privacy top priorities, or do you prefer a more connected, convenient lifestyle? While finances are central to housing decisions, also consider how your home will shape your daily quality of life in Federal Way.