🏗️ $55 Million Affordable Housing Project Breaks Ground in Tacoma

Big progress is happening on Tacoma’s affordable housing front. A major new development, the 35th & Pacific Family Housing Project, is officially underway, marking one of the city’s most significant investments in housing in recent years.

🏢 About the Project

Led by Mercy Housing Northwest, the project will bring 80 new affordable apartment units to 3561 Pacific Avenue, right in the heart of Tacoma’s Eastside.

The five-story building will feature a mix of one-, two-, and three-bedroom units, designed to serve families who are struggling with rising rents and limited housing options. Beyond housing, the plan includes street-level market space for small businesses and community use — an effort to bring life and activity to one of Tacoma’s most heavily traveled corridors.

The development will also include surface parking, sidewalk improvements, and upgrades to the surrounding streets — all aimed at improving access and safety for nearby residents.

💰 A $55 Million Investment in Affordability

With a total project cost of $55 million, this development represents a major commitment to addressing Tacoma’s growing housing crisis. Mercy Housing Northwest, a nonprofit with a long track record of building and managing affordable communities, has received strong support from local and state partners to make the project possible.

The new building aligns with Tacoma’s broader goals for sustainable, transit-accessible housing — placing residents near key routes and services while revitalizing Pacific Avenue.

🚧 Construction Timeline and Local Impact

Construction officially began this fall and will continue throughout 2025, with completion expected sometime in late 2026.

During construction, drivers can expect temporary lane closures and detours along Pacific Avenue as crews work on road and sidewalk improvements. The city is asking for patience from residents and commuters during this phase — with the promise that the finished result will bring lasting benefits to the area.

🌆 Why It Matters

As housing costs continue to climb, Tacoma faces increasing pressure to provide affordable options for families, seniors, and essential workers. Projects like 35th & Pacific are part of a broader effort to ensure that longtime residents aren’t priced out of the communities they helped build.

📍 Location: 3561 Pacific Avenue, Tacoma, WA
🏗️ Developer: Mercy Housing Northwest
🏠 Units: 80 affordable apartments
💰 Investment: $55 million
🕓 Estimated Completion: Late 2026

📨 I’m Aaron Thomas, a local realtor sharing stories about growth, development, and community across the South Sound.
Every Friday, we publish the South Sound Report, featuring new business openings, local updates, and housing news from Tacoma to Olympia.

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