Anderson Island, nestled in Puget Sound just southwest of Tacoma, Washington, is often described as a peaceful, scenic retreat. Accessible only by ferry, the island boasts panoramic water views, dense forests, and a serene rural charm. Yet, despite its natural beauty and proximity to a major metro area, land on Anderson Island remains surprisingly inexpensive—especially compared to the rest of Washington state. So why is land so cheap on Anderson Island?
To understand this, we need to look at a mix of economic, geographic, and historical factors that make real estate here more affordable than one might expect.
Geographic Isolation: The Ferry Factor
Perhaps the most significant factor behind Anderson Island’s low land prices is its limited accessibility. The island is not connected to the mainland by a bridge. Instead, residents and visitors must rely on a ferry that departs from Steilacoom, a small town just south of Tacoma.
While the ferry ride is short—roughly 20 minutes—its schedule and cost can be restrictive for potential homeowners. There are a limited number of trips per day, and each crossing requires planning. For commuters, daily travel can be inconvenient, which deters many from considering full-time residence on the island. Even emergency services and utility repair crews may be delayed due to ferry dependency.
This sense of detachment creates a kind of psychological barrier for buyers, especially those used to the on-demand accessibility of city life. As a result, the demand for land remains lower than in mainland communities, keeping prices down.
Limited Infrastructure and Amenities
Another contributor to Anderson Island’s affordability is its relatively underdeveloped infrastructure. Unlike more suburban parts of Pierce County or the greater Seattle area, Anderson Island lacks major grocery stores, hospitals, entertainment centers, or even gas stations. While there are a few general stores, a café, and recreational areas like golf courses and parks, the amenities are minimal.
For someone seeking convenience, this scarcity of services can be a dealbreaker. For retirees or remote workers who don’t need daily access to urban conveniences, it might be idyllic—but for many buyers, the trade-off isn’t worth the price. Hence, land remains on the market longer and sells for less.
The Boom and Bust of Speculative Investment
To understand the current pricing on Anderson Island, it’s helpful to look at the speculative boom of the 1960s and 1970s. Developers at the time sold lots at low prices, often to out-of-state buyers who never visited the island. These lots were marketed aggressively, especially in California, promising a nature-filled escape and potential for future development.
However, infrastructure did not follow as quickly as investors hoped. Roads were limited, utilities were hard to access, and development was slow. As the novelty wore off and resale proved difficult, many buyers abandoned their investment, leaving lots vacant for decades. Some are still owned by people unaware they even have property on the island.
This surplus of vacant lots—combined with limited demand—continues to drive land prices down. Even today, many lots are sold at auctions for back taxes or are listed well below their perceived value in more connected locations.
Seasonal and Recreational Reputation
Although some residents live on Anderson Island year-round, it still has the reputation of being a “vacation-only” destination. Many of the homes are used seasonally or as weekend getaways. The island’s identity as a recreational haven discourages full-time settlement, which limits the buyer pool to retirees, second-home seekers, or investors hoping for long-term appreciation.
Because the land is not seen as ideal for building permanent residences, it struggles to command higher prices. This further limits market activity, keeping costs low across the board.
Environmental and Septic Constraints
Developing on Anderson Island isn’t as simple as purchasing a plot and building a home. The island’s topography, soil type, and environmental regulations create challenges for construction.
Septic systems are required for most homes since the island lacks a centralized sewer system. Not all lots are suitable for septic approval due to soil drainage limitations. This adds an extra hurdle (and cost) for buyers wanting to build, which can discourage investment.
Moreover, portions of the island are designated as wetlands or critical habitat areas. These designations can restrict development entirely or require extensive permitting processes, which again drives demand—and prices—down.
Lack of Publicity and Market Awareness
Despite its natural appeal and location within commuting distance of Tacoma, Anderson Island simply doesn’t enjoy the publicity or media spotlight that other Pacific Northwest destinations do. Places like Bainbridge Island, Vashon Island, or Whidbey Island are far more popular, often featured in travel magazines or lifestyle blogs.
In contrast, Anderson Island operates quietly. It’s known primarily to locals and niche communities interested in remote living. Without widespread attention or high-profile development projects, prices remain grounded.
Prospective Upside?
That said, there’s an argument to be made that Anderson Island is a hidden gem. As remote work becomes more common, more people are willing to live further from urban centers. For buyers who can live or work from anywhere, the peacefulness and affordability of Anderson Island can be incredibly appealing.
Additionally, as the Puget Sound region continues to experience population growth, the low cost of land on Anderson Island might not last forever. Infrastructure projects, increased ferry services, or new development plans could increase accessibility and push prices upward.
Real Estate Takeaway: Who Should Buy on Anderson Island?
Buyers looking for serenity, space, and affordability without the pressure of urban living might find Anderson Island a perfect fit. But it’s not ideal for those seeking instant resale profits or expecting big city convenience.
That’s why many buyers are retirees, long-term investors, or those drawn to off-grid or semi-rural lifestyles. For them, the lack of infrastructure is part of the charm. Still, those considering land purchases should do their homework: check zoning restrictions, review septic feasibility, and factor in ferry accessibility before committing.
Final Thoughts
To summarize, the land on Anderson Island remains cheap due to its limited accessibility, minimal infrastructure, historic overdevelopment, and ongoing perception as a part-time destination. While it offers natural beauty and tranquility, it also requires a lifestyle adjustment not all buyers are willing to make.
It’s not just about price—it’s about the balance of convenience, lifestyle, and long-term vision. For the right kind of buyer, the affordability of Anderson Island is a rare opportunity. But for most, the drawbacks outweigh the benefits, keeping demand modest and prices grounded.
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