Why Is Land So Cheap On Anderson Island (WA)?

A friend of mine from high school called me the other day and said he was looking to buy some land to build a house. He said he’d scored a deal on a home kit from Home Depot (which I didn’t even know was a thing—but apparently it is!) and now needed a place to build it.

He said he wanted to live near Seattle so he and his wife could get into the city when they felt like it, but far enough away to avoid the crime, noise, and other things that have made people start looking elsewhere. I said, “I’ve lived here for years—I get it completely!”

He’s a remote-working programmer, so being on an island wouldn’t be an issue since he never needs to commute. After some research, he discovered that land on Anderson Island was way cheaper than he expected.

As a firm believer in the phrase “if it seems too good to be true, it probably is,” he asked me what the catch was. Was it crime? Terrible weather?

Usually, when real estate is that affordable, it’s because demand is low and sellers need to lower the price just to get interest. So let’s talk about what Anderson Island is really like—and why property there tends to stay cheap.

About Anderson Island

Anderson Island is the southernmost island in Puget Sound and part of Pierce County. It’s home to just over 1,000 full-time residents, though many houses belong to seasonal snowbirds who spend their summers here and head south for the winter.

The only way to access the island is by private boat or via a 20-minute ride on the Pierce County Ferry from the city of Steilacoom, just west of Lakewood.

Anderson has been a popular retirement destination since the 1960s, and the demographics reflect that—the average age on the island is 54, well above the Washington state average of around 37.

About one-third of the island is owned by the Riviera Homeowners Association (aka “The Riv”), which functions as a quasi-governmental body for its section of the island. There are no incorporated towns or cities—Anderson is unincorporated Pierce County territory. The Riv’s rules only apply to its specific territory.

Reason #1: The Ferry

Let’s start with the big one.

Yes, the island is only accessible via ferry (or your own boat), but let’s clear up a common misconception right away. You might hear that the ferry stops running at 6 PM and only runs a few trips a day. That used to be true, but it’s no longer the case.

After pressure from island residents in 2020, the county expanded the ferry schedule to 14 trips per day in winter and 18 in summer, with the last departure from Steilacoom around 10 PM.

Sounds better, right? Well, yes—but the problems aren’t totally solved. The main vessel, the Steilacoom II, holds just 54 vehicles and 299 passengers. On weekends or holidays, a full ferry can mean two- to three-hour waits to get on or off the island.

And breakdowns can be a serious issue. In February 2023, the ferry’s backup generator failed—and since the backup vessel was also offline, the island had no ferry service for 48 hours. That kind of uncertainty makes daily life (or emergency planning) a little tricky.

Reason 2: Small Number of Services

Another myth I’ve seen floating around online is that there are no stores on Anderson Island. That’s not true.

There is a general store at the center of the island that carries groceries, gifts, and everyday supplies. There are also a couple of restaurants—Anderson Island Café and Riviera Lakeshore Restaurant—along with a small museum and a gift shop.

But that’s about it.

There are no hospitals or urgent care clinics on the island. The fire department has an EMT on call, but for anything serious, you’ll need to take a Life Flight floatplane or wait for a ferry to the mainland and then drive to Tacoma or another nearby city.

There’s no pharmacy, no gas station, no school beyond elementary. If you don’t plan ahead or own a reliable vehicle (or boat), island life gets logistically complicated pretty fast.

Reason #3: Building Logistics

While Anderson Island is unincorporated, it still falls under the oversight of Pierce County, which has relatively strict building codes—especially when it comes to preserving trees and environmental aesthetics.

If your land is inside The Riv, you’ll face even more restrictions. For example, you’re not allowed to camp on your property while building, and there are no hotels on the island. There are some Airbnb and VRBO listings, but that adds another expense if you’re planning to build your home over time.

Also, unless you’re bringing in a prefabricated or modular home via barge, expect to ferry in construction materials piece by piece. Between transport limitations, county regulations, and housing code inspections, building here isn’t impossible—but it’s more complex than on the mainland.

Reason #4: The Retirement Community

Let me be clear: this isn’t a knock on the retirees who call Anderson Island home. But it’s a big piece of the puzzle when it comes to lifestyle expectations—and why younger buyers might feel out of place.

The island has a close-knit, mostly older population that values peace and quiet. Nearly everything closes by 8 PM. Community events wind down early. And late-night noise isn’t exactly welcomed with open arms.

That’s not a bad thing—but if you’re looking to host BBQs until midnight or invite friends over for a weekend party, it might be a mismatch.

If you do plan to settle on the island, just know that social norms are a bit more low-key, and going with the flow will go a long way in helping you feel at home.

Summary and Final Thoughts

So why is land so cheap on Anderson Island?

It mostly comes down to access. The ferry is limited and occasionally unreliable. Services are minimal. Construction comes with logistical hurdles. And the lifestyle leans heavily toward quiet, retiree-paced living.

That said, there are good reasons to consider it. If you own a boat or don’t need to commute often, ferry limitations are less of a problem. The island is beautiful and peaceful, with forested lots, trails, and water views everywhere you look.

There have also been some quiet discussions about restricting short-term rentals on the island—especially in The Riv—due to concerns about visitors ignoring community norms. So if you want to check it out before committing, now may be the best time to book a campsite or vacation rental.

Whether you’re looking to buy land or just explore somewhere new in the PNW, Anderson Island offers something that’s getting harder and harder to find: solitude, scenery, and a slower pace. It’s not for everyone—but for the right person, it might be exactly what you’re looking for.