Federal Way sits between Seattle and Tacoma along I-5, with lakes, big parks, Puget Sound shoreline and a mix of established neighborhoods and newer subdivisions. It is one of the more approachable King County cities for buyers, and it now has light rail service to Seattle and SeaTac.
Buyers will find that about $646K buys a single-family home here, while condos around $285K give a lower entry point near the transit center and the downtown core. Sellers do best when pricing matches their specific neighborhood, since a lakefront or Sound-view home can trade very differently from an interior lot a mile away.
Source: Northwest MLS via InfoSparks, Federal Way, about the 12 months through August 2026.
Browse Federal Way homes by type and price
Single-family homes
Condos and townhomes
Federal Way neighborhoods
Federal Way is a collection of distinct pockets, from Puget Sound bluffs to lake communities and the transit-oriented downtown core, and here are seven I have written up in detail.
Dash Point and Lakota
A Puget Sound community of bluff-top homes, forest trails and beach access through Dash Point State Park. Homes run from about 1,800 to 3,500 square feet across construction from the 1960s to the present.
Twin Lakes
An established golf course and lake community with homes mostly built between 1972 and 1990, typically about 1,800 to 3,000 square feet. Buyers who like a settled, well-kept neighborhood with long-tenured owners tend to gravitate here.
Steel Lake and Downtown
A central area built around Steel Lake Park and the S 320th Street corridor, with mostly 1960s to 1980s ramblers and some newer transit-oriented construction. It suits buyers who value transit access and walkability over lot size.
Mirror Lake
A quiet, established central neighborhood with curving streets, mature trees and a small lake, mostly ranch homes and split-levels from the 1960s to 1980s. Lakefront properties command a premium, and the neighborhood elementary school is a draw for many buyers.
Celebration Park and Easter Lake
Southwest Federal Way, built out mostly in the 1980s and 1990s around the city’s largest park, an 83.5 acre complex with athletic fields and trails. Homes are mainly two-story detached houses of about 1,500 to 2,800 square feet on generous lots, which appeals to families with kids in youth sports.
Redondo and Marine Hills
Northwest Federal Way with Sound access, the Redondo waterfront and bluff homes that can offer Cascade or Olympic views. Homes date mostly from the 1960s to the 1990s and range from about 1,400 to 2,800 square feet.
South Federal Way and Camelot
A quieter southern area near the Pierce County line with larger lots and newer subdivisions, with homes of about 1,500 to 3,000 square feet. SR-18 access makes it convenient for trips toward Auburn.
Getting around Federal Way
Federal Way sits on I-5 and SR-99, and most neighborhoods are a few minutes from an I-5 on-ramp, though weekday peak drives to downtown Seattle of about 35 to 55 minutes are common. Sound Transit’s 1 Line light rail extension opened in December 2025 with a Federal Way Downtown Station at the transit center, giving a direct rail option to SeaTac (about 20 minutes) and Seattle (about 50 minutes). King County Metro and other bus routes connect the surrounding neighborhoods to the Federal Way Transit Center, so buyers should check how close a specific address is to a bus line or the station.
Schools
Most of Federal Way is served by Federal Way Public Schools, and the elementary, middle and high school assignments vary by neighborhood, with areas such as Mirror Lake, Twin Lakes and Celebration Park each feeding different schools. Boundaries change, so please verify the assigned schools for any address directly with the district before you make an offer.
Questions I hear about Federal Way
What is the median home price in Federal Way?
The median price is about $646K for single-family homes and about $285K for condos over the 12 months through August 2026, Northwest MLS via InfoSparks.
How much of the Federal Way market is condos?
Condos and townhomes make up about 18% of Federal Way sales over the 12 months through August 2026, so most buyers here are looking at single-family homes. Condos offer a lower price point, and the condo median is about $285K.
Is there light rail in Federal Way?
Yes. Sound Transit’s 1 Line extension opened in December 2025 and includes a Federal Way Downtown Station at the transit center, with service toward SeaTac and Seattle.
Which Federal Way neighborhoods are best for commuters?
Steel Lake and the downtown core are closest to the transit center and light rail, while neighborhoods near I-5 such as Twin Lakes and Mirror Lake are a short drive to the freeway. Peak drives to downtown Seattle are often about 35 to 55 minutes, so it is worth test driving your route at rush hour.
Which Federal Way neighborhoods have water access or views?
Dash Point and Lakota and Redondo and Marine Hills sit along Puget Sound, with bluff homes and beach access. Twin Lakes, Mirror Lake and Steel Lake are built around lakes, and lakefront homes usually sell at a premium.
What school district serves Federal Way?
Most of the city is served by Federal Way Public Schools, and assignments differ by neighborhood and address. Please verify boundaries with the district before buying.
For a deeper look at the city, read my Living in Federal Way guide.
Your guide to life outside Seattle.
253-350-0045 · greg@livingoutsideseattle.com · www.livingoutsideseattle.com
