Pierce County Economic Outlook for 2025 Shows Growth Amid Persistent Challenges

New Report Highlights Steady Job Creation, Easing Inflation, and Housing Affordability Struggles.  

The Tacoma-Pierce County Chamber (TPCC) presents its Pierce County Economic Index (PCEI) Report for 2025, a pivotal tool for understanding the county's economic health and prospects. The report, authored by economist Dr. Neal Johnson, highlights a mix of growth and challenges alongside trends in GDP, labor markets, housing, and retail sales, while forecasting moderate growth and ongoing challenges for key sectors in 2025. 
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“This PCEI Report gives our members the insights they need to navigate the year ahead with resilience while acknowledging the headwinds still facing Pierce County. While we’re seeing progress in personal income and job creation, challenges in housing affordability and retail spending underscore the lingering effects of high interest rates and inflation,” said Andrea Reay, President & CEO, TPCC. “We hold a cautiously optimistic outlook for Pierce County. From job creation to housing affordability, this report helps our community take informed steps toward building a stronger, more equitable economy. Our commitment is to ensure that businesses—big and small—have the tools to succeed.”  

Key Findings: 
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• Economic Growth: The PCEI is forecasted to rise 1.6% in 2025, with gains driven by increasing personal income and improved GDP contributions from key sectors like government and real estate. The rise underscores the resilience of Pierce County’s economy. Total real personal income is expected to grow by 1.8%, with per capita income reaching $69,680. This demonstrates there has been an ongoing recovery following the economic disruptions of recent years that is now capable of acting as a stable economic foundation for local businesses to create new opportunities. 

• Employment Trends: Pierce County anticipates 2,750 new jobs in 2025, primarily in education, health services, and trade sectors. However, challenges remain for construction employment as high mortgage rates impact residential development. With labor force growth of 0.8 percent, now is the time for employers to align workforce strategies that tap into emerging talent. 

• Housing Market: While mortgage rates eased slightly in 2024, housing affordability remains below historical averages. The Housing Affordability Index is forecasted to rise modestly, ending 2025 at 93.1. This is below the benchmark of 100, limiting housing accessibility for many families. Though new housing listings climbed 12.4 percent in 2024, closed sales lagged at 2.7 percent, reflecting continued hesitancy or obstacles among buyers. Addressing housing affordability is critical to maintaining and promoting Pierce County’s competitive edge in attracting and retaining talent.  

• Retail and Trade: Taxable retail sales are expected to rebound 2.3% in 2025, following a 2.8 percent decline in 2024. This reflects cautious optimism, especially in the food and beverage industry, in consumer spending despite national economic uncertainties. ​

Spotlight on Key Industries: 
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• Port of Tacoma: The Port is a cornerstone of our economy, and the Northwest Seaport Alliance recorded an 11.3% increase in container traffic for 2024, with steady activity forecasted for 2025, demonstrating Pierce County’s vital role in global trade 

• Real Estate and Construction: Commercial real estate saw modest activity with a 3.6 percent growth in industrial warehouse inventory, while residential construction remains constrained by high borrowing costs. These trends underscore the need for targeted policies to improve housing affordability and leverage opportunities in growing industrial sectors. ​

As Pierce County continues its trajectory, businesses, policymakers, and residents must focus on fostering resilience. Investments in education, infrastructure, and affordable housing will be critical to overcoming challenges along with monitoring federal policies on interest rates and tariffs, as these factors significantly impact the county’s economic outlook. 

The Tacoma-Pierce County Chamber invites community members, stakeholders, and business leaders to explore the full Pierce County Economic Index Report, available on the Chamber’s website. ​