The North Puget Sound region has long been defined by its diversity — of industries, geography, and communities. From aerospace manufacturing in Snohomish County to agriculture and global trade flowing through Skagit and Whatcom, the regional economy is both complex and deeply interconnected. Washington Trust’s North Puget Sound Market Snapshot offers a look at how these forces are evolving — and what they mean for businesses, families, and individuals planning their next move.
The findings point to a region that is resilient, innovative, and growing, but also facing meaningful constraints that will define the next chapter of economic development.
Entrepreneurial momentum remains a bright spot
One of our report’s most encouraging signals is the sustained growth in new business formations, dating all the way back to 2013. Even coming out of the Great Recession and during the uncertainty of the pandemic years, entrepreneurial activity continued to rise as displaced workers, remote professionals, and relocating households turned disruption into opportunity.
While the total number of private establishments has not yet returned to pre pandemic peaks, the underlying trend is clear: North Puget Sound has the capacity to create businesses quickly. The challenge ahead is not generating ideas — it’s helping promising companies scale, stabilize, and integrate into strong local supply chains.
For business leaders and policymakers alike, this means that support systems matter more than ever. Access to capital, technical expertise, and workforce readiness will determine whether today’s startups become tomorrow’s anchor employers.
Services surge while goods production faces pressure
The report highlights a structural shift familiar across the U.S., but especially pronounced locally: services have outpaced goods production over the past two decades. In Snohomish County, services continue to expand while manufacturing has plateaued since its pre pandemic peak. In Skagit and Whatcom counties, goods production remains below levels last seen before the Global Financial Crisis.
This imbalance presents both risk and opportunity. While a strong service sector supports employment and stability, long term economic resilience depends on maintaining a healthy mix of industries. The region’s aerospace expertise, agricultural base, and proximity to ports position it well to benefit from reshoring and supply chain modernization — if investment keeps pace.
A tightening labor market reshapes growth strategies
Employment data across all three counties confirms what many employers already feel: the labor market is running at or near full employment. Unemployment rates remain low, and growth is increasingly constrained by workforce availability rather than demand.
The composition of employment varies by county. Government, healthcare, and retail dominate in Whatcom and Skagit, while Snohomish’s workforce remains anchored by manufacturing — employing more than 56,000 people — reflecting Boeing’s continued influence. Recent job changes show softness in retail, leisure, and hospitality, contrasted by strength in manufacturing and construction, underscoring the importance of industrial and infrastructure investment.
Looking ahead, future growth will depend less on job creation alone and more on workforce participation. Upskilling, engaging underrepresented labor pools, addressing childcare gaps, and attracting new residents will all play critical roles.
Population growth collides with housing constraints
Population growth has resumed following brief pandemic era plateaus, helping offset labor scarcity—but it has also intensified pressure on housing. Since mid 2020, median listing prices have risen sharply: more than 50 percent in Skagit and Whatcom counties and over 30 percent in Snohomish. Rental rates tell a similar story, with average rents climbing dramatically across the region.
While median household incomes continue to rise, the pace varies, and affordability remains the gating factor for both recruitment and retention. Encouragingly, homeownership rates have increased across much of the region since their mid 2010s low point, signaling renewed pathways from renting to owning. Sustaining that momentum, however, will require thoughtful development strategies that align housing supply with workforce needs.
What this means for decision makers
Taken together, the findings paint a nuanced picture. North Puget Sound is not a region in decline — it is one at an inflection point. The foundations are strong: diversified industries, entrepreneurial energy, and global connectivity. But continued success will hinge on strategic investment in workforce development, industrial modernization, logistics infrastructure, and housing.
For business owners, investors, and community leaders, understanding these dynamics isn’t — it’s essential for informed planning and risk management.
Go deeper with the full report
This blog highlights just a fraction of the insights contained in our North Puget Sound Market Snapshot. The full report includes more data analysis and expert perspectives from our local team designed to support smarter decisions in a rapidly changing economic environment.
If you’re evaluating expansion plans, workforce strategies, real estate decisions, or long term investments in the region, this report provides needed context.