Our recent market snapshot turns to the South Puget Sound and considers how it is progressing across a host of metrics that, combined, provide an indication of the region’s economic vitality. With more than 25 years of service to individual and commercial customers in the area, our bankers offer a locally informed perspective on the numbers that, when standing alone, can tell just part of the story in Tacoma and Pierce County.
Key highlights.
1. The local environment is conducive to entrepreneurs.
Business formation activity has accelerated meaningfully in recent years, with new business applications in Pierce County rising 39 percent since 2020, highlighting a resilient and increasingly entrepreneurial local economy.
Business formation activity has accelerated meaningfully in recent years, with new business applications in Pierce County rising 39 percent since 2020, highlighting a resilient and increasingly entrepreneurial local economy.
Private establishments, including offices, retailers, manufacturers, restaurants, and healthcare providers, offer a useful gauge of business activity in Pierce County. Establishment counts increased from roughly 21,600 in 2015 to more than 26,000 by 2021–2022, reflecting strong business growth. While activity has eased more recently, the local business environment has remained relatively resilient despite higher interest rates and economic uncertainty.
2. Key industries support a healthy labor market.
Pierce County’s labor market has softened modestly after several years of strong post-pandemic recovery. Unemployment, which fell back into the mid-4 percent range during 2023 and 2024 following the sharp 2020 spike, has recently moved above 6 percent entering 2026 as hiring demand cools. Even so, the county continues to benefit from long-term support tied to healthcare, logistics, affordability advantages relative to King County, and the stabilizing economic impact of Joint Base Lewis-McChord.
3. Housing is under pressure yet showing ownership advances.
With persistently high mortgage rates, as compared to lower rates of recent years, and high prices, home affordability has remained a sore point in Tacoma and Pierce County. Nonetheless, ownership has ticked up in the county in recent years, and bankers are noticing that buyers are looking to resources to help them make their homeownership dreams a reality.
The path forward.
While the future may be uncertain as always, individuals and businesses in Pierce County are learning and growing as economic conditions evolve. Already, the region has grown into a more family, youth and business-friendly urban environment than it was decades ago, and the development of greater diversity in the economic backdrop bodes well.
For more insights about the Tacoma and Pierce County economic picture — including data on jobs and industry, commercial real estate, housing starts and income — review the full report here. Or, stop by our new financial center at 950 Pacific Ave. in downtown Tacoma to meet our South Sound team and discuss their thoughts in person.