Market Snapshot: Washington

Market Snapshot: Washington

50 states in 50 weeks – This series leverages our market intelligence database to bring you powerful AE industry insights. Each week, we highlight a new state in green while previously featured states fade to a lighter green. Next, let’s look at Washington.

Washington Economic Performance and Outlook Grade*: B

• Economy: A-
• Population: B+
• Workforce: C
• Financial/Fiscal Health: D+

* Overall grade is assigned based on a curve (relative to all states’ performances).

While demonstrating strong population and economic growth, Washington state faces an historic $12 billion budget deficit over the next four years. The Evergreen State ranked sixth in real GDP growth between 2020 and 2024, according to the U.S. Bureau of Economic Analysis, and the University of Virginia’s Cooper Center forecasts that the state’s population will rise from 7.7 million in 2020 to 8.5 million in 2030, the fifth-largest bump in the country. By 2050, Washington’s population is projected to be 10.2 million, making it the tenth-most populous state (up from thirteenth today). State lawmakers approved a six-cent gas tax hike to cover transportation budget shortfalls due to skyrocketing construction costs, flagging revenue, and a court-ordered removal of state-owned culverts blocking fish migration in western Washington, which could cost over $7 billion. The country’s leading hydroelectric power producer, Washington is in the forefront of reducing greenhouse gas emissions. The 2019 Clean Energy Transformation Act committed Washington to an electricity supply free of greenhouse gas emissions by 2045, and the 2021 Climate Commitment Act instituted a cap-and-trade program for major greenhouse gas emitters. See below for regional highlights in Washington:

• Seattle: Driven by a strong tech industry and immigration, Seattle’s population grew 40% in the last 20 years. In November, voters approved an eight-year, $1.55 billion transportation levy that will spur projects. Sound Transit is undertaking the country’s largest mass transit expansion that will double the size of the light rail system and add 46 miles of bus rapid transit by 2041 at an estimated cost of $148 billion. 
• Spokane: Eastern Washington hasn’t seen the same population explosion as the Puget Sound region, but Dodge Data & Analytics projects construction starts to grow by 25% in 2025. The North Spokane Corridor megaproject includes improvements in freight and commuter transportation. Spokane International Airport is undertaking a terminal renovation and expansion, and a bus rapid transit system is in development. 
• Tacoma: The city’s port is undertaking expansion projects, but lowered international trade due to tariffs could impact the regional economy.

For sector-specific data and insights for Washington or questions about our market intelligence and research services, call/text Rafael Barbosa at 972-266-4955 or email [email protected].

For a comprehensive outlook for 2025, you can access the 2025 AE Market Intelligence Webinar (recorded on January 28). Click here for details.