Washington has experienced the steepest decline in construction employment of any U.S. state over the past year, shedding approximately 11,300 jobs between June 2024 and June 2025, according to new analysis from the Associated General Contractors of America (AGC), as reported by The Puget Sound Business Journal.
AGC Chief Economist Ken Simonson attributed the slowdown to a tightening financial environment, noting that either “developers have pulled back” or lending institutions have significantly reduced financing for major projects. Roughly one-third of these lost jobs were in the densely populated Seattle-Tacoma-Bellevue corridor, where broader economic trends are reshaping the landscape.
Among those trends is a sharp rise in office vacancies. Seattle’s commercial real estate market continues to reel from the long-term effects of remote work, with vacancy rates hovering near 30%. As demand for physical office space dwindles, the value of many office properties has weakened, slowing new construction initiatives.
Despite the decline in construction activity, several major projects remain underway in the region. These include the ongoing renovation of Microsoft’s Redmond campus, the East Link light rail extension, and development in Bellevue’s Spring District.
Interestingly, while construction jobs are on the decline, home prices in the greater Seattle area continue to climb. A new report from Remax ranks Seattle as the third most expensive metro region in the country in terms of median home sale price—trailing only San Francisco, Los Angeles, and San Diego.
The report places Seattle’s median home price at $766,725, factoring in sales across King, Pierce, and Snohomish Counties. This milestone marks an all-time high for the region and underscores the persistent demand in the residential real estate market, even as parts of the construction sector falter.
