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Market Demand and Hiring Trends for Spring/Summer 2025

Washington State’s construction sector is approaching spring/summer 2025 with mixed signals in demand and hiring. On one hand, industry forecasts show cautious optimism for an uptick in projects, while on the other, labor market projections suggest only modest growth in employment. Key trends include:

• Contractor Confidence: In a late-2024 survey of Washington contractors, more firms expected the volume of projects in 2025 to increase rather than decrease​ agc.org. Over half of respondents anticipated higher dollar-value project opportunities compared to 2024, indicating many builders are hopeful for a busy 2025 season. This optimism spans multiple segments – from public infrastructure to multifamily housing – reflecting pent-up demand and new funding sources in the pipeline.

• New Home Construction: Housing industry forecasts are projecting a rebound in home building activity. Washington REALTORS® noted a 2025 housing forecast calling for a +13.8% increase in new-home construction (with a shift toward smaller, affordable homes)​ linkedin.com. This suggests homebuilders expect to ramp up production as we enter the spring selling season, which could keep roofing, siding, and other trades busy. However, this growth comes after a slow 2024, so builders remain cautious about oversupply in the face of high interest rates.

• Hiring and Labor Shortages: Despite anticipated project growth, adding workers remains challenging. The state’s Economic and Revenue Forecast Council predicts overall Washington job growth will slow to ~0.6% in 2025, down from 1.1% in 2024​ spokesman.com spokesman.com . In particular, construction hiring is expected to stay sluggish through 2025 and only really rebound in 2026​ spokesman.com . Recent Employment Security data showed Washington’s construction employment actually declined year-over-year (down ~10,400 jobs from Feb 2024 to Feb 2025, largely among specialty contractors)​ esd.wa.gov esd.wa.gov . This decline reflects the tail end of the 2024 slowdown. Many contractors still report difficulty finding skilled workers – nearly 78% of firms struggle to fill craft trade positions​ agc.org , which could constrain how many projects can be tackled even if demand rises. Companies are trying to hire for the spring ramp-up, but the labor shortage and competition for talent remain pressing issues.

In summary, market demand is expected to be solid in spring/summer 2025, especially relative to the cooling seen last year. Contractors are gearing up for more work, and housing developers anticipate improved conditions for building. Yet, the hiring outlook is restrained – firms may not be able to staff up easily to meet the seasonal peak. This imbalance between demand and workforce means we could see a busy season where construction firms have full project backlogs, albeit with longer lead times or capacity constraints due to labor availability.

Construction Activity Indicators and Drivers

Several indicators and drivers help gauge whether Washington’s construction, roofing, siding, and landscaping businesses will have a bustling season:

• Residential Building Permits & Housing Demand: Residential construction activity in 2024 was muted by high mortgage rates, but there are signs of a possible spring rebound. For example, in the Seattle area, housing market activity picked up significantly by March 2025, with 54% of listings going pending within 30 days (up from 39% in February)​ themadronagroup.com. This points to buyers re-engaging as we enter spring, which in turn motivates builders and remodelers to start projects. However, permit data shows how far things had slowed: the City of Vancouver (Clark County) issued only 1,245 residential unit permits in 2024, barely half the volume of a few years prior​ columbian.com . Builders in Southwest Washington have said they will be cautious about how many new homes to start in 2025 given interest rate impacts on buyer affordability​ columbian.com. In short, housing demand exists (especially with low resale inventory pushing people toward new construction), but high financing costs and affordability challenges put a governor on how fast residential construction can grow.

• Commercial & Infrastructure Projects: Non-residential construction presents a mix of bright spots and slowdowns. The Puget Sound region is still working through a substantial backlog of projects, especially in multifamily housing. Downtown Seattle, for instance, has over 4,000 apartment units actively under construction – more than any peer city – which signals an ongoing building boom in early 2025 downtownseattle.org . This is keeping contractors and subcontractors (including siding and roofing installers) busy finishing high-rise projects. That said, new project starts in Seattle have fallen sharply; only 11 new development permit applications were filed in downtown in 2024​ downtownseattle.org , a steep drop from prior years. Commercial office construction has essentially paused (Seattle currently has no new office buildings under construction downtown)​ downtownseattle.org due to high vacancies and shifts in work patterns. Instead, activity is centered on renovations and sectors like lodging, retail, and public facilities, which Washington contractors are relatively optimistic about for 2025​

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  . Importantly, public infrastructure is picking up: funding from the federal Infrastructure Investment and Jobs Act and state transportation packages is flowing into road, bridge, and utility projects. Contractors in Washington expect modest growth in highway and transportation construction in 2025​ agc.org , which will boost civil construction jobs and related trades (e.g. concrete, heavy equipment) over the summer. In summary, commercial construction is a tale of two sides – private-sector development is slower in some categories (office, industrial) while public and institutional projects (schools, transportation, health facilities) are providing new work and keeping overall construction activity from slumping​ tacomachamber.org

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• Remodeling and Landscaping Demand: Even when new construction slows, remodeling and outdoor improvements tend to stay steady or grow, especially heading into summer. Many Washington homeowners who feel “locked in” by low mortgage rates (unwilling to sell and buy a new home at higher rates) are choosing to invest in upgrades to their current homes​ columbian.com . This drives demand for roofing replacements, new siding, decks, and landscape renovations as the weather improves. Landscaping services in particular see a strong seasonal uptick each spring – the industry typically does the bulk of its business in Q2 and Q3 when property owners refresh lawns and gardens. Nationwide, the landscaping sector has been growing and is valued at billions annually, and Washington’s landscaping market is expected to expand to around $3.5 billion by 2025 per market research estimates​ ibisworld.com . Local landscape contractors report that outdoor living space projects remain popular going into 2025, with homeowners seeking features like sustainable native plantings, patios, and fire pits to enhance their yards​ uyetalandscape.com uyetalandscape.com . This suggests lawn care and landscape design-build firms should indeed have a busy spring/summer season, barring any unusual weather. Similarly, roofing contractors often note that peak roofing season is late spring through summer – and with many roofs aging and some storms in recent years, re-roofing demand in Washington has been solid. (For instance, industry data shows wait times and prices for roofing tend to rise in spring/summer due to high demand thisoldhouse.com .) Overall, home improvement activity is an important contributor to construction workload, and indicators point to healthy renovation and landscaping demand this season as people focus on home investments.

Residential construction underway in Washington State (Clark County). Builders are cautiously adding new homes amid high interest rates, but demand for housing keeps construction ongoing​ columbian.com columbian.com

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Weather and Economic Factors Influencing Demand

Several external factors will influence just how busy Washington’s construction, roofing, and landscaping season gets in 2025. Weather patterns and economic conditions both play a role:

• Seasonal Climate Outlook: Washington’s climate naturally dictates a strong construction season in spring and summer, when drier weather permits extensive outdoor work. For 2025, climate forecasters are not expecting any extreme El Niño or La Niña conditions through the summer – the Climate Prediction Center projects ENSO-neutral conditions into mid-2025​ cpc.ncep.noaa.gov

  . This typically means no major deviation from normal weather patterns. In practical terms, we can anticipate the usual mild, wet spring transitioning to a dry summer, which should allow projects to proceed on schedule. A relatively dry, warm summer (common in El Niño years) can extend the window for roofing and paving jobs, while an unusually wet spring could cause some delays. As of now, no severe weather disruptions are forecasted for Washington that would curtail the construction season. Contractors will of course keep an eye on wildfire risk in late summer (an increasing concern in eastern Washington), but early-season conditions look favorable for a full slate of projects.

• Interest Rates and Financing: The broader economic environment – especially interest rates – is a big swing factor for construction demand. The past year’s spike in mortgage rates (hovering around multi-decade highs) cooled the housing market significantly, as seen in the drop in permits and new starts. These high borrowing costs also affect commercial development and even public bond-funded projects. The good news is that many forecasts expect rates to stabilize or even dip slightly by late 2025, which could improve builder confidence. In the meantime, high rates continue to dampen some demand: for instance, Pierce County’s 2025 outlook notes that high mortgage rates are restraining residential development and construction employment locally​ tacomachamber.or . If inflation continues easing, the Federal Reserve might begin cutting rates in the latter half of 2025​ interactive.usa.skanska.com , but for this spring and summer, builders are navigating a still-tight financing environment. Economic growth in Washington remains positive but slower, and there is persistent talk of recession risk which can make both developers and homeowners more cautious. Despite these headwinds, Washington’s strong population and job growth in recent years mean there’s underlying demand for homes and infrastructure – it’s really a question of timing and affordability. Many projects put on pause due to costs may move forward once economics improve. For now, expect continued selectivity in launching new projects: viable, well-funded developments (especially in affordable housing or public works) will proceed, while more speculative or marginal projects might wait for clearer economic skies.

• Materials Costs and Supply Chain: Another economic factor is the cost and availability of construction materials. Pandemic-era supply chain issues have been easing; a majority of contractors in Washington reported no significant supply-chain problems in 2024​ agc.org agc.org, and material costs for lumber and other inputs have stabilized from the spikes of two years ago. However, costs are still high historically, and volatility in things like fuel or global supply could impact pricing for roofing shingles, lumber, and landscaping supplies. Contractors are also warily watching new tariff policies and international events that could drive up costs​ constructconnect.com. Any sudden price surges could squeeze profit margins and cause project delays or re-scoping. On the flip side, if material prices remain steady or fall, contractors can schedule more work at stable prices, and clients may be more willing to green-light projects. Overall, the economic backdrop is one of high costs and interest rates gradually coming down, which suggests that while 2025’s spring/summer will see plenty of work, it’s not the frenzied boom of a low-interest, low-cost environment. Companies that adapt to these conditions – through cost efficiency or niche services – should still find the season rewarding.

Regional Insights from Seattle to Spokane

Washington is a diverse state, and construction activity can vary widely by region. Here are some regional insights for cities and areas like Seattle, Spokane, Tacoma, and Vancouver heading into the 2025 busy season:

• Seattle & Puget Sound: The Seattle metro area is expected to remain one of the busiest construction hubs in the state through summer 2025. The city and surrounding Puget Sound communities have a strong pipeline of projects underway. As noted, downtown Seattle leads the nation in residential units under construction (4,000+ apartments) which will keep crews occupied completing high-rises downtownseattle.org. The regional housing shortage and tech-driven growth continue to spur development in Seattle and Eastside cities (Bellevue, Redmond), though at a moderated pace. One trend is a pivot to multifamily and transit-oriented projects rather than new single-family subdivisions in King County. Major public projects like Sound Transit light rail expansions, highway improvements, and a proposed new Seattle arena are also contributors to local construction activity. That said, the cool-down in new project starts is being felt – Seattle’s permit numbers for new projects dropped sharply in 2024 downtownseattle.org. Contractors around Seattle are thus busy finishing existing projects but seeing fewer new ones breaking ground. For trades like roofing and siding, the many ongoing apartment and condo builds are a source of work, as is a robust home remodeling market in Seattle’s suburbs. Overall, Seattle/Puget Sound enters spring 2025 with solid construction momentum (thanks to projects already funded or in progress), even as developers carefully watch economic conditions before launching the next big wave of towers.

High-rise construction in Seattle’s South Lake Union district, with the Space Needle in view. Seattle has thousands of units under construction, keeping crews busy through 2025​ downtownseattle.org even as new development slows in the high-interest rate environment​ downtownseattle.org.

• Spokane & Eastern Washington: In eastern Washington, the outlook is a bit more subdued. The Spokane area enjoyed a burst of construction permitting in early 2024, but that has given way to a slowdown and stabilization at a lower level going into 2025​ spokanejournal.com . Local experts describe the region’s construction cycle as coming off a peak and now “stabilizing at a slower rate.” This means Spokane contractors aren’t expecting a huge boom this summer; instead, activity will likely hold steady or dip slightly compared to last year. Residential construction hasn’t kept up with demand in Spokane, leading to a housing shortage, but high interest rates and higher construction costs have made builders and buyers cautious​ spokanejournal.com . Commercial projects in Spokane are also fewer than a couple of years ago. Despite this, there are still notable developments: public sector work (schools, healthcare facilities) and some ongoing private projects (industrial parks, multifamily) will provide work. Spokane’s labor market remains tight – any uptick in projects could quickly strain the available workforce. Smaller cities in eastern Washington (Tri-Cities, Walla Walla, Yakima) similarly report moderate construction activity. For instance, data center construction – which had been booming in central WA – is slowing in 2025 as that sector pauses new builds​ agc.or . The takeaway for Eastern Washington is cautious optimism: the region likely won’t see a huge spring surge, but steady demand (especially for infrastructure upgrades and much-needed housing) should keep contractors reasonably busy through summer, just without rapid growth.

• Tacoma & Pierce County: In the South Sound (Tacoma/Pierce County), the economic forecast is “cautiously optimistic” for 2025, with moderate growth expected​

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  . Pierce County’s construction scene is influenced by both the Seattle metro trends and its own local factors. Housing affordability is a key challenge – Tacoma’s home prices have risen, and higher interest rates mean fewer first-time buyers, dampening new home construction locally. The Pierce County Economic Index report projects that while jobs will grow in sectors like health and education, construction employment will face headwinds due to the housing market​ tacomachamber.org. Fewer new subdivisions are being built around Tacoma right now than during the pre-2022 boom. Nevertheless, there are positive signs: Tacoma has several large public projects (such as port expansions, a bridge replacement, and civic buildings) in progress or starting, which will employ many trades. The region is also seeing investments in warehouses and distribution centers along the I-5 corridor, albeit at a slower pace than a couple of years ago. Home remodeling and infill development in Tacoma are on the rise as an alternative to big new developments. As for roofing, siding, and landscaping companies in Pierce County, they should still see a busy summer mostly driven by maintenance and retrofit projects. Many homeowners in the area are upgrading older housing stock (new roofs, new sidings, yard makeovers) since moving is less attractive in the current mortgage climate​ columbian.com. In summary, Tacoma and Pierce County are looking at a stable but not skyrocketing construction season – plenty of work to go around, especially on publicly funded projects and renovations, even if the private housing construction side remains a bit restrained.

• Vancouver & Southwest Washington: The Vancouver metro (Clark County) shares many dynamics with the broader Portland region. Coming into 2025, high interest rates and affordability concerns have significantly cooled new housing construction in Clark County​ columbian.com columbian.com. As reported by The Columbian, the city of Vancouver saw a dramatic drop in permits – only 145 new single-family home permits in 2024, down from 572 in 2021​ columbian.com. Builders are clearly pulling back on speculative building until they’re confident homes will sell without deep discounts​ columbian.com. This suggests the spring 2025 new-home market in Southwest Washington will be quiet compared to recent years. However, demand hasn’t disappeared: the region still has low housing inventory and people moving in, which should eventually translate into more construction once interest rates ease. Meanwhile, commercial and public construction in Clark County is providing some lift. There are ongoing school construction projects (thanks to recent bond measures) and infrastructure improvements in the Vancouver area that keep contractors occupied. The home repair and improvement market is strong here too – many are staying put and renovating. Landscaping firms in Southwest Washington will likely have a solid summer as well, since the area’s population growth drives constant need for yard services in new and existing homes. One positive note is that Vancouver’s economy is fairly healthy (higher incomes and a vibrant housing market are noted as trends)​ watrust.com , so the foundation is there for a future uptick. For 2025 though, expect moderate activity: construction companies in Clark County are staying busy finishing projects started in earlier years and taking on smaller builds, but they are holding off on aggressive expansion until interest rates or policies improve the housing affordability situation.

Conclusion

In conclusion, Washington State is poised for a relatively active spring and summer 2025 in construction and related trades, though not without challenges. Market indicators and industry sentiment suggest that demand will be higher than last year in many segments – contractors are broadly anticipating more work, and certain forecasts (like for new home construction) are bullish​ linkedin.com . The seasonal upswing, combined with ongoing projects (especially in the Puget Sound region), points to a busy period for builders, roofers, siders, and landscapers. At the same time, macro-economic factors like elevated interest rates and past overbuilding in some areas are tempering the pace. We likely won’t see an explosive boom, but rather a steady flow of projects with some growth over 2024 levels. Labor shortages remain a concern, meaning companies may struggle to staff all the work that comes their way​ agc.org – a factor that could itself cap how “busy” the season ultimately gets.

Regional nuances are important. Seattle and the greater Puget Sound will continue to be a hotspot of construction activity (especially completing large residential and infrastructure jobs)​ downtownseattle.org , while markets like Spokane and Vancouver are more in a holding pattern awaiting better economic conditions​ spokanejournal.com columbian.com . Weather forecasts are favorable for a full construction season, and no major climate disruptions are expected to knock projects off schedule. Furthermore, ongoing public investments (roads, bridges, schools) are providing a floor of demand that should keep many contractors busy even if private development slows​ tacomachamber.org.

In summary, Washington’s construction, roofing, siding, and landscaping industries should prepare for a healthy spring/summer 2025, with plenty of work particularly in housing-related projects, remodels, and public infrastructure. Growth may be modest rather than meteoric, but after the cooling in 2024, even a modestly busier season is welcome news. Homeowners and businesses are still investing in properties, and the need to build and improve doesn’t vanish – it shifts to the projects that make the most sense under current conditions. Barring any economic downturn or unforeseen weather events, expect Washington’s contractors to be hard at work through the summer, navigating both the opportunities of increased demand and the challenges of a tight labor market and higher costs. As one local outlook aptly put it, it’s “half speed ahead” spokesman.com – not full throttle, but moving forward – for Washington construction in 2025.

Sources:

• Washington Employment Security Dept., press release on state employment (Feb 2025)​esd.wa.gov esd.wa.gov

• Spokesman-Review summarizing Economic Forecast Council projections​ spokesman.com spokesman.com

• Associated General Contractors (AGC) of Washington – 2025 Construction Outlook Survey​ agc.org agc.org

• Washington REALTORS® 2025 Housing Forecast​ linkedin.com

• Puget Sound Business Journal / Downtown Seattle Assoc. – construction pipeline report​ downtownseattle.org downtownseattle.org

• Spokane Journal of Business – 2025 outlook (slower pace expected)​ spokanejournal.com

• Tacoma-Pierce County Chamber – Pierce County Economic Index 2025 report​ tacomachamber.org

• The Columbian (Clark County) – homebuilder outlook amid high rates​ columbian.com columbian.com

• Washington State Climate Office / NOAA – Climate and ENSO outlooks​ cpc.ncep.noaa.gov

• Industry publications & reports on construction and landscaping trends​ uyetalandscape.com thisoldhouse.com