For the first time since the pandemic, a new report from the Downtown Seattle Association (DSA) shows crime is going down, more people are moving to Seattle than leaving, and tourism is booming.
However, DSA officials say there’s a catch: businesses are rapidly leaving the city.
DSA CEO Jon Scholes tells us this could tank Seattle’s economy in the long run.
In Downtown Seattle’s 2025 report, there are several positive trends.
“We are going in the right direction to making sure downtown is safe and healthy and clean and welcoming for everybody,” Scholes said.
But the decrease in job growth is still a glaring issue. The report shows 35% of Seattle’s office and retail spaces are sitting empty.
“We are at a fragile point; it’s important to note we have not grown jobs in the last three years,” Scholes said.
He tells us the Emerald City lost more than 13,000 jobs in 2025. He cites high taxes and salary requirements as the main problems.
“We are very concerned with the significant new taxes our city has put in place on employers in the last few years.”
In addition to several other taxes, the 5% Social Housing Tax on employee compensation exceeding $1 million also kicked in this year.
He says jobs are moving to Bellevue and other cities to escape the rates.
“We’ve made it too expensive and difficult,” Scholes said. “All of those folks have other choices.”
Scholes said they’re asking city officials to reconsider the tax rates slapped on businesses in hope they city’s economy doesn’t tank in the future.
“It’s time to go to our city leaders and say ‘hey we don’t need more businesses paying taxes we need to grow jobs, we need more businesses in the city paying taxes’,” Scholes said.
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