Lacey community report highlights aging demographics and retail trends

The Planning Commission meeting held on May 28, 2025, in Lacey, Washington, focused on significant demographic changes and economic trends affecting the community. Key discussions highlighted the rapid growth and transformation of Lacey, emphasizing an aging population and increasing diversity.

The meeting revealed that Lacey's demographic landscape is evolving, with a notable increase in residents identifying as Hispanic or Latino, as well as those identifying with multiple races. This shift is occurring alongside a trend of smaller household sizes, which may reflect both younger single-person households and older residents living alone. The data suggests that families with children are becoming less prevalent in Lacey compared to other areas in Thurston County.

Economic discussions centered on Lacey's role within a regional economy, where city boundaries are less significant for employment and shopping patterns. Many residents commute to work in neighboring cities, while individuals from other areas come to Lacey for employment. Approximately half of Lacey's workforce is employed in education, health, government, and retail sectors, largely influenced by nearby major employers, including the city of Olympia and Joint Base Lewis-McChord.

The meeting also addressed retail activity, comparing Lacey and Olympia. It was noted that Lacey has a surplus in certain retail categories, such as general merchandise and sporting goods, indicating that shoppers from outside the city contribute to local sales. Conversely, Olympia experiences leakage in retail, with residents traveling to other cities for specific goods and dining options.

Lastly, the discussion touched on real estate trends, noting significant industrial and housing developments in Lacey. However, the Midtown area faces challenges with higher vacancy rates in retail and office spaces compared to the county average. Despite this, there are signs of improvement, with interest in filling vacant properties and new retail developments underway.

Overall, the meeting underscored the dynamic changes in Lacey's demographics and economy, highlighting both challenges and opportunities for the community's future growth and development.