Lacey is experiencing a notable demographic shift, with a significant increase in its population aged 65 and older, outpacing growth in other areas of Thurston County. This trend, highlighted during the Lacey City Council Worksession on May 27, 2025, underscores the city's evolving community landscape.

In the past decade, Lacey has seen a rise in single-person households, indicating a mix of younger residents starting their careers and older individuals relocating to the area. Conversely, the share of larger households, typically families with children, is declining. This demographic change reflects broader national trends while also showcasing Lacey's unique growth patterns.

Employment data reveals that many Lacey residents work outside the city, with a significant portion employed in education, health, retail, and government sectors. The proximity to Joint Base Lewis-McChord and major healthcare facilities contributes to this employment landscape, as residents seek job opportunities in nearby areas while enjoying the quality of life Lacey offers.

Retail dynamics in Lacey also present an interesting picture. The city attracts shoppers for general merchandise and home improvement supplies, but residents often leave for auto dealerships and clothing stores, indicating a leakage in certain retail sectors. This contrast with neighboring Olympia highlights Lacey's potential for retail growth, particularly in areas where residents currently seek goods outside city limits.

Real estate developments are on the rise, particularly in the Hawkes Prairie area, which is seeing new industrial and housing projects. However, the need for retail spaces remains pressing, as new residents and workers seek local shopping options. The city is actively addressing this gap, with plans for revitalizing Midtown and reducing office vacancy rates.

As Lacey continues to evolve, city officials are engaging with stakeholders to validate these findings and explore opportunities for future development. The ongoing discussions signal a proactive approach to shaping Lacey's growth and ensuring it meets the needs of its changing population.