Abstract | This paper evaluates the potential of self-centering moment-resisting frames (SCMRFs) with viscous dampers to reduce the economic losses in steel buildings due to strong earthquakes. The evaluation is based on the comparison of different designs of a prototype steel building using as lateral-load resisting system: 1) conventional steel moment resisting frames (MRFs); 2) MRFs with viscous dampers; 3) SC-MRFs; and 4) SC-MRFs with viscous dampers. The economic losses of these four design cases are estimated by developing vulnerability functions according to the ATC-58 methodology. The influence of residual storey drifts on economic losses is examined, by accounting for the possibility of having to demolish a building as a result of excessive residual storey drifts. Results highlight the importance of considering residual story drifts as a demand parameter to economic loss estimation; and show that the use of viscous dampers significantly improves the building’s performance for both SC-MRF and MRF, resulting in lower repair cost.