Western Bluebirds nest in cavities—holes in trees or nest boxes. They aren't equipped to dig out their own cavities so they rely on abandoned woodpecker holes or other processes to build their nest. This is one reason to leave dead trees or snags standing in the forest. 

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BONUS FACT:

Pileated Woodpeckers will use one nest cavity a year then abandon it leaving it for our friends the Western Bluebird, Chickadees or other nesting creatures.

The females do almost all of the nest building. Starting with gathering grasses, straw, pine needles, moss, other plant fibers, and fur from the area and carrying it to the nest. Next She lines the nest with her materials.

Western Bluebird pairs choose their nest location together; 2–14% of pairs have helpers at the nest. Helpers are usually juveniles from a previous brood, although adults may also help nesting pairs if they do not have their own territory or if their own nest has failed.

Western Bluebirds can nest up to three times per season.