bay area

Construction in the Bay Area has seen an uptick in the pre-design phase.

Between its high cost of living, turmoil in its key industries of technology and finance, and dwindling supply of buildable land, both residents and businesses began to relocate early in the 2020s. The recovery from last year’s market crash has been slow, with the tech sector expected to take some time to stabilize, which should help make the area more affordable.

New projects have begun to enter the pipeline again, with the understanding that costs will be comparatively lower once they finally break ground. The number of billings has increased, while the number of new contracts has not changed significantly – implying that most of this work is still in the design phase.

The Bay Area’s construction market remains a buyers’ market, with more of a supply for labor than demand. While the region added to its labor force since 2020, many of those workers have joined the tech companies and relocated to places like Austin, Phoenix, Las Vegas, or Portland. The housing shortage remains, although steps have been made to encourage new residential construction. Still, it is not unheard of for people to commute from Santa Cruz or Sacramento.

* Other structures include religious buildings, amusement, government communications, and public recreation projects.