Northwest

The Northwest appears to be reaping some benefits from events further south in California where more than 350 tech companies have relocated away from the Bay Area.

Most of these have relocated to Texas (which we will discuss later in this report), but a sizable portion of them have moved to Washington, Oregon, and Colorado. These locations enjoy an educated workforce and world-class universities, but don’t have as high a cost of living and barriers to development. This has spilled over into smaller cities in the region, which have become quite popular with remote workers. Bend, Aspen, and Tacoma have seen an influx of new residents.

With all these new residents comes a need for new construction. The construction market here is primarily residential – homes account for somewhere between 60 and 80% of the market in a given year, with the region seemingly unable to build fast enough. Alongside these projects are new commercial spaces and infrastructure developments – and recently data centers and microchip factories subsidized by the CHIPS Act. Infrastructure spending is also robust here, with the second largest project being a carbon removal plant in Wyoming. Mixed-use spaces and redevelopments are also making inroads in the market. These are trends that we expect to continue for the foreseeable future.

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

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