southern california

In Los Angeles, a major driver of activity is the ongoing rebuilding effort in the wake of the wildfires that devastated parts of the city earlier this year.

Contractors in Los Angeles usually build around 8,000 houses each year, meaning that rebuilding the 12,000 homes lost in the fires will likely take several years. On the commercial side, private investors remain cautious given the economic volatility surrounding the tariff situation. With the City of Angels poised to host back-to-back-to-back major events – the 2026 World Cup, the 2027 Super Bowl, and the 2028 Olympics – construction activity is not booming with investment like they saw a decade ago. Rather, in preparations for these events, all major infrastructure to support these events are in place, and numerous projects are underway to improve areas of the city in the form of street revitalization projects, housing, utility improvements and other public places.

San Diego, meanwhile, is dealing with similar trends as other major cities. It is not building housing fast enough to keep pace with demand; just over half of the 15,000 multi-family units needed to meet demand are in construction, while its office sector has failed to rebound from the rise of remote work. Office vacancies sat at just under 13% at the end of 2024, with the market shifting to smaller, higher-quality spaces. California’s government has stepped in to streamline the permitting process, but this has so far not been enough to keep costs from rising.

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