Southwest

Northern California also accounts for a large share of the region’s spending, mainly centered around the Bay Area.

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 moving away from the Bay Area early in the 2020s. The construction market here 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 the Central Valley or Sacramento.

Elsewhere in the region, cities like Las Vegas and Phoenix have been struggling to balance the needs of their residents with what their environments can provide. The region’s arid climate means that there simply aren’t enough resources to support the number of people living there, prompting sustainability mandates and court battles over water rights. The same climate, however, has made it an ideal location for certain kinds of manufacturing – particularly semiconductor manufacturing. This has attracted companies flush with federal money, resulting in new facilities being built near Phoenix, Las Vegas, and Salt Lake City. Reno, Nevada has also gained recognition as an affordable manufacturing hub, conveniently close to the tech centers on the other side of the Sierras.

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