Is 2022 a Good Year to Start a Residential Construction Business?

These days, it’s hard to know which part of the construction industry has the most demand. The drive to build is strong, but there are a few obstacles that you should know about, as well. If you’re thinking about getting into residential construction for your contracting business, you’re in good company. Here are a few reasons to consider it for the future.

In the next few years, the sky is the limit for people who want to get started in construction. The idea of pandemic closures of entire industries is fading into the past. Additionally, investors are recognizing the importance of residential housing, and they are putting billions of dollars into it. With the decade-long labor shortage in construction, there’s a lot of availability for people who are ready to start a business and help to increase the pool of available housing in the state.

Supply Chain
There’s no doubt that the supply chain has taken the construction industry on a roller-coaster over the last couple of years. If you’ve been paying attention to it, you’ve probably noticed the cost of common materials like lumber or steel rise dramatically, only to plummet a few months later. The good news is that most of the supply chain problems that were common early in the pandemic have significantly improved. You might have to have a little more protection built into your contracts, and you may need to come up with more than one supplier for the most common materials. But otherwise, you’ve got a lot of options to make it work.

Consistent demand is a major feature of the residential construction industry at present. Millions of people in California need homes, and there simply aren’t enough existing homes to accommodate them. This is a problem that the state government was trying to address five years ago, with only some improvement since then. Although demand might shift from one area to another, depending on a few different factors, the push for new housing will probably continue several years into the future. So if you’re looking for opportunities to get your business established in residential construction, now could be a very good time.

Right now, residential construction may offer a degree of flexibility that commercial or industrial construction can’t. Experts say that there is a big change happening in the way that businesses conceive of commercial and office spaces. While there are several pandemic-related changes happening to residential construction as well, they’re not causing unpredictable levels of demand. By starting in residential construction, you may have more options to determine where you want to establish your business.

How to Get Started
Of course, in order to start a contracting business in 2022, you need the right qualifications. If you have been thinking about applying for your contractor license, now is a great time to make progress toward your goal. Being a licensed contractor isn’t just something that you must do in order to run a legal business in California. It’s also a great way to establish your credibility and prove to prospective clients that you know what you’re doing. CSLS offers a variety of expert exam preparation courses that are tailored to each exam.

This year might be one of the best times to start a business in residential construction. To learn more about what you’ll need to get started, contact CSLS today!


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About CSLS

Contractors State License Service (CSLS) is the largest school in California devoted to the Construction professional. For over 23 years, CSLS has helped its students pass the exam to become licensed contractors in the State of California, licensing more students than any other school. From our main offices in Southern California, CSLS operates over 25 locations with full-service support and classrooms. We have grown to this extent by providing quality, professional services. In comparison, this provides 7 times the number of convenient locations than the second largest contractor school. Contractors State License Services is one of the only contractor schools in the state that is run by educators, not lawyers or people mostly interested in the bonding and insurance business. Contractors State License Services formerly operated under the oversight of the State of California's Bureau for Private Post Secondary and Vocational Education. As of January 1 2010, the new Bureau for Private Postsecondary Education (BPPE) came into existence replacing the BPPVE. CSLS now operates under the provisions of the California Private Postsecondary Education Act of 2009 (CPPEA), Article 4 Section 94874(f). Our Mission is simple; We can help you pass your California Contractors License Exam. Celebrating our 25th year, CSLS has helped over 120,000 students pass the California contractor licensing exam to become licensed contractors in the State of California. Additionally, we offer complete home study and online contractor’s license programs to help you pass your California contractors license exam. CSLS offers licensing classes for all types of contractor licenses, including General Engineering Contractor, General Building Contractor, Specialty Contractor, Insulation and Acoustical Contractor, Framing and Rough Carpentry Contractor, Cabinet, Millwork and Finish Carpentry Contractor, Concrete Contractor, Drywall Contractor, Electrical Contractor, Elevator Contractor, Landscaping Contractor, Warm-Air Heating, Ventilating and Air-Conditioning Contractor, and many others. For a complete list of contractor licenses, visit and tuned for more informative posts.