Why California Construction Business is Booming in 2024

Contractors are keeping busy this year. All over California, the construction industry is seeing a significant boom for a variety of reasons.

In this article, we break down the key factors responsible for the current upswing in job creation and economic development that the California construction business is experiencing in 2024.

Infrastructure Investment

The state government is putting a lot into improving transportation, public facility upgrades, and updating water and energy infrastructure right now.

A recent report tells us that California has had $32.7 billion announced in Infrastructure Investment and Jobs Act (IIJA) funding. Of this amount, $24.18 billion is dedicated to transportation-related projects – so that could be a good in for civil engineers and public works contractors.

You can keep yourself updated about ongoing transportation projects in California on the California Department of Transportation website. The Office of Governor Gavin Newsom also launched Build.ca.gov to help you track exactly how money is being used for building projects around the state.

It might also be worth mentioning that there are government incentives promoting growth in construction and development.

For instance, construction projects supporting affordable housing, renewable energy goals, and earthquake-resistant builds — since these projects are good for Californians state-wide, so they help companies qualify for tax credits, grants, and subsidies.

Housing Demand

California is just one of those attractive places that people want to call home.

The state has long grappled with a housing shortage, but in 2024 we’re seeing developers go full-tilt in their efforts to build new apartment buildings, condos, and single-family homes.

Over five thousand homes were just fast-tracked by an affordable housing initiative across 10 statewide projects.

You might have seen our post about ADU builds and noticed how homeowners are adding even more residential space to properties where they live. That’s just another indication of how busy construction is in California right now.

Green Building Initiatives

California frequently encourages builders to help the state reduce its environmental footprint and there’s no sign of that stopping in 2024. 2023 was the hottest year on record, underlining the reality that green construction is more important than ever – which is a great opportunity for contractors who know their environmentally-conscious construction.

With the growing emphasis on sustainable and energy-efficient design and construction, certain government incentives and mandates lead to upgrades, renovations, and other construction projects that promote a greener California.

Advancements in Tech

Based on what we’ve covered in our article AI and Automation Construction trends and what you’ve no doubt observed in the field, you see that Building Information Modeling (BIM), drones, and automation increase efficiency and productivity in construction.

The more construction companies adapt to emerging tech, the higher the demand for their services – and the future is only going to demand you stay up-to-date with current tech in order to serve your customers appropriately.

Consistent Contractors Like You

Just as the construction business in California is growing at a steady pace, so is the number of new contractor licenses being issued.

If you’re looking for immediate, to-the-minute news about infrastructure updates, new housing development, green initiatives, and new tech, one of your best sources will be your peers in the field.

This flourishing industry relies on consistent, knowledgeable contractors like you who are really invested in construction work and how the landscape of the business is changing year to year. So keep yourself updated and check out some construction events in 2024.

Get yourself to some expos and industry conferences. You’ll see how all the factors we discussed in this post create new jobs and amp up construction activity statewide.

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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 www.MakeMeAContractor.com and tuned for more informative posts.