California Construction Economy for 2017

California’s Construction Economy is Booming

Homes are being sold for a premium. Jobs are being added. People are flocking to the Golden State. What is in store for the California construction industry in 2017? This article will talk about the economic environment and what the construction sector is likely to look like for 2017.

2016 was a year of uncertainty as the United States elected a new President. 2017 seems to be a year of consumer confidence and job growth. The trust in the job market has many Americans looking for new careers and new positions. The movement in the employment sector has a direct link to buyer confidence in the real estate industry.

In 2017, thousands of new jobs will be added to the economy. Job growth is only one indicator of the construction industry, however. California is expected to maintain a healthy commercial and institutional real estate environment as they will be receiving state and local bond measures to ensure their housing stability. The reduction of contractor bond pricing in California has also stimulated new growth for the industry. To find out how much a bond costs, check with a licensed surety professional.

New businesses and schools being built will mean more apartments and houses requirements.

Falling oil prices have meant close to zero inflation for the entire country. California is experiencing slightly higher rates of inflation because of how large real estate plays in the local economy. Interest rates on real estate and construction loans may rise slightly, but not to a devastating level. Californians are expected to see higher salaries this year and can demand higher wages as the global economy strengthens. The technology industry will also gain more momentum along with this expansion.

To make things even more exciting, Donald Trump has promised to spend trillions of dollars over the next decade on American infrastructure. This means that the country’s deficit will increase, but that there will be plenty of construction projects in store in California. New bridges, interstates, and highway construction will be sure to grow the economy like never before. There will need to be people hired to make this happen.

Employment rates in California have continued to rise, and there is a shortage of housing. Restrictions on policy making and planning committees have eased up, making it easier than ever to build in California. This will hopefully create enough housing to provide for all of the new people residing in California. Taking that into account plus the increasing investments in commercial and institutional real estate, California is poised for growth in the construction industry in 2017.

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