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Bay Area Construction in 2022 – Part 1

The construction industry is one of the most important industries in the world. Without buildings, bridges, and other structures to house our businesses, schools and homes there would be no economy. In fact, as a country we spend more money on construction than any other nation. So it’s not surprising that people from all walks of life are drawn to this field for their careers.

Construction Industry Overview

The construction industry has always been one of the most important industries in the world, but it might surprise you that more money is spent on building things than any other country. With the highest population in the United States (by far), it’s no surprise that California has more construction activity than any other state.

And with the San Francisco Bay Area having one of the highest population densities in the nation, this fact is only more prevalent! This area includes large populations like San Jose and San Mateo.

Bay area housing construction

Rising home prices have made the housing market extremely competitive. As a result, many people are unable to purchase their first home because they just don’t have enough saved for a down payment or qualify for a loan. Although this has been a major problem in California recently, there have been signs that the housing market is starting to stabilize again. In fact, although there was another increase in home prices in 2020, they have started to level off.

Despite this small victory for housing construction companies the lack of inventory has been huge. In fact, real estate agents have been reporting less than a 1-month supply which is down from 4 months the year before. But with median home prices at $722,000 it’s hard for someone to find a good deal and home builders are not building homes fast enough.

Bay area bathroom and kitchen remodeling

The Bay Area is a beautiful place to live and work—but it has its problems too. The new development taxes are some of the highest in the nation, which means that people spend a lot more building new homes. One way people combat this added tax is by remodeling their homes so their project is taxed differently.

In fact, according to local sources, most homeowners that remodel are spending more than $145,000 on high-end kitchen and bathroom remodeling! This is an increase year-over-year since 2017. There has also been a huge increase in construction loans as interest rates have dropped significantly across the board.

Although the number of renovations have gone down in other places over the years, it is still a thriving business. The average cost of a kitchen renovation in San Francisco is about $75,000 while most large projects cost over $100,000. If you want to tackle a small bathroom renovation that might cost between $35-70k depending on the size and quality of materials. Be sure to check out our article on bathroom remodeling for more insight into that industry.

Bay area construction companies

The construction industry is made up of many companies with different specialties. There are general contractors, specialty trade contractors, building material manufacturers and more. As you might already know the Bay Area is home to many major corporations including Google, Apple, Facebook and more.

These companies—and others like them—drive a lot of business in the construction industry too. They hire construction managers to lay out their campuses or build new structures for them.

Some of the biggest Bay Area commercial contractors include Swinerton, Webcor and Skanska. Another major player is Tutor Perini who has built several high-profile projects including building some parts of the new San Francisco airport. The high rise construction industry is thriving in this area as more and more people are moving to cities

South bay construction companies

Although the south bay area is known for its tech companies like Google, LinkedIn and others there are still many construction opportunities here as well. These companies need to expand their facilities constantly to accommodate more workers. Although they might not always be building structures from scratch, these companies spend a lot of money on renovations and updates which means plenty of work for local construction companies.

The south bay area is home to many exciting construction projects including the new Levi’s Stadium in Santa Clara, California. Another great project is the new Apple Park in Cupertino which will double its parking capacity by adding 14,200 spaces! There are several other major projects requiring contractors throughout Silicon Valley.  

To make things easier for our readers, we’ve split this into two articles. Click here to read Part 2 of Construction in the Bay Area 2022.

Ready to start a construction project?

If you’re looking for a reliable contractor to help build your next residential construction project, we recommend getting a bid from Hyders Construction Inc. Our team will provide competitive bids and prompt service that is sure to meet your needs. From kitchen remodels to large-scale new home projects, our experts have the experience needed to get the job done right!

To learn more about how we can partner with you on your next building project please contact us today or email (click here to show email). We look forward to hearing from you soon!

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