5 Key Drivers Shaping California’s Construction Industry Over the Next Decade
California’s construction sector is entering a critical phase of growth and innovation. Between population shifts, climate goals, housing shortages, and digital transformation, the next ten years will reshape how the Golden State builds and develops.
Here are five of the biggest factors likely to influence California’s construction landscape from 2025 through 2035 — along with real-world examples already paving the way.
1. Decarbonization and Green Building Standards
California has long been a leader in sustainable development. With ambitious state targets to reach carbon neutrality by 2045, the construction sector is being pushed to adopt greener practices at every stage.
Example: California Green Building Standards Code (CALGreen)
CALGreen sets mandatory requirements for new construction, covering energy efficiency, water conservation, air quality, and waste reduction.
Example: The California Academy of Sciences, San Francisco
One of the greenest museums in the world, this project showcases how sustainable design can meet both functional and environmental goals.
The next decade will see greater use of low-carbon materials, net-zero homes, solar integration, and energy-positive commercial buildings — all driven by policy and public demand.
2. Construction Technology and Automation
As in the rest of the U.S., the adoption of construction technology in California is accelerating. Tech is now a key tool for tackling labor shortages, improving project timelines, and reducing cost overruns.
Example: ICON’s 3D-printed homes
This Austin-based startup is working with California municipalities to explore affordable, 3D-printed housing solutions — a game-changer in high-cost areas.
Example: Trimble’s Mixed Reality for Construction (used in Silicon Valley)
Contractors in California are increasingly using AR/VR, drone surveying, robotics, and AI-driven project planning to increase accuracy and reduce on-site errors.
Expect wider adoption of BIM, digital twins, prefabrication, and site automation across large-scale infrastructure and residential projects.
3. Skilled Labor Shortages and Workforce Development
The construction industry in California continues to face a serious labor crunch. As older tradespeople retire and demand rises, attracting and training new talent is essential.
Example: Build California (by AGC of California)
This statewide initiative promotes construction careers to students, veterans, and career-changers through outreach, resources, and job pathway programs.
Example: California Apprenticeship Initiative
Supported by community colleges and unions, this program helps develop skills pipelines into electrical, plumbing, carpentry, and green construction trades.
Diversity, training access, and tech-savviness will be the cornerstones of California’s next-generation construction workforce.
4. Infrastructure Investment and Housing Demand
California’s housing crisis and transportation needs are driving massive infrastructure spending. State and federal investment is pouring into roads, transit, water systems, and affordable housing.
Example: California High-Speed Rail
America’s first true high-speed rail system is under construction in the Central Valley, promising regional connectivity and thousands of construction jobs.
Example: SB 9 and SB 10 Housing Laws
These statewide laws allow for higher-density residential construction in urban and suburban areas — a major shift in zoning and development potential.
Example: LA Metro Expansion Projects
Billions are being invested in light rail, subway, and bus rapid transit to support Los Angeles’ growing population and climate targets.
Urban infill, modular housing, and mixed-use developments will see major growth as cities push to increase supply and sustainability.
5. Regulatory Compliance and Safety Reform
California’s construction codes are among the strictest in the U.S., and the regulatory landscape is evolving rapidly — especially around fire safety, seismic resilience, and worker protection.
Example: Title 24 Energy Code Updates
These state-mandated energy efficiency standards continue to shape how buildings are designed, especially around lighting, HVAC, and insulation.
Example: Wildfire-Resistant Construction Guidelines
With wildfires becoming more frequent, new legislation and code requirements focus on fire-resistant materials, defensible space, and community design.
Example: SB 721 and SB 326 (Balcony Inspection Laws)
New rules require regular inspection and repair of exterior elevated elements on multifamily buildings — a direct response to safety concerns.
Contractors and developers must stay on top of evolving codes to ensure compliance and avoid costly delays or penalties.
At Approach Talent, we understand the evolving needs of California’s construction sector. Whether you’re scaling up for a major infrastructure project, navigating skills shortages, or seeking talent with experience in sustainable building practices and cutting-edge tech, we’re here to help. Our specialist recruiters work closely with contractors, developers, and public agencies across the U.S. to deliver reliable, pre-vetted construction professionals — from skilled trades to site supervisors and project managers. As the industry moves into this next phase of growth, Approach Talent is your recruitment partner for building teams that deliver.