The residential sector has emerged as a key driver of Sacramento’s construction market.
The city benefits from a number of factors: it is California’s capital city and enjoys an abundance of government jobs. It is close enough to Silicon Valley to enjoy the economic benefits, but far enough from it that it is still more affordable. This has caused a rapid influx of new residents over the last ten years, briefly turning it into the fastest growing city in California.
City officials have taken a proactive approach to accommodating these new residents – hence the large role of the residential sector – but have been met with mixed success. The construction market has been slowly adapting Sacramento’s turn away from manufacturing and logistics and towards healthcare and tech. Of the ten largest projects in the market, four are healthcare and four are office and mixed-use.