This trend has been following the overall economy’s growth, that has facilitated both government spending as well as private development in the downtown region of Sacramento. While the Golden 1 Arena has transformed downtown with significant private real estate investment and development, public spending on state work is expanding. The State of California is investing in several large construction projects and office buildings, totaling over $2B+ in project costs. State infrastructure projects have surged as a result of state budget coffers having strong budgets. Highways and bridge projects have been increasing due to the State of California’s passing of transportation tax. Residential construction has seen sizable growth as a result of steady housing demand and high rental costs. The largest limiting factor to construction and costs is the limited availability of construction trade labor. This shortage of labor has spurred construction escalation, due to lack of contractor labor competition. Residential, institutional, and healthcare, and education sectors will lead the growth for the next two years. Residential will grow at an average rate of 9.9% annually while healthcare construction is expected to increase at a 5.7% average annual rate over the next two years.