After sprawling across a sizable chunk of Southern California, San Diego is finally reinvesting in its downtown.

Many of the new residential developments that have been given the green light are mixed-density projects close to downtown. This is mostly due to necessity and is common in many cities in Southern California. Thanks to decades of zoning that only allows single-family developments, almost all usable land has already been built on. The only way for cities to accommodate their growing population is to build midrise residential projects or the now-ubiquitous five-over-one apartment block. San Diego is one of the few cities that is embracing this trend wholeheartedly.

The city’s construction market saw steady growth throughout the last two years, as it slowly but surely works its way out of a steep decline in 2019. It should continue to grow through the 2020s, and the construction labor force has grown steadily in anticipation. The city’s unemployment rate has been declining as well, although it still has quite a bit of distance to cover. Labor costs should stay relatively constant, as labor and volume have increased in similar proportions.

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* Other structures include religious buildings, amusement, government communications, and public recreation projects.
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