The Residential Building Construction industry in California is expected to grow over the five years to 2017. This projected growth is largely attributed to a rapid increase in home price values. In addition, multifamily building construction companies have benefited from falling rental vacancy rates, which has spurred growth in demand for new multifamily structures. Over the five years to 2022, revenue is expect to continue to increase, albeit at a slower pace than during the previous five-year period. However, sales growth will be largely driven by low rental vacancy rates, which will further drive up demand for multifamily construction projects. Foreign investment trends will also contribute to the rise in demand in residential construction projects...read more.

Industry Statistics & Market Size
Revenue
$37bn
Annual Growth 12-17
3.4%
Forecast Growth 17-22
Profit
Employment
93,086
Businesses
20,187
What Our Customers Say

Industry Threats & Opportunities

  • Demand stability and low barriers to entry will encourage new players to enter the market
  • Favorable demographic trends, a rise in job availability and reduced single-family home affordability fueled demand for multifamily rental units
  • As home prices in California continue to rise, demand for renovation and addition work will increase
  • Additional Insights for the Residential Building Construction in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Residential Building Construction in California Industry are

  • Effective product promotion
  • Having a high prior success rate (including completed prior contracts)
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Value of Residential Construction in California and Home Price Index in California in the Residential Building Construction in California industry impact industry performance..

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    What is the Residential Building Construction in California Industry?

    Industry operators primarily construct single-family homes, where units are separated by ground-to-roof walls and have no units above or below. The industry also includes remodeling of houses and other residential buildings. Industry operators are general contractors, design-build companies and single-family construction management companies acting as general contractors and builders. This report excludes work performed by nonemployers.

    Industry Products
  • Single-family building construction
  • Multifamily building construction
  • Industry Activities
  • Residential homebuilding and general contracting (i.e. detached units, apartments, townhouses, military housing)
  • Managing residential housing construction
  • Low-income single-family housing construction
  • Managing residential remodeling construction
  • Handyman construction for residential buildings
  • Similar Industries
  • Land Development
  • Apartment Rental
  • Architects
  • Engineering Services
  • Home Builders in Illinois
  • Apartment & Condominium Construction in Illinois
  • Remodeling in Illinois
  • Home Builders in Texas
  • Home Builders in Florida
  • Apartment & Condominium Construction in Florida
  • Remodeling in Florida
  • Home Builders in Massachusetts
  • Apartment & Condominium Construction in Massachusetts
  • Remodeling in Massachusetts
  • Home Builders in Ohio
  • Remodeling in Ohio
  • Apartment & Condominium Construction in Ohio
  • Home Builders in Pennsylvania
  • Apartment & Condominium Construction in Pennsylvania
  • Remodeling in Pennsylvania
  • Home Builders in New Jersey
  • Apartment & Condominium Construction in New Jersey
  • Remodeling in New Jersey
  • Home Builders in Georgia
  • Apartment & Condominium Construction in Georgia
  • Remodeling in Georgia
  • Home Builders in Michigan
  • Apartment & Condominium Construction in Michigan
  • Remodeling in Michigan
  • Home Builders in Wisconsin
  • Apartment & Condominium Construction in Wisconsin
  • Remodeling in Wisconsin
  • Home Builders in Washington
  • Apartment & Condominium Construction in Washington
  • Remodeling in Washington
  • Home Builders in Virginia
  • Apartment & Condominium Construction in Virginia
  • Remodeling in Virginia
  • Home Builders in Tennessee
  • Apartment & Condominium Construction in Tennessee
  • Remodeling in Tennessee
  • Home Builders in Missouri
  • Apartment & Condominium Construction in Missouri
  • Remodeling in Missouri
  • Home Builders in North Carolina
  • Apartment & Condominium Construction in North Carolina
  • Remodeling in North Carolina
  • Home Builders in Minnesota
  • Apartment & Condominium Construction in Minnesota
  • Remodeling in Minnesota
  • Home Builders in Maryland
  • Apartment & Condominium Construction in Maryland
  • Remodeling in Maryland
  • Home Builders in Colorado
  • Apartment & Condominium Construction in Colorado
  • Remodeling in Colorado
  • Apartment & Condominium Construction in New York
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of Residential Construction in California
  • Home Price Index in California
  • Unemployment Rate in California
  • Rental vacancy rates

  • Current Performance
  • Strong residential property appreciation
  • Rental demand on the rise
  • Profit expansion
  • Chart: Revenue Growth

  • Industry Outlook
  • Increase in existing home inventories
  • Profit expansion
  • Table: Residential Building Construction in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Residential Building Construction in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Commercial Banking
  • Real Estate Investment Trusts
  • Apartment Rental
  • Community Housing & Homeless Shelters
  • Colleges & Universities

  • Key Selling Industries
  • Architects in California
  • Construction & Mining Equipment Wholesaling in California
  • Electricians in California
  • Lumber Wholesaling in California
  • Manufactured Home Wholesaling
  • Ready-Mix Concrete Manufacturing
  • Real Estate Loans & Collateralized Debt in California
  • Roofing, Siding & Insulation Wholesaling
  • Stone, Concrete & Clay Wholesaling
  • Tool & Hardware Wholesaling

  • Products & Services
  • Single-family building construction
  • Multifamily building construction
  • Chart: Residential Building Construction in California Industry Products and Services Segmentation

  • Major Markets
  • Development market
  • Homebuilding market
  • Investment market
  • Chart: Major Market Segmentation for the Residential Building Construction in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Residential Building Construction in California

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Residential Building Construction in California Industry

  • AECOM AvalonBay Communities Inc.Clark Construction Group LLCD.R. Horton, IncKB HomeLend Lease Corporation Limited Swinerton Inc.
  • Table: AECOM - financial performance
  • Table: AvalonBay Communities Inc. - financial performance
  • Table: Clark Construction Group LLC - financial performance
  • Table: D.R. Horton, Inc - financial performance
  • Table: KB Home - financial performance
  • Table: Lend Lease Corporation Limited - financial performance
  • Table: Swinerton Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Residential Building Construction in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Residential Building Construction in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Home Price Index in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Developer
  • An enterprise that prepares a real estate site for residential or commercial use, raising capital, securing zoning approvals and hiring contractors to design, construct and develop property.
  • General Contractor
  • An individual or company that manages the construction of a structure for a property owner or developer. A general contractor may retain its own labor force or use subcontractors for projects.
  • Housing Starts
  • The number of new homes under construction during a specified period of time and a key economic indicator of the health of the housing market.
  • Why buy this report?

    The Residential Building Construction in California Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Residential Building Construction in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Residential Building Construction in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Residential Building Construction in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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