How will the Drought Impact California’s Construction Industry?

Perhaps no issue has been more pertinent to Californians in recent times than the increasingly troubling drought, the worst in over a millennium, which is already beginning to affect residents in real ways. It appears that the future of the state will be determined by the response to the dwindling resource. The drought may be a major factor in how things shape up for the state of California in coming years and beyond. It’s worth it to take a look at how the current conditions are intersecting with residential, commercial and public construction in California and what the implications are for the state’s changing landscape.

A discussion about dealing with the water shortage can’t truly take place without getting clarity on the issue. It has been pointed out that by far the largest amount of water is consumed by the state’s agriculture, which has also been the hardest hit by the drought, with 80% of the resource being used by farmers.

Due to the state’s water rights, which put some at an advantage, farmers are already struggling, and the future of agriculture is uncertain. Some believe that changes to agricultural land are inevitable, either in the form of more suburban developments, or in the construction of the High Speed Rail, which may lead to increased urbanization.

For California contractors and developers, the drought may mean less suburban sprawl and more mixed-use buildings, or other water-saving considerations. For example, Orange County is currently dealing with a housing shortage for its growing population, but the drought presents difficulties for new home construction. Officials claim that water efficiency is one solution to new construction during a time when water conservation is imperative:

“Water officials and environmentalists say development can occur with improved conservation…For example, developments now use water-conserving fixtures and landscaping. The Santa Margarita Water District is partnering with developer Rancho Mission Viejo to capture urban runoff for irrigation.”

There may also be a growing need for construction projects that will serve water conservation goals, such as desalination.

Contractors and homeowners are already seeing long term effects on the horizon, as local water districts consider restrictions on emptying swimming pools, as well as outright bans on the construction of new pools, while drought tolerant landscaping may replace green lawns in many California neighborhoods.  It seems clear that Californians will have to adapt to drought conditions in order for housing, construction and the economy to thrive.