LA’s 2026 Growth Drivers: Construction
While the 2025 wildfires are definitely playing a strong role in shaping California’s infrastructure investments, they are not the sole reason why the region’s construction industry is on the rise. The reality is that the Los Angeles region has been struggling for years to find enough homes for all those choosing to live within its jurisdiction.
Fortunately, LA’s Center of Excellence for Labor Market Research has crunched the numbers and presents a comprehensive overview of all the work being done (and the work that still needs doing) as the LA Basin continues its recovery from the flames and looks forward to hosting the 2028 Summer Olympics.
Housing Headaches for Generations
The 2025 wildfires were unlike any disaster LA had previously experienced. Over 16,000 structures were destroyed, which left great swaths of open, scarred landscapes gaping in the sun. Approximately one year later, fewer than 10% of the homes had been rebuilt, and commercial construction progress is also still lagging behind. And housing remains equally scarce in areas not affected by the flames; well before the fires, thousands of Los Angelenos were unable to find an affordable house to buy, which made the rental market soar and prices climb out of range for many potential tenants and homeowners.
There are many reasons for the housing shortage, but perhaps the most significant influence was the failure of analysts to properly assess the long-term impacts of the 2008 ‘housing bubble burst.’ In the years leading up to that collapse, activities in the home lending sector had drastically changed how mortgages were managed. Lending standards were relaxed, and many people with less-than-stellar credit histories were permitted to sign up for huge home loans, while paying only interest for the first five years. Then, at the five-year mark, when their incomes failed to cover the new level of debt they had assumed, most were compelled to lose their homes to foreclosure.
Making matters worse, after the crash, potential home buyers often found themselves left out of the purchase process by new, much more stringent lending rules and banking requirements. While industry watchdogs and rule-makers were attempting to prevent another ‘housing bubble’ from forming, they were also interfering with the home-buying dreams of thousands of people born to Generation X. The long-term result was that many fewer homes were built between 2008 and 2020 than were actually needed, which jacked up the price of those that were available, and forced hundreds of thousands into long-term rental units.
The plans for recovery after the 2025 fires include addressing these housing stock gaps as well. Accordingly, LA’s construction industries are booming, creating both jobs for those who want to work in this sector and houses for those who want to feel the joy of home ownership.
Construction Leads the Way
Analysts looking at the charred remains of the Eaton and Pacific Palisades fires have assessed the workforce demand to rebuild those neighborhoods back to their previous state, with a common conclusion being, “We need more workers.” Up to as many as 45,000 new workers, according to LA County Forward, a publication by LA County designed to explain the region’s rebuild needs and the government’s plan to achieve those goals. With an estimate of ~3.5 thousand workers per $1 billion invested in construction projects, just the fire-affected neighborhoods will require a massive expansion of the labor force to achieve a full, community-wide rebuild.
Note, too, that the additional workers needed to rebuild the fire-damaged neighborhoods are NOT going to alleviate the pre-existing housing shortage. In addition to the ~16,000 homes and businesses lost, LA County intends to add more than 450,000 new housing units in the area by October 2029, so its forecast for future construction workers is much larger than those needed in the burned communities. To attain this goal, LA County is expanding its workforce training opportunities across its 88 cities and 4,083 square miles, and is accessing all its resources to ensure success. Among those resources: the County’s own Department of Economic Opportunity, America’s Job Centers of California, the locally based Economic and Workforce Development Boards and agencies, and, of course, its 19 community colleges, including Pasadena City College.
Pasadena City College Gears Up for Construction Careers
The fact that the Eaton fire burned less than five miles from the Pasadena City College (PCC) campus is just one driver of the school’s recent ramp-up in construction-related courses, programs, and facilities. On the first anniversary of the fires’ ignition, PCC launched its newest project, a state-of-the-art Center for Constructive Arts Center. The 55,000-square-foot facility leverages the design capabilities of its partners, including the Harbor Freight Tools for Schools group, to provide cutting-edge training services for a myriad of construction jobs. Not constrained to the building trades alone, the new school will also address and provide learning opportunities in environmental fields such as restoration and sustainability trades, as well as green construction technologies.
Colloquially known as the ‘Construction Trades Lab (CTL),’ the new resource responds to the needs of both the community and the college. Yes, the community will need the workforce to recover from the disastrous 2025 conflagrations, but the school needs to offer access to well-paying jobs and careers. The new facility responds to both those demands. Funding for the CTL is coming from a variety of sources:
- The Walter Family Foundation has donated $2.8 million to connect two of its critical causes: social equity and conservation.
- The California Community Colleges Chancellor’s Office (CCCCO) also contributed $500,000 to the Lab, part of its $1.5 million designation to schools to defray costs incurred during the fire calamity.
- The Ballmer Foundation, the United Way of Greater Los Angeles, and the PCC Foundation all added resources and support.
Additionally, many of the area’s non-profit groups, trade councils, and elected representatives have voiced their enthusiasm for the project.
For PCC, the CTL is just one more effort to address learners’ needs by connecting them to current events and existing career options. Just a few months after the firefighters quelled the flames, PCC launched its Summer Construction Careers Program, a paid training program offering hands-on classes in welding, electrical work, and building inspection, among many other course options. As part of its ‘Skills to Rebuild’ initiative, PCC exposed regional 11th- and 12th-graders to the many occupations in the building trades through a community-based partnership with retailers, career professionals, and industry leaders. Industry-recognized credentials assured the learners that their summer wasn’t wasted and that their future could be secured within the construction industry.
The 2025 wildfires certainly triggered LA’s intense effort to rebuild its infrastructure and neighborhoods. The need for well-paying jobs and careers and affordable housing, however, will keep the momentum rolling forward for years after the two burned communities are back up and functioning fully.


















