T
he Bay Area's construction industry is bracing for a significant disruption due to the recent wildfires in Los Angeles County. An estimated 12,000 structures were destroyed, and building professionals expect years of challenges ahead. The fires will draw contractors and workers to the affected areas, exacerbating an already severe labor shortage in the region.

    As a result, building costs are expected to soar across California, making it even more difficult for builders to find enough skilled workers. Shawn Ajdari, owner of AYA Homes, notes that the devastation will create lucrative jobs in fire zones, drawing contractors away from other areas. This could lead to a shortage of skilled laborers in the Bay Area and surrounding regions.

    California's laws require contractor licensing, limiting out-of-state contractors' ability to work in the state. Matt Everson, co-owner of BW Builder, recalls a similar shortage after the 2017 Tubbs Fire, which led to a doubling of labor prices and a 20% increase in building costs for homeowners. He expects a similar scenario to play out due to the Los Angeles County wildfires.

    A surge in demand for materials, labor, and services after a natural disaster typically increases costs by 15-30%. Allied Framers' Jesse Carter is monitoring the situation closely, as it may impact his firm's ability to source lumber. With years of disruption expected, builders are urging clients to prepare for potential price hikes and shortages.