World War II changed the town of San Pablo forever. In just a few years, the population boomed from 2,000 to 25,000 people, due to the jobs at the Richmond Shipyard. People came from all over the United States to get jobs as welders. Many African Americans came from the South, and established the first sizable black community. Housing was put up as quickly as possible to accommodate these new workers. Many of these tiny homes on small lots that characterize San Pablo were built during the war. Not all of them were intended to be permanent buildings, and had shoddy construction.
Lighthouse Inn San Pablo kept up its reputation as a party town - nightclubs and dance halls featuring country swing bands were popular among the young shipyard workers. The clubs were often open 24 hours a day to accommodate all three work shifts at the shipyard.