Residential Building Workers See Slowing Wage Growth
The Bureau of Labor Statistics reports that average hourly earnings (AHE) for residential building workers in production and non-supervisory positions rose in August to $29.32, however, this reflects a slower wage growth than seen in 2021.
Although wages continue to rise, the annual rate of growth has slowed during the past year to 3%. The recent housing slowdown indicates employers are cautious about hiring amid a slowing economy and rising interest rates despite the high labor demand.
The rise of AHE for residential building workers was 16.8% higher than manufacturing’s AHE of $25.11, 10.8% higher than transportation and warehousing ($26.47) and 11.5% lower than mining and logging ($33.14).
Since the COVID-19 pandemic recession, AHE has risen considerably for workers. The year-over-year growth of 8% in October 2021 was the highest rate since February 2019. Due to tighter monetary policy by the Federal Reserve, the construction labor market is cooling off as economic activity slows. However, there remain 407,000 open construction jobs.
Jing Fu, NAHB’s director of forecasting and analysis, provides more information in this Eye on Housing blog post.
Latest from NAHBNow
Workforce Development | Student Chapters
Mar 02, 2026
NAHB Student Competition Success Shows Residential Construction Future is BrightFor two days at the International Builders' Show, aspiring land developers, designers and project managers from NAHB Student Chapters across the country presented thorough building proposals and fielded tough questions from an audience of construction company executives.
Material Costs
Feb 27, 2026
Senate Bill Would Exclude Building Materials from TariffsNAHB worked with Sens. Jacky Rosen (D-Nev.) and Chris Coons (D-Del.) to introduce legislation that would address the housing affordability crisis by creating an exemption process for building materials from tariffs.
Latest Economic News
Economics
Feb 27, 2026
Gains for Student Housing Construction in the Last Quarter of 2025Private fixed investment for student dormitories was up 1.5% in the last quarter of 2025, reaching a seasonally adjusted annual rate (SAAR) of $3.9 billion. This gain followed three consecutive quarterly declines before rebounding in the final two quarters of the year.
Economics
Feb 27, 2026
Price Growth for Building Materials Slows to Start the YearResidential building material prices rose at a slower rate in January, according to the latest Producer Price Index release from the Bureau of Labor Statistics. This was the first decline in the rate of price growth since April of last year. Metal products continue to experience price increases, while specific wood products are showing declines in prices.
Economics
Feb 26, 2026
Home Improvement Loan Applications Moderate as Borrower Profile Gradually AgesHome improvement activity has remained elevated in the post-pandemic period, but both the volume of loan applications and the age profile of borrowers have shifted in notable ways. Data from the Home Mortgage Disclosure Act (HMDA), analyzed by NAHB, show that total home improvement loan applications have eased from their recent post-pandemic peak, and the distribution of borrowers across age groups has gradually tilted older.