New HBI Report Shows an Increase in Demand for Construction Labor
Additional skilled construction workers will be needed to reduce the nation's housing deficit during the second part of this decade, a shortfall NAHB estimates to total 1.5 million homes. The latest Construction Labor Market Report from the Home Builders Institute (HBI) provides an overview of the current state of the nation’s construction labor market.
Key findings in the report include:
- There are currently 8.2 million payroll construction workers.
- The estimated, required amount of construction worker hiring is approximately 723,000 per year, according to NAHB analysis of BLS data and projections.
- The number of open construction sector jobs was above 400,000 at the start of the year. The count fell in March.
- Average hourly wages in the overall construction industry have increased 5% over the last year, with average wage levels exceeding national private sector averages.
- Women make up a growing share of the construction employment, reaching 10.9% in 2022. This is a noticeable increase from 9.1% in 2017 and just below the record high share of 11% recorded in 2021.
NAHB Chief Economist Dr. Robert Dietz and HBI CEO Ed Brady discuss the report’s key findings, trends and possible solutions for the labor shortage in an HBI Podcast. To learn more about the residential construction labor market, view the report.
Latest from NAHBNow
Apr 03, 2025
100 Builders Wanted: Join the Mission. Build for Profit. Build a Legacy.For years, Sound Capital has been dedicated to empowering builders to handle more projects, accelerate their pace, and innovate effectively. That is why Sound Capital is encouraging builders to see why 95% of its clients are repeat customers.
Apr 03, 2025
In Win for NAHB, Canadian Lumber Exempt from Trump’s Global Reciprocal TariffsThe tariff exceptions for Canada and Mexico amount to a major win for NAHB, but because of the complexity of the tariffs, builders should expect more volatility in pricing while companies work to understand and adjust to these new tariffs. NAHB will continue to advocate for lower tariffs on lumber and all other all building materials.
Latest Economic News
Apr 01, 2025
Private Residential Construction Spending Rises in FebruaryPrivate residential construction spending increased by 1.3% in February, rebounding from a 1.2% dip in January. The growth was largely driven by higher spending on single-family construction and residential improvements. On a year-over-year basis, the February report showed a 1.6% gain, indicating a modest growth in private residential construction spending during market uncertainties.
Apr 01, 2025
Soft Job Openings Estimate for ConstructionAfter a period of slowing associated with declines for some elements of the residential construction industry, the count of open construction sector jobs remained lower than a year ago, per the February Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).
Mar 31, 2025
Affordability Pyramid Shows 94 Million Households Cannot Buy a $400,000 HomeNAHB recently released its 2025 Priced-Out Analysis, highlighting the housing affordability challenge. While previous posts discussed the impacts of rising home prices and interest rates on affordability, this post focuses on the related U.S. housing affordability pyramid. The pyramid reveals that 70% of households (94 million) cannot afford a $400,000 home, while the estimated median price of a new home is around $460,000 in 2025.