Positive Developments on the Workforce Development Front
NAHB scored important victories this week on the workforce development front, with legislation introduced that is targeted specifically to increase job training in the residential construction sector and a Senate appropriations panel approving robust funding for Job Corps in fiscal year 2025.
NAHB commends Sen. Jackie Rosen (D-Nev.) for introducing the CONSTRUCTS Act, legislation that will ease the severe labor shortage in the home building industry that is causing construction delays and raising housing costs.
“In any given month, there is a shortage of roughly 400,000 construction workers,” said NAHB Chairman Carl Harris. “By supporting new and existing residential construction education programs, the CONSTRUCTS Act will help ensure we have enough workers to build the homes our nation needs.”
The same day that Sen. Rosen dropped her bill on Aug. 1, the Senate Labor-HHS appropriations committee approved funding for Job Corps in fiscal year 2025 at a level of $1.76 billion, the same amount that was approved in the previous fiscal year.
Job Corps is a vital source of skilled labor for the housing industry, and NAHB has lobbied aggressively to ensure this program remains fully funded after House appropriators last year proposed to abolish the program as part of a 30% reduction of the agency’s fiscal year 2024 budget. Thanks largely to NAHB’s efforts, congressional appropriators changed course and moved to fully fund Job Corps at $1.76 billion in fiscal year 2024.
Last month, the House Labor-HHS appropriations committee approved language that will maintain Job Corps’ funding level at $1.76 billion in fiscal year 2025. With the Senate Labor-HHS appropriations committee following suit, this is a significant win for the housing industry.
Our message that a housing supply shortage is the primary cause of growing housing affordability challenges and ensuring we have enough workers to build the homes the nation needs is ringing loud and clear on Capitol Hill.
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The newly enacted 21st Century ROAD to Housing Act directs the Department of Housing and Urban Development to develop voluntary federal guidelines for state and local zoning best practices. Although not mandatory, the guidelines will help shape how communities are evaluated for federal grants and give states a model for developing their own enabling legislation.
The overall labor market continued to lose momentum in July, with nonfarm payrolls falling by 23,000 and previous job gains revised sharply lower.
Latest Economic News
Residential building material prices, excluding energy, rose 0.4% in July and were up 5.0% from a year ago. Energy prices fell again in July but remained significantly higher than a year ago. Meanwhile, prices for services were down 0.3% over the month but were 6.2% higher than a year ago.
The latest homeownership rate declined to 65% in the second quarter of 2026, according to the Census’s Housing Vacancy Survey (HVS). The homeownership rate was unchanged from a year ago, and not statistically different than the rate in the first quarter of the year (65.3%).
Led by declines in gasoline and diesel prices, inflation eased for the second consecutive month after reaching a three-year high in May. As energy prices moderated, shelter resumed its role as the largest driver of headline inflation, accounting for one-third of the annual increase and over two-thirds of the monthly increase.