Residential Building Wages See Fastest Growth in More Than Five Years
The housing industry’s ongoing skilled labor shortage and the nation’s lingering inflation continue to spur accelerated wage growth. Residential building workers’ wage growth increased in June at its fastest year-over-year rate since December 2018.
According to the Bureau of Labor Statistics, average hourly earnings for residential building workers* was $32.28 per hour in June 2024, up from $29.62 per hour one year ago.
Compared to other industries, the average hourly earnings amount for residential building workers in June was:
- 16.2% higher than the manufacturing industry ($27.79)
- 10.6% higher than the transportation and warehousing industry ($29.18)
- 11.1% lower than the mining and logging industry ($36.33)
However, demand for construction labor is weakening as interest rates remain elevated. The number of open construction sector jobs notably declined to 295,000 in June. Nonetheless, the ongoing skilled labor shortage continues to challenge the construction sector.
NAHB Economist Jing Fu originally provided this analysis in the Eye on Housing blog.
* Refers to production and non-supervisory workers in the residential building industry. This group accounts for approximately two-thirds of the industry’s total employment.
Latest from NAHBNow
Workforce Development
May 05, 2026
Philadelphia BIA Member Shifts How Local Community Views the TradesFor Jordan Parisse-Ferrarini, a member of the Building Industry Association of Philadelphia, a career that began with his family’s small business and tools from a pawn shop has flourished into multiple companies, numerous advisory roles and a passion for developing the next generation of skilled trades professionals.
Economics
May 05, 2026
New Home Sales Rise, Supported by Limited Existing InventorySales of newly built single-family homes rose 7.4% in March, to a seasonally adjusted annual rate of 682,000, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales is up 3.3% from a year earlier.
Latest Economic News
Economics
May 04, 2026
Mortgage Rates Climb as Inflation Rebounds and Yields RiseMortgage rates continued to increase in April as ceasefire negotiations remain inconclusive. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.34% in April, 16 basis points (bps) higher than March. The average 15-year rate also increased by 13 bps to 5.69%. Despite the recent increase, both rates remain lower than a year ago by 39 bps and 21 bps, respectively.
Economics
May 01, 2026
Student Housing Construction Investment Holds Steady in the First Quarter of 2026Private fixed investment in student dormitories edged up 0.1% in the first quarter of 2026, holding at a seasonally adjusted annual rate (SAAR) of $3.9 billion. This modest gain marked a third consecutive quarterly increase, despite continued pressures from elevated interest rates. However, on a year-over-year basis, investments in dorms remained almost unchanged.
Economics
Apr 30, 2026
Housing’s Share of GDP Dips Below 16% for First Time Since 2019Housing’s share of the economy was 15.9% in the first quarter of 2026, according to the latest estimates of GDP produced by the Bureau of Economic Analysis. This share is down from 16.0% in the fourth quarter and is lower than 16.5% registered just one year ago.