Residential Building Wages Grow at Unprecedented Rate
Wages for residential building workers grew at a fast pace of 9.9% in September, following a robust 10.8% gain in August. These year-over-year growth rates in the past four months were unprecedented in the history of the data series since 1990. After a 0.3% increase in June 2023, the YOY growth rate for residential building worker wages has been trending higher over the past year.
The ongoing skilled labor shortage in the construction labor market and lingering inflation impacts account for the recent acceleration in wage growth. However, the demand for construction labor remained weaker than a year ago.
As noted in the latest Eye on Housing JOLTS blog, the number of open construction sector jobs fell from a revised 328,000 in August to a softer 288,000 in September. Nonetheless, the ongoing skilled labor shortage continues to challenge the construction sector.
According to the Bureau of Labor Statistics report, average hourly earnings for residential building workers1 was $33.51 per hour in September 2024, increasing 9.9% from $30.50 per hour a year ago. This was 19.2% higher than the manufacturing’s average hourly earnings of $28.12 per hour, 14.7% higher than transportation and warehousing ($29.21 per hour), and 8.1% lower than mining and logging ($36.46 per hour).
1Data used in this post relate to production and nonsupervisory workers in the residential building industry. This group accounts for approximately two-thirds of the total employment of the residential building industry.
Latest from NAHBNow
Member Benefits
Oct 22, 2026
How to Build Your Fleet for Less with Member-Exclusive Ram Savings
Year-end offers on commercial trucks make this an ideal time for residential construction pros to upgrade the vehicles that keep their businesses moving. And for NAHB members, there’s even more reason to shop thanks to exclusive savings from Ram.
Housing Finance | Multifamily
Oct 21, 2026
HUD Expands Multifamily Mortgage Insurance to Built-to-Rent Developments
The Department of Housing and Urban Development (HUD) issued a mortgagee letter to announce it is revising its policy to expand access to HUD-insured Federal Housing Administration (FHA) financing for built-to-rent developments.
Latest Economic News
Economics
Oct 21, 2026
Nearly One in Three Construction Workers are Hispanic
Diversifying the construction labor force remains a key priority amid persistent skilled labor shortages. According to NAHB analysis of the 2024 American Community Survey, non-Hispanic White workers account for the majority of the construction industry at 55.8%. Hispanic workers now represent nearly one-third of the labor force at 32.8%, followed by non-Hispanic Black workers at 5% and non-Hispanic Asian workers at 1.8 %.
Economics
Oct 21, 2026
Market Share for Modular and Other Non-Site Built Housing in 2025
The total market share of non-site-built single-family homes (modular and panelized) was just 3% of single-family homes in 2025, according to NAHB analysis of completion data from the U.S. Census Bureau’s Survey of Construction (SOC).
Economics
Oct 20, 2026
Single-Family Starts Down as Affordability Challenges Persist
Single-family housing starts declined in September as builders faced higher financing, building material costs, and ongoing labor shortages.