Residential Building Wages Grow at Unprecedented Rate

Labor
Published
Average Hourly Wage Growth

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Membership | Leadership Meetings

Jan 14, 2026

Applications for 2026 Leadership Grants and Scholarships Now Open

NAHB is invested in professional development opportunities for its members and providing exposure to NAHB leadership meetings to help foster future leaders for the home building industry. Applications are now open for select leadership grants and scholarships for qualified members to capitalize on these opportunities.

Advocacy | Economics | IBS

Jan 13, 2026

Podcast: Home Builders and Buyers Unsettled as 2026 Begins

On the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez kick off the first podcast of 2026 looking at the state of housing, the political environment heading into a midterm year, and how builders and buyers are attempting to navigate the current market.

View all

Latest Economic News

Economics

Jan 14, 2026

Building Material Price Growth Remains Elevated in November

Residential building material prices continued to experience elevated growth, according to the latest Producer Price Index release from the Bureau of Labor Statistics. Price growth has been above 3.0% since June this year, despite continued weakness in the new residential construction market.

Economics

Jan 13, 2026

New Home Sales Rise Year-Over-Year as Prices Stabilize

The new home sector has played an increasingly important role in meeting housing demand as resale inventory remains constrained in many regions. The latest data released today (and delayed because of the government shutdown in fall of 2025) indicate that new single-family home sales continue to reflect a stabilizing market after a period of heightened volatility.

Economics

Jan 13, 2026

Inflation Steady in December

Inflation held steady in December, matching November’s reading, according to the Bureau of Labor Statistics (BLS) latest report. This December report was the first report to include a month-to-month figure since the government shutdown.