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
Advocacy
Jul 17, 2026
Builders Celebrate Major Housing Win in DelawareThe Housing for Every Delawarean Act addresses the state’s housing shortage by creating a more predictable framework for housing development while continuing to respect local planning and community standards.
Safety
Jul 17, 2026
Keep Workers Safe from Wildfire Smoke on JobsitesWith wildfires raging across Ontario, Canada and smoke impacting huge areas of the Northeast and upper Midwest in the U.S., it is important to know the effects wildfire smoke can have across the country, even if you are not in an area that is at risk for wildfires.
Latest Economic News
Economics
Jul 17, 2026
Multifamily Gains Lift Overall Starts Despite Single-Family DeclineStrong multifamily growth pushed overall housing starts higher in June, while single-family production remained sluggish as elevated mortgage rates, rising construction costs and persistent labor shortages continued to weigh on the market.
Economics
Jul 16, 2026
Builder Sentiment Stays Weak as Affordability Concerns PersistEconomic uncertainty and persistent affordability challenges driven by rising material prices, high land costs, and elevated mortgage rates continue to weigh on builder sentiment.
Economics
Jul 15, 2026
Building Material Prices Continue to Rise Despite Energy Price DeclinesResidential building material prices, excluding energy, rose 0.5% in June and were up 4.6% from a year ago. Lower energy prices were apparent in June, as energy input prices fell 10.3% over the month. Meanwhile, prices for services rose 5.2% over the year, and were up 1.0% from the previous month.