Labor Shortage Causing Housing Crisis Across U.S.

A skilled labor shortage across the U.S. is reaching a crisis level, says the NAHB, but in order to meet rising consumer demands, 740,000 new workers will need to be hired per year for the next three years despite a gain of just over 100,000 in the past year.

A lack of skilled construction labor is a major limiting factor in the race to provide greater housing inventory and improve affordability in a tight market.

The report cautions that the required number of construction workers to keep up with demand is approximately 740,000 new workers per year for the next three years, based on a new analysis of Bureau of Labor Statistics data by NAHB. The estimate is determined by approximating the required net growth in employment due to construction expansion plus the workers required to replace individuals who leave the sector permanently.

“The construction industry needs more than 61,000 new hires every month if we are to keep up with both industry growth and the loss of workers either through retirement or simply leaving the sector for good,” said HBI president and CEO Ed Brady. “From 2022 through 2024, this total represents a need for an additional 2.2 million new hires for construction.”

“The construction worker shortage has reached crisis level,” said Brady. “The situation will become more challenging in the coming year when other industries rebound and offer competitive wages and benefits to prospective employees.”

For more key findings and to read about steps that home builders can take to increase the number of skilled construction trade workers in the United States …