Wage Growth Remains Slow for Residential Construction Workers

Residential wages remain high compared with similar industries, but growth has slowed considerably at the start of 2026, according to U.S. Bureau of Labor Statistics data analyzed by the National Association of Home Builders. In March 2026, average hourly earnings for residential building workers increased by 2.1% year-over-year, down from the 9.4% peak reached in mid-2024.

When taking inflation into account, residential construction wages actually decreased slightly

After accounting for inflation, wage growth actually declined. Real wages accounting for inflation declined by 1.2% year-over-year in March 2026. Real wage growth improved temporarily during parts of 2024, reaching a peak of 6.2%, but since then, its has slowed alongside the slowdown in residential construction activity.

Residential construction wages remain competitive when compared with similar industries

Still, wages for residential construction workers remain higher than other similar industries. For instance, wages for residential construction are 8.4% higher than the manufacturing sector and 22.4% higher than the transportation and warehousing sector, but they are 3.6% lower than the mining and logging sector.