Currently Reading

How the Skilled Labor Shortage Is Slowing New Home Development

Advertisement
Market Data + Trends

How the Skilled Labor Shortage Is Slowing New Home Development

A lack of skilled construction workers is delaying multifamily projects


November 9, 2021
Construction worker on new house
Image: Stock.adobe.com

A national shortage of skilled construction labor is prolonging a housing crisis defined by low inventory and affordability. The NAHB is estimating that 740,000 workers will need to be hired each year for the next three years to keep up with market demand.

Labor shortages are a key restraint in today’s market, but a scarcity of construction workers can be traced back to the Great Recession, when the industry lost over a million employees, Multi-Housing News reports. As the construction industry struggles to recruit, train, and retain workers, delayed projects and lingering inventory shortages will continue to limit affordability for homebuyers. 

Housing inventory and affordability will continue to be weakened by the shortage of skilled construction labor, according to a new report by the Home Builders Institute (HBI).

The estimations contained in the HBI Fall 2021 Construction Labor Market Report are based on a new analysis of Bureau of Labor Statistics data by the National Association of Home Builders (NAHB). The number of new workers needed yearly to keep up with demand is estimated to be 740,000 each over the next three years.

The HBI report offers a number of other key findings. The number of open construction sector positions averages between 300,000 and 400,000 monthly. Residential construction represents about 3.1 million of the total construction employment of 7.42 million. Construction sector self-employment tallies 22 percent of today’s labor force, a decrease from the 26 percent in 2010. Women comprise a modestly growing share of construction employment, up from 10.3 percent in 2019 to 10.9 percent in 2020.

Read More

Related Stories

Building Materials

Lumber Prices Double After Summer Lows—Here’s Why

Softwood lumber is a hot commodity in the residential construction industry, but a slew of supply challenges are driving up prices

Housing Policy + Finance

New California Duplex Law Permits Development in Residential Neighborhoods

Many cities are pushing opposing regulations—with some testing the limit of what’s allowed

Construction

Water-Focused Investors Are Taking Over Arizona Farmland to Help Urban Home Builders

Investors are pumping out water in Western states to support city builders, but locals are fighting back

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.