A shortage of skilled construction workers is hampering home builders.
Reuters reports that, according to the National Association of Home Builders, there are approximately 200,000 unfilled construction jobs in the U.S., and that there has been a 81 percent increase in unfilled jobs over the last two years.
The housing bust was estimated to have driven 30 percent of construction workers into new fields, and 17 percent fewer people work in construction compared to the market peak.
The impact is two-fold. Without enough workers, residential construction is trailing demand for homes, dampening the overall economy.
And with labor costs rising, home builders are building more expensive homes to maintain their margins, which means they are abandoning the starter home market. That has left entry-level homes in tight supply, shutting out would-be buyers at a time when mortgage rates are near historic lows.
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