A shortage of construction workers is limiting US homebuilding capacity and contributing to ongoing affordability challenges in the housing market, according to industry leaders.
Labor Gap Constraints
Jim Tobin, president and CEO of the National Association of Home Builders, said the labor gap continues to be a major constraint on new construction nationwide. The construction industry is currently short approximately 250,000 workers each month, with prior estimates reaching as high as 400,000 during periods of higher demand.
Industry leaders say the gap is driven by an aging workforce, fewer young workers entering skilled trades, and ongoing challenges in recruiting and retaining labor. The industry will need roughly 723,000 new workers annually to meet housing demand and address the nation’s estimated 1.5 million-home supply gap.
Builders say the shortage is already affecting timelines, with some reporting construction delays of nearly two months on average. The added time is also contributing to higher overall costs for new housing developments.
Addressing the Shortage
Efforts are underway to expand training programs and encourage more workers to enter the skilled trades. However, Tobin said workforce development alone may not be enough to close the gap. He also pointed to immigration policy as part of the broader workforce challenge, noting that immigrant workers make up roughly one-third of the homebuilding contractor labor force.
Tobin said the industry needs expanded legal pathways for workers. “We’ve got to find a way to modernize our immigration laws,” he said. “We’ve got to create a visa system for people who want to work legally in this country, in the construction industry.”
Original reporting: WOWO News/Talk (Fort Wayne) — read the source article.
