With the ever-growing demand for housing, residential construction finds itself grappling with a significant hurdle: a deficiency of skilled construction labor. This shortage isn’t merely an inconvenience, but a formidable barrier hindering the expansion of home construction, impacting housing inventory, and driving up costs. Today, we will delve into this issue, referencing some eye-opening findings from the Home Builders Institute (HBI) Construction Labor Market Report.
–
The need for skilled workers in our industry is clear and immediate. The HBI report reveals a staggering demand for approximately 723,000 new construction workers each year to keep pace with the growth of the sector. To put this in perspective, residential construction alone accounts for 3.2 million of the total 7.9 million construction payroll employment.
–
But meeting this demand is proving difficult. On average, there are between 300,000 to 400,000 unfilled construction sector jobs every month. This persistent labor gap is especially prevalent in specific trades. Recent surveys indicate that at least 90 percent of single-family home builders are experiencing a shortage of carpenters, and a whopping 80 to 85 percent are lacking subcontractors in six other crucial trades.
–
The problem doesn’t stop with home construction. More than 80 percent of remodelers are reporting a shortage of subcontractors in 11 of the 16 trades. The implications of this shortage are wide-ranging, slowing project timelines, inflating costs, and ultimately exacerbating the nationwide housing crisis.
–
Perhaps more alarming is the trend this data reveals. The proportion of construction workers aged 25 to 54 has dwindled by six percent in the past seven years, signaling a long-term shift away from the construction trades among younger generations. As an industry, we must address this worrying trend if we hope to secure a vibrant future for residential construction.
–
First, we must spotlight construction as a lucrative and rewarding career choice to those who may not have previously considered it. This effort involves not only spreading awareness but also investing in targeted training programs to equip prospective workers with necessary skills.
Second, we should support immigration reform aimed at welcoming a new generation of Americans who are eager to seek opportunities within the construction industry. This shift could be a powerful tool to fill the current labor vacuum while providing a path to prosperity for newcomers to our nation.
–
Finally, we need to shed light on the direct connection between the country’s housing shortage and its construction labor crisis. By advocating for housing affordability, we can draw attention to the pressing need for skilled labor and help pave the way for policy change.
–
For a deeper understanding of the current state of the nation’s construction labor market and to join in the conversation, I urge you to review the full HBI report. As construction business owners and homebuilders, let’s not underestimate our role in shaping the industry’s future. Together, we can bridge the labor gap and ensure the ongoing vitality of residential construction.
–
