Labor Shortages Still Hurting Affordability
Labor and subcontractor shortages remained widespread in July and continue to impact the industry in a number of ways — including putting additional upward pressure on new home prices — according to a recent survey conducted by NAHB. The survey listed 15 specific occupations, and for each one, builders reported widespread shortages of varying degrees, ranging from a low of 47% for building maintenance managers to a high of 83% for framing crews. Labor shortages in 14 occupations were either unchanged or even more widespread than they were at this point last year. The share of builders reporting a shortage of rough carpenters ticked down one percentage point, but remains at a whopping 82%. The same survey asked builders about the effects labor shortages may be having on their businesses. At least three out of four respondents reported that a dearth of workers is:
- Causing builders to pay higher wages/subcontractor bids (87%);
- Making it difficult to complete projects on time (81%);
- Making it harder to find subcontractors with well-trained employees (79%); and
- Forcing builders to raise home prices (75%).