HBI Calls on Home Builders to Take Bold Action to Address Workforce Crisis

Workforce Development
Published

To ease severe worker shortages that are delaying construction timelines and raising housing costs, home builders must make fundamental changes to the way they do business, Ed Brady, CEO of the Home Builders Institute (HBI), said during a press conference at the 2022 International Builders’ Show in Orlando.

Brady, a former NAHB chairman and a second-generation home builder for more than 30 years, said the chronic labor shortage is a “long-term structural crisis.” He issued a “call to action for an all hands and industry-wide effort to increase training, compensation, diversity and productivity.”

While construction wages are up, what prospective workers also want is to see that the residential construction industry will provide them with a solid future.

“We need to take a look at the traditional business model of home builders and ask ourselves whether it is properly structured to attract, retain and build the next generation of the nation’s construction labor force,” Brady said.

HBI’s most recent Construction Labor Market Report shows that to meet the nation’s housing demand, the residential construction industry will need to train and place a staggering 2.2 million new workers within the next three years.

Brady laid out the following steps the industry must take to attract more workers into home building:

  • Recruit more women
  • Train and place more minority, lower-income and second-chance youths and adults
  • Provide trade skills education and training to veterans and transitioning military
  • Develop a national immigration policy that works
  • Change entrenched and misguided perceptions of careers in construction

A Changing Workforce

Brady added that home builders should consider the behaviors that the labor market is displaying in this era of the ‘Great Resignation.’

“The nature of the workforce is changing. And it is not just about higher compensation, although builders will have to stay vigilant on that score to remain competitive in the labor market, while balancing the need to keep housing and homeownership affordable,” he said.

“Beyond better paychecks, people are looking for the best overall workplace environment when they choose what careers to pursue,” he said.

Productivity is Key

NAHB Chief Economist Robert Dietz, who joined Brady at the press conference, underlined the need for gains in productivity, which has increased in the construction sector by only eight percent since 1993. He said that gains in productivity can significantly contribute to narrowing the gap between housing demand and the supply of workers.

“The only way to achieve sustainable gains for residential construction wages is to realize improvements for workforce productivity,” Dietz said. “This can be earned via new methods of operation, higher levels of training, and investment in capital and technology. Higher wages will then allow for additional recruitment in the sector.”

For its part, HBI is ramping up several major programs to address the scarcity of construction labor, according to Brady. “With the generous support of our financial partners, HBI is building and sustaining a multi-faceted attack on the problem.”

Learn more at hbi.org.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics | Housing Affordability

Aug 21, 2025

New and Existing Homes Remain Largely Unaffordable in Second Quarter

While new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the NAHB/Wells Fargo Cost of Housing Index (CHI). The CHI results from the second quarter of 2025 show that a family earning the nation’s median income of $104,200 needed 36% of its income to cover the mortgage payment on a median-priced new home. Low-income families, defined as those earning only 50% of median income, would have to spend 71% of their earnings to pay for the same new home.

Economics

Aug 20, 2025

Custom Home Building Grows as Broader Housing Market Struggles

An analysis of census data by NAHB economists shows that custom home building grew 4% in the second quarter of 2025 as high interest rates and home prices suppress demand for traditional spec home production.

View all

Latest Economic News

Economics

Aug 21, 2025

Existing Home Sales Rise in July

Existing home sales rebounded in July as mortgage rates retreated from the recent peak and home price growth slowed, according to the National Association of Realtors (NAR).

Economics

Aug 21, 2025

New and Existing Homes Remain Largely Unaffordable in Second Quarter

While new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).

Economics

Aug 20, 2025

Retreat for Single-Family Built-for-Rent Housing

Single-family built-for-rent construction fell back in the second quarter, as a higher cost of financing crowded out development activity.