New HBI Report Shows an Increase in Demand for Construction Labor
Additional skilled construction workers will be needed to reduce the nation's housing deficit during the second part of this decade, a shortfall NAHB estimates to total 1.5 million homes. The latest Construction Labor Market Report from the Home Builders Institute (HBI) provides an overview of the current state of the nation’s construction labor market.
Key findings in the report include:
- There are currently 8.2 million payroll construction workers.
- The estimated, required amount of construction worker hiring is approximately 723,000 per year, according to NAHB analysis of BLS data and projections.
- The number of open construction sector jobs was above 400,000 at the start of the year. The count fell in March.
- Average hourly wages in the overall construction industry have increased 5% over the last year, with average wage levels exceeding national private sector averages.
- Women make up a growing share of the construction employment, reaching 10.9% in 2022. This is a noticeable increase from 9.1% in 2017 and just below the record high share of 11% recorded in 2021.
NAHB Chief Economist Dr. Robert Dietz and HBI CEO Ed Brady discuss the report’s key findings, trends and possible solutions for the labor shortage in an HBI Podcast. To learn more about the residential construction labor market, view the report.
Latest from NAHBNow
Jan 22, 2026
NAHB Podcast: The Davos Housing Update That Wasn’tOn the latest episode of NAHB’s podcast, Housing Developments, Chief Operating Officer Paul Lopez is joined by Chief Advocacy Officer Ken Wingert to discuss the latest housing policies, including the housing announcement (or lack thereof) at the World Economic Forum and NAHB's continued advocacy efforts for 2026.
Jan 21, 2026
NAHB Announces 2026 Best of IBS FinalistsMore than 300 product entries in nine categories were judged by 42 industry and media representatives. See which products were selected as finalists in the 2026 Best of IBS Awards.
Latest Economic News
Jan 22, 2026
House Prices Decline in Local Markets Despite National GrowthNationally, house prices continued to rise at a modest pace in the third quarter of 2025, as mentioned in our previous quarterly house prices post. However, this national trend masks significant variation across local markets. While many metro areas continued to see house price appreciation, others experienced notable declines following several years of rapid growth.
Jan 21, 2026
Private Residential Construction Spending Edges Higher in October on Home ImprovementsPrivate residential construction spending was up 1.3% in October, rebounding from a 1.4% decline in September 2025. This modest gain was primarily driven by increased spending on home improvements.
Jan 21, 2026
Single-Family Permits Cooled in the FallIn October, single-family building permits weakened, reflecting continued caution among builders amid affordability constraints and financing challenges. In contrast, multifamily permit activity remained steady and continued to perform relatively well.