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
Nov 18, 2025
Storm-Ready Style: What to Know About Impact-Rated Doors in Coastal and Tornado-Prone AreasRising demand for impact-rated doors in storm-prone areas means customers increasingly expect protection without compromise — doors that meet stringent codes while enhancing style, comfort, and long-term value.
Nov 18, 2025
Builder Sentiment Relatively Flat in November as Market Headwinds PersistBuilder confidence in the market for newly built single-family homes rose one point to 38 in November, according to the NAHB/Wells Fargo Housing Market Index (HMI) released today.
Latest Economic News
Nov 18, 2025
Location, Location, Location: How Place and Neighborhood Shape Home ValuesThe value of a single-family home depends not only on its physical features but also on its location and neighborhood context.
Nov 18, 2025
Builder Sentiment Relatively Flat in November as Market Headwinds PersistMarket uncertainty exacerbated by the government shutdown along with economic uncertainty stemming from tariffs and rising construction costs kept builder confidence firmly in negative territory in November.
Nov 17, 2025
August Private Residential Construction Spending Edges HigherPrivate residential construction spending inched up 0.8% in August, continuing steady growth since June 2025. This modest increase was primarily driven by more spending on multifamily construction and home improvements.