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
Sponsored Content
Sep 18, 2026
Why Growth Breaks Builders Who Aren't Ready for It
Financing should be a strategic growth tool, not a substitute for a sound business. The right capital, aligned with the right projects and deployed at the right time, helps builders move when opportunity arrives.
Material Costs
Sep 17, 2026
House Bill Seeks Tariff Relief for Building Materials
NAHB worked with Rep. Nanette Barragán (D-Calif.) on legislation aimed at lowering housing costs by establishing a tariff exemption process for building materials. The Housing Tariff Exclusion Act (H.R. 10416) would automatically exempt many home building materials from President Trump’s current and future tariffs and give importers a process to seek exemptions for additional materials.
Latest Economic News
Economics
Sep 17, 2026
Single-Family Starts Rebound but Market Challenges Persist
Single-family housing starts rebounded in August, but production remains down 4.7% year to date as builders contend with rising construction costs, lot and labor shortages, and economic uncertainty.
Economics
Sep 16, 2026
With Inflation Uptick, Fed Hikes and Signals More to Come
The Federal Reserve raised the federal funds rate by 25 basis points at the conclusion of its September policy meeting, bringing the target range to 3.75% to 4%.
Economics
Sep 16, 2026
Builder Sentiment Falls on Higher Interest Rates and Costs
Higher mortgage rates, worsening labor shortages and rising material costs are weighing on builder sentiment.