New HBI Report Shows an Increase in Demand for Construction Labor

Workforce Development
Published

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.

Subscribe to NAHBNow

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

Log in to subscribe

Latest from NAHBNow

Advocacy

Jun 23, 2026

NAHB Applauds Congressional Passage of Landmark Housing Bill

NAHB Chairman Bill Owens issued the following statement after the House passed the 21st Century ROAD to Housing Act, sending the bill to President Trump to be signed into law.

Economics

Jun 23, 2026

Jobs-to-Permits Ratios Highlight Housing Gap

Home building activity did not fully keep pace with demand driven by job gains as strong labor market growth continued to put pressure on the nation's housing supply in 2024.

View all

Latest Economic News

Economics

Jun 22, 2026

Structural Demand Outpacing Supply: Jobs-to-Permits Ratios Highlight Housing Gap

Strong labor market growth continued to put pressure on the nation’s housing supply in 2024, as home building activity did not fully keep pace with demand driven by job gains. Comparing net new jobs with prior-year permitting activity helps show whether the pace of housing construction is keeping up with potential household formation and broader economic growth.

Economics

Jun 18, 2026

Gains for Household Real Estate Assets

The market value of households’ real estate assets rose to a new high in the first quarter reaching $48.7 trillion, according to the most recent release of U.S. Federal Reserve Z.1 Financial Accounts. This level is 1.7% higher than in the fourth quarter and is 2.6% higher than a year ago.

Economics

Jun 17, 2026

A Laconic Statement: Hawkish Hold and New Plans from the Fed

With a new Fed Chair and plans for evolving operating strategies, the Federal Reserve maintained its target policy rate at the conclusion of the June Federal Open Market Committee (FOMC) meeting. For the fourth consecutive meeting, the FOMC maintained the short-term federal funds rate at a top rate of 3.75%.