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 | Environmental Issues

Dec 17, 2025

NAHB Weighs In on New WOTUS Rule

In November, the Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers (Corps) announced a proposed updated definition of “waters of the United States” (WOTUS), followed by a 45-day comment period to gather input on the proposed rule. NAHB members and HBA staff provided comments at three public sessions hosted by the agencies to solicit feedback.

Advocacy | Economics | IBS

Dec 17, 2025

Podcast: 2025 - The Year of Housing

On the latest episode of NAHB's podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez recap top events and priorities for the year, and what to expect for 2026, including the 2026 International Builders' Show in Orlando.

View all

Latest Economic News

Economics

Dec 16, 2025

Job Market Shows Signs of Cooling in November

In November, job growth slowed, and the unemployment rate rose to 4.6%, its highest level in four years. At the same time, job gains for the previous two months (August and September) were revised downward. The November’s jobs report indicates a cooling labor market as the economy heads into the final month of the year.

Economics

Dec 15, 2025

Builder Sentiment Inches Higher but Ends the Year in Negative Territory

Builder confidence inched higher to end the year but still remains well into negative territory as builders continue to grapple with rising construction costs, tariff and economic uncertainty, and many potential buyers remaining on the sidelines due to affordability concerns.

Economics

Dec 11, 2025

Homeownership Rate Inches Up to 65.3%

The latest homeownership rate rose to 65.3% in the third quarter of 2025, according to the Census’s Housing Vacancy Survey (HVS).