Positive Developments on the Workforce Development Front
NAHB scored important victories this week on the workforce development front, with legislation introduced that is targeted specifically to increase job training in the residential construction sector and a Senate appropriations panel approving robust funding for Job Corps in fiscal year 2025.
NAHB commends Sen. Jackie Rosen (D-Nev.) for introducing the CONSTRUCTS Act, legislation that will ease the severe labor shortage in the home building industry that is causing construction delays and raising housing costs.
“In any given month, there is a shortage of roughly 400,000 construction workers,” said NAHB Chairman Carl Harris. “By supporting new and existing residential construction education programs, the CONSTRUCTS Act will help ensure we have enough workers to build the homes our nation needs.”
The same day that Sen. Rosen dropped her bill on Aug. 1, the Senate Labor-HHS appropriations committee approved funding for Job Corps in fiscal year 2025 at a level of $1.76 billion, the same amount that was approved in the previous fiscal year.
Job Corps is a vital source of skilled labor for the housing industry, and NAHB has lobbied aggressively to ensure this program remains fully funded after House appropriators last year proposed to abolish the program as part of a 30% reduction of the agency’s fiscal year 2024 budget. Thanks largely to NAHB’s efforts, congressional appropriators changed course and moved to fully fund Job Corps at $1.76 billion in fiscal year 2024.
Last month, the House Labor-HHS appropriations committee approved language that will maintain Job Corps’ funding level at $1.76 billion in fiscal year 2025. With the Senate Labor-HHS appropriations committee following suit, this is a significant win for the housing industry.
Our message that a housing supply shortage is the primary cause of growing housing affordability challenges and ensuring we have enough workers to build the homes the nation needs is ringing loud and clear on Capitol Hill.
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The U.S. Supreme Court declined to hear a challenge to a New York City law that requires certain property owners to pay a substantial fee to convert their properties to unrestricted residential use. NAHB filed a brief urging the Supreme Court to review the case.
Latest Economic News
Labor shortages in the home building industry are becoming more widespread, according to recent results from the NAHB/Well Fargo Housing Market Index (HMI) survey.
Higher energy prices pushed inflation to a four-month high in September, keeping pressure on the Fed as inflation has remained above its 2% target for more than five years.
Existing home sales rose after three months of declines as improved inventory gave buyers more negotiating power. As buyers wait for rate relief, homes are sitting on the market longer and for-sale inventory reached the highest level in over a decade.