Residential Building Wages See Fastest Growth in More Than Five Years

Economics
Published

The housing industry’s ongoing skilled labor shortage and the nation’s lingering inflation continue to spur accelerated wage growth. Residential building workers’ wage growth increased in June at its fastest year-over-year rate since December 2018.

According to the Bureau of Labor Statistics, average hourly earnings for residential building workers* was $32.28 per hour in June 2024, up from $29.62 per hour one year ago.

Compared to other industries, the average hourly earnings amount for residential building workers in June was:

  • 16.2% higher than the manufacturing industry ($27.79)
  • 10.6% higher than the transportation and warehousing industry ($29.18)
  • 11.1% lower than the mining and logging industry ($36.33)

However, demand for construction labor is weakening as interest rates remain elevated. The number of open construction sector jobs notably declined to 295,000 in June. Nonetheless, the ongoing skilled labor shortage continues to challenge the construction sector.

NAHB Economist Jing Fu originally provided this analysis in the Eye on Housing blog.

* Refers to production and non-supervisory workers in the residential building industry. This group accounts for approximately two-thirds of the industry’s total employment.

Subscribe to NAHBNow

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

Log in to subscribe

Latest from NAHBNow

Safety

Jun 12, 2025

National Safety Month: Employee Engagement

NAHB is joining with official safety sponsor Builders Mutual to highlight jobsite safety resources during National Safety Month, an annual observance from the National Safety Council.

Economics

Jun 11, 2025

Will AI Be a Job Creator or Job Destroyer?

Artificial intelligence (AI) is rapidly changing industries — and home building is no exception. From AI-powered design tools to robotic equipment on job sites, the way homes are constructed is already evolving.

View all

Latest Economic News

Economics

Jun 12, 2025

Producer Prices Rise in May: New Construction Input Analysis

Prices for inputs to new residential construction—excluding capital investment, labor, and imports—rose 0.2% in May, following a (revised) decrease of 0.2% in April. These figures are taken from the most recent Producer Price Index (PPI) report published by U.S. Bureau of Labor Statistics.

Economics

Jun 11, 2025

Inflation Up Slightly in May

Despite inflationary pressure from tariffs, inflation in May rose slightly but came in softer than expected. The Consumer Price Index increased from 2.3% in April to 2.4% in May year-over-year, according to the Bureau of Labor Statistics’ report.

Economics

Jun 10, 2025

House Price Appreciation by State and Metro Area: First Quarter 2025

House price growth slowed in the first quarter of 2025, partly due to a decline in demand and an increase in supply. Persistent high mortgage rates and increased inventory combined to ease upward pressure on house prices. These factors signaled a cooling market, following rapid gains seen in previous years.