Residential Building Wages See Fastest Growth in More Than Five Years
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.
Latest from NAHBNow
Aug 21, 2025
New and Existing Homes Remain Largely Unaffordable in Second QuarterWhile new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the NAHB/Wells Fargo Cost of Housing Index (CHI). The CHI results from the second quarter of 2025 show that a family earning the nation’s median income of $104,200 needed 36% of its income to cover the mortgage payment on a median-priced new home. Low-income families, defined as those earning only 50% of median income, would have to spend 71% of their earnings to pay for the same new home.
Aug 20, 2025
Custom Home Building Grows as Broader Housing Market StrugglesAn analysis of census data by NAHB economists shows that custom home building grew 4% in the second quarter of 2025 as high interest rates and home prices suppress demand for traditional spec home production.
Latest Economic News
Aug 21, 2025
Existing Home Sales Rise in JulyExisting home sales rebounded in July as mortgage rates retreated from the recent peak and home price growth slowed, according to the National Association of Realtors (NAR).
Aug 21, 2025
New and Existing Homes Remain Largely Unaffordable in Second QuarterWhile new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).
Aug 20, 2025
Retreat for Single-Family Built-for-Rent HousingSingle-family built-for-rent construction fell back in the second quarter, as a higher cost of financing crowded out development activity.