House Reintroduces NAHB-Supported Workforce Development Bill
Bipartisan legislation championed by NAHB that is tailored specifically to ease the severe residential construction labor shortage was reintroduced in the House yesterday.
Reps. Juan Ciscomani (R-Ariz.), Marie Gluesenkamp Perez (D-Wash.), Ryan Zinke (R-Mont.) and Don Davis (D-N.C.) introduced the CONSTRUCTS Act, companion legislation to the Senate bill introduced last month by Sens. Jacky Rosen (D-Nev.) and Marsha Blackburn (R-Tenn.) that will support the construction workforce, help improve the housing supply and bend the rising housing cost curve across the nation.
The bipartisan CONSTRUCTS Act directly addresses the lack of workers in the housing sector by expanding opportunities for residential construction training programs at community colleges and technical education schools.
“NAHB commends Reps. Juan Ciscomani, Don Davis, Ryan Zinke and Marie Gluesenkamp Perez for championing bipartisan legislation that will help ease the nation’s housing affordability crisis by addressing the severe labor shortage in the construction industry that is delaying home building projects and increasing construction costs,” said NAHB Chairman Carl Harris. “The CONSTRUCTS Act provides the nation’s community colleges and trade schools the funding needed to train students in trades that support the residential construction industry.”
In any given month, there is a shortage of 200,000 to 400,000 construction workers, and home builders will need to add 2.2 million new workers over the next three years just to keep up with demand. By supporting funding for building and construction trades education, this legislation would bolster the housing workforce and directly address the shortage of skilled construction workers.
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The U.S. labor market rebounded in October, with nonfarm payroll employment increasing by 165,000 jobs and the unemployment rate declining to 4.1%. However, the improvement in overall employment contrasts with continued weakness in residential construction, where employment fell by 16,400 jobs, the largest monthly decline since March 2021.
New multifamily housing confidence weakened year-over-year in the third quarter, according to the Multifamily Market Survey (MMS) by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 41, down five points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 69, also down five points year-over-year.
Mortgage application activity declined in October as the 30-year fixed mortgage rate rose sharply again. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, fell 14.1% month-over-month in October on a seasonally adjusted basis. Compared to a year ago, total mortgage applications were 39.8% lower.