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.
A recent study by economists Ping Wang and Tsz-Nga Wong, “Artificial Intelligence and Technological Unemployment” (NBER Working Paper No. 33867, May 2025), explores AI’s potential long-term impact on jobs and productivity.
The economists acknowledge that AI boosts efficiency, but it may also lead to job losses — especially early in its adoption. AI systems learn from human workers and, over time, may begin to replace some of them if roles and wages don’t evolve.
The study outlines three possible scenarios for the future of AI:
- Aggressive AI Adoption: Productivity triples, but nearly 25% of jobs are lost as a result. And half of those job losses occur within the first five years.
- Balanced Integration: AI complements human labor, improving productivity without major job loss.
- Stalled Adoption: AI fails to take off, leaving the labor market and overall economy largely unchanged.
How AI Could Reshape Housing
Supply-Side Impacts
AI is already improving speed and precision on job sites. Tools such as generative design software, robotic bricklayers and predictive scheduling are reducing manual labor and streamlining construction. These gains may improve project efficiency, but they also create new challenges.
Workers in traditional roles may face displacement, while demand rises for skilled technicians who can manage AI systems. Without retraining efforts, builders may face a shortage of high-skill labor, delaying projects and raising costs.
Demand-Side Shifts
As AI disrupts white-collar jobs in other industries, short-term shifts in housing demand may occur. But in the long run, increased worker productivity and wage growth could ultimately lead to increased demand for housing, including remodeling projects, custom builds and second homes.
NAHB Senior Director of Forecasting and Analysis Jing Fu provides more in-depth insights in this recent Eye On Housing article.