WASHINGTON – Skilled construction workers will be needed to reduce the nation’s housing deficit during the second part of this decade, a shortfall the National Association of Home Builders estimates to total 1.5 million homes.
A lack of skilled construction labor is a key limiting factor to expanding home construction and improving housing inventory and affordability, according to the new Home Builders Institute Construction Labor Report.
Housing was a bright spot for the economy during the post-COVID era, as construction activity helped lead an economic expansion. However, the demand for residential labor will soften temporarily as the number of homes under construction declines in 2023 due to higher interest rates and weakened demand for housing. This downturn will then be followed by an upswing for housing production in 2024, increasing the demand for construction labor.
