A new industry report confirms that a continued shortage of skilled construction workers is limiting housing output in the United States, costing the sector an estimated $10.8 billion each year. The analysis, led by the Home Builders Institute and the National Association of Home Builders, shows that around 19,000 fewer single-family homes were completed in 2024 due to project delays averaging nearly two months, especially for small and mid-sized builders.
Despite these challenges, builders and industry groups are stepping up efforts to close the gap. Companies are increasing wages to attract workers, while trade organisations are expanding vocational training, apprenticeships and partnerships with community colleges. Modular construction and new building technologies are also being adopted more widely to boost productivity and offset labour shortages.
Housing market data from May indicates a slowdown in new housing starts, which fell about 10 percent to an annualised rate of 1.26 million units. Multifamily starts dipped over 30 percent. Builders say the combination of higher borrowing costs, rising material prices and labour constraints remains a hurdle for keeping pace with housing demand.
However, recent moves by policymakers and local governments to support trade schools and streamline training could help strengthen the workforce pipeline in the coming years. Many firms are reporting success with targeted recruitment and on-site training programmes, helping to reduce delays and maintain steady construction activity.
Industry leaders agree that while workforce challenges persist, growing investment in people and modern methods is laying the foundation for stronger, more resilient housing growth. By focusing on skills development now, builders aim to meet demand more efficiently and contribute to long-term affordability.
