The lack of skilled construction labor has been a bottleneck in expanding home construction, directly affecting housing inventory and affordability. The National Association of Home Builders (NAHB) has estimated a shortfall of 1.5 million homes in the coming years, emphasizing the urgency to bridge this gap.

 Interestingly, while housing was instrumental in spearheading the economic expansion in the post-COVID era, predictions indicate a temporary weakening in demand. This is attributed to higher interest rates and softened housing needs, leading to a decline in homes under construction in 2023.
However, the industry is expected to witness a resurgence in 2024, boosting the demand even further for skilled construction workers.

Workforce Demographics & Trends

Growth Requirements: Approximately 723,000 construction workers are needed yearly, as analyzed by NAHB.
Gender Distribution: Women’s participation reached a record high of 11% in 2021, an encouraging sign.
Ethnic Diversity: Hispanics make up a record-high 31.5%, showcasing the broad-based nature of the sector.
Aging Workforce: The median age of workers being 42, coupled with a decrease in the share of workers aged 25 to 54, has resulted in an aging labor force.

Challenges & Opportunities

Weakening Demand: The year-over-year growth remains strong with 46,300 net residential jobs added; however, the recent soft patch has reduced the average monthly employment gain.
Open Jobs & Employment Dynamics: A slowdown in the number of open jobs, averaging between 300,000 to 400,000 each month, hints at the industry’s transitions.
Self-Employment & Immigrant Workers: Self-employment accounts for 23% of the workforce, and immigrant workers comprise 24%, reflecting the multifaceted nature of the industry.


The construction industry’s landscape is a complex weave of economic trends, labor demographics, and socio-cultural factors. As homebuilders, we must recognize and adapt to these changes, fostering a diverse and skilled workforce to overcome the challenges ahead.
The forecasted upswing in housing production in 2024 presents a golden opportunity to reduce the nation’s housing deficit. Collaborative strategies between industry stakeholders, including construction business owners, educational institutions, and policymakers, are vital to tap into this potential.
By understanding these dynamics, we can pave the way for a resilient and thriving construction sector, ultimately contributing to a more robust and inclusive economy.