Building a home is a complex process, requiring a dedicated team of people working in coordination over a course of months or even years. Unfortunately, finding skilled construction workers is not as easy as it once was. In our member surveys, builders are reporting that the availability of labor has become a major problem.
In December we included a question in the monthly NAHB/Wells Fargo Housing Market Index (HMI) survey that asked members about the problems they faced in 2016 and what problems they expect to face this year. Their No. 1 response: labor shortages. And they don’t expect the situation to improve in the near future: 78% of builders said that the availability of workers was a problem in 2016, and 82% think it will be a concern in 2017. This is a huge jump from 2011, when only 13% of builders noted it as an issue.
Findings from a June 2016 HMI survey that asked more specific questions about labor and subcontractor availability also showed that shortages have become more widespread over the past few years. They were especially severe for skilled workers, such as carpenters. In this survey, 72% of builders reported a lack of people willing and able to do rough carpentry.
These shortages can hurt both home buyers and home builders. In the June 2016 survey, 68% of builders said the lack of workers ultimately forced them to raise home prices. Meanwhile, 64% said they had difficulty completing projects on time, and 28% said they actually had to turn down projects. For these reasons, NAHB is tackling this issue head-on.
NAHB plans to work with the Trump administration and the 115th Congress to develop legal ways for immigrants to enter the construction workforce as demand for labor increases. The association supports comprehensive immigration reform that will safeguard our borders, establish a fair employment verification system, and create a market-based visa system.
NAHB also has partnered with other stakeholders to launch the Skilled Labor Fund. This fund will provide scholarships for students to attend construction training programs nationwide. It is part of the National Housing Endowment, NAHB’s philanthropic arm that helps develop more effective approaches to home building and strengthens education and training opportunities in residential construction.
In addition, NAHB CEO Jerry Howard recently participated on an American Real Estate Society panel focused on integrating professional associations into the real estate/construction management curriculum in colleges and universities.
NAHB’s job training affiliate, HBI, is a national leader for career preparation and job placement in the building industry. HBI has four different training programs focused on 10 residential construction trades, including carpentry, landscaping, and weatherization. HBI places roughly 80% of its graduates in building sector jobs or advanced training.
Plus, NAHB has created a Building a Skilled Labor Workforce webpage to help educators, policymakers, and industry partners get students thinking about residential construction careers. This page includes employment data, scholarship information, and mentorship opportunities for home builders.
This problem won’t be solved in a week or even a year, but NAHB is committed to recruiting workers to the home building sector.
