While the construction labor shortage is a nationwide issue, certain metros offer greater opportunities for workers, in terms of the number of jobs and approved projects as well as average pay, according to an analysis by Point2Homes. To determine the most dynamic metros for construction workers, Point2Homes ranked metros based on eight factors: number of jobs, wage, building permit change, housing units, permits per housing units, construction establishments, location quotient, and cost of living.
Of the 146 qualifying metros analyzed, the evolution of opportunity and demand make Kennewick, Washington, and St. George, Utah, the most “thriving metros for construction jobs,” according to Point2Homes. Such findings conform to the general trend that small and midsized metros have emerged as top options for construction employment due to increases in job demand since the start of the pandemic.
Eighteen of the top 20 metros Point2Homes identified as “flourishing” construction job hubs have populations of less than 1 million. According to analysis by Point2Homes, 83 jobs per 1,000 are construction related in the Kennewick-Pasco-Richland, Washington, metro, and the area offers a high median salary of $67,200 for construction professionals. St. George is one of three Utah metros in the top 10 best areas for construction work identified by Point2Homes.
Point2Homes found that smaller metros also had the highest concentration of construction-related positions, led by Greeley, Colorado, and St. George. Smaller metros in Washington (Kennewick, Bremerton) and Florida (Cape Coral, The Villages, and Naples) also rank high on the list of metros with the largest shares of construction jobs. Metros with high concentrations of construction-related positions also have high location quotients, a metric that compares the concentration of an industry within a specific area with the nationwide concentration of the same industry.
While smaller metros rank higher in terms of opportunities and job concentration, larger metros remain more attractive options for construction talent in terms of annual wages. The top metros for construction salaries include major metro areas such as New York (average annual salary of $75,200), Chicago ($74,550), and Seattle ($74,550). California, while not placing many metros on Point2Homes’ overall ranking for best metros for construction work, features several metros (San Jose, San Francisco, Los Angeles, and San Diego) with the highest average salary for industry workers. However, these metros also have the highest costs of living. Larger metros also ranked higher in terms of the overall count of construction jobs, according to Point2Homes.
According to Point2Homes, 27 metros experienced an increase in building permits of more than 50% in the first half of 2022 compared with the same time period in 2021. Hickory, North Carolina; Worcester, Massachusetts; Hilton Head Island, South Carolina; Chico, California; Wichita, Kansas; Gainesville, Georgia; Pittsburgh; and Salem, Oregon, all experienced over 100% growth in permits issued in the first half of 2022 compared with the first half of 2021. In terms of the total number of permits issues, Dallas and Houston experienced the largest growth compared with 2021. Thirty-nine metros, including Philadelphia; Cincinnati; Nashville, Tennessee; San Francisco; New Orleans; and Miami, have issued fewer building permits in the first half of 2022 than they did in the first half of 2021.
To compile its rankings, Point2Homes only considered metros with more than 1,000 permits issued in the first half of 2022. The eight indicators selected to identify the most dynamic metros were weighted and used to rank the 146 qualifying metros.
