The National Association of Home Builders (NAHB) reported that the labor market continues to tighten, especially for the construction industry. According to NAHB, the count of open construction jobs in October increased to 410,000 unfilled positions, the highest measure in the 21-year history of the data series. NAHB chief economist Rob Dietz said,“The housing market remains underbuilt and requires additional labor, lots and lumber and building materials to add inventory.”
Data analyzed by NAHB shows the job openings rate in construction surged to 5.4% in October, with 410,000 open positions in the sector. This is significantly higher than the 253,000 count recorded a year ago.
This dramatic rise in job openings once again confirms that the home building industry is experiencing a construction labor market crisis. As reported in the Fall 2021 HBI Construction Labor Market Report, the construction industry needs 2.2 million more workers to keep up with the booming demand for homes amid the labor shortage.
Access to mortgage credit and housing affordability is severely threatened by the lack of housing supply. The labor shortage is significantly exacerbating the shortage of homes for rent and for sale. The situation requires an industry-wide commitment to attract, train and retain a whole new generation of skilled workers in residential construction.