High mortgage rates aren’t the only reason homeownership remains out of reach for many Americans.
Behind the scenes, homebuilders are grappling with an overlooked challenge — a shortage of skilled workers — that is slowing construction and making it harder to reduce the nation’s housing deficit.
Manufacturers say the labor shortage is creating a ripple effect across the world. housing marketdelaying projects, increasing construction costs and limiting the number of new housing units coming online at a time when demand continues to outstrip supply.
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The NAHB estimates that government regulations add nearly $132,000 to the price of a typical new home. (Matthew Busch/Bloomberg/Getty Images / Getty Images)
“Labor is one of the largest and most expensive inputs when it comes to residential production and land development,” Jim Tobin, president and CEO of the National Association of Home Builders, told Fox News Digital.
He said that every month the construction sector is short about 250,000 workers.
“There was a shortage of up to 400,000 jobs when we were really cooking a few years ago,” Tobin said, adding that the labor shortage “is an ongoing shortage.”
And the industry’s labor needs are only expected to increase in the years to come.
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Housing industry leaders say states that have prioritized housing construction are better positioned to handle population growth and economic expansion. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
A recent Institute of Home Builders and the National Association of Home Builders report estimates builders will need about 723,000 new workers each year to keep pace with demand and help close the nation’s 1.5 million housing deficit.
The shortage is already affecting how quickly housing can be built. According to Ed Brady, president and CEO of the Home Builders Institute, labor constraints extend construction times and drive up costs.
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“This shortage adds almost two additional months to lead times, inflating costs and delaying delivery,” Brady told Fox News Digital.
Builders say that renewing the pool of specialized workers is only part of the solution.
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An “Open House” sign in front of a home for sale in the Woodland Hills neighborhood of Los Angeles, California, July 13, 2025. (Eric Thayer/Bloomberg/Getty Images / Getty Images)
Tobin said many construction jobs don’t require a four-year contract college degree and can offer stable middle-class careers, but the homebuilding industry has struggled for years to attract enough workers to replace retiring workers.
