Hardware Retailing The Industry's Source for Insights and Information
Strong labor market growth continued to put pressure on the nation’s housing supply in 2024, as homebuilding activity did not fully keep pace with demand driven by job gains. Comparing net new jobs with prior-year permitting activity displays whether the pace of housing construction is keeping up with potential household formation and broader economic growth.
An analysis from the National Association of Home Builders (NAHB) looks at net new jobs created in 2024 measured against housing permits issued in 2023, reflecting the typical time required for permitted units to move through the construction pipeline and reach the market.
Using this framework, the U.S. economy added around 1.8 million net new jobs in 2024 relative to 2023, while total housing permits issued in 2023 reached 1.51 million units. This results in an overall jobs-to-permits ratio of 1.2, indicating that the economy added 1.2 new jobs for every housing unit authorized.
Single-Family Construction
With 975,584 single-family permits issued in 2023, the jobs-to-single-family permits ratio reached 1.84, meaning nearly two new jobs were created for every single-family permit authorized. This elevated ratio points to ongoing supply constraints in the owner-occupied housing market, where higher construction costs, elevated mortgage rates, labor shortages and limited lot availability have continued to restrain new home production.
Because of the housing restraints, instead of moving, a significant portion of prospective buyers are choosing to renovate their current homes for cost savings, opening opportunities for independent stores to adapt inventory toward smaller DIY repair projects rather than large-scale, move-in remodels.
