Hardware Retailing The Industry's Source for Insights and Information
A study released by the Home Builders Institute (HBI) in collaboration with the National Association of Home Builders (NAHB) revealed that the impact of labor shortages on the residential construction industry is significantly responsible for the lost production of many newly built homes.
Higher construction costs, longer building times and a decreasing supply of new homes worsen the housing affordability crisis and hinder economic growth, according to the study.
The study also notes concerns like an aggregate economic impact of $10.8 billion per year due to longer construction times, higher carrying costs as an impact of extended construction times and a reduction of around 19,000 single-family homes not built in 2024.
“This study underscores the urgent need for strategic interventions to address the skilled labor shortage,” says Dr. Robert Dietz, NAHB chief economist. “The economic implications are vast, affecting not only the home building industry but also the broader economy.”
