With federal funding for infrastructure projects surging since 2021, the construction industry has seen more than $550 billion allocated for projects across the U.S., ranging from transportation to broadband and clean water systems. While these investments have created substantial opportunities in construction, workers in California are facing a stark reality: homeownership is increasingly out of reach.

The combination of soaring home prices and stagnating wages has made it difficult for many construction workers to afford homes in the cities where they work. Despite the high demand for labor, real earnings for construction workers have dropped by over 10% since peaking in 2020. As of April 2024, the average weekly wage for full-time construction workers was $1,007, significantly below its 2020 high of $1,112, adjusted for inflation.

At the same time, the housing market has seen unprecedented price increases. The median home sales price in California hit $412,000 in Q2 2024—30% higher than just four years ago. Coupled with high mortgage interest rates, monthly payments for a median-priced home are now around $2,193, nearly double what they were in mid-2020.

As a result, California construction workers would need to work 101 hours a week to afford a median-priced home, a challenge that exacerbates the industry's struggle to attract new talent. With an ongoing shortage of skilled workers, the construction industry is expected to need an additional 454,000 workers by 2025 to keep pace with the demand, according to the Associated Builders and Contractors.

The mismatch between wages and home affordability poses a serious issue for the industry's future.

From the perspective of ConstructionOwners.com, the growing disparity between construction wages and home affordability presents a critical challenge for the long-term sustainability of the industry. As developers and project owners, we rely on a stable, skilled workforce to deliver the infrastructure and buildings that drive economic growth. However, when construction workers themselves are unable to afford homes in the communities they help build, it creates a retention and recruitment issue that could further exacerbate labor shortages. Addressing this affordability crisis is essential not only for workers’ well-being but also for the continued success of construction projects across California and beyond. By advocating for fair wages, affordable housing initiatives, and workforce development programs, we can build a stronger, more resilient industry that benefits both workers and owners alike.