The housing industry's ongoing shortage of skilled labor, coupled with persistent inflation, has continued to fuel rapid wage growth for residential building workers. In June 2024, average hourly earnings for these workers reached their highest point in more than five years.

According to the Bureau of Labor Statistics, residential building workers earned an average of $32.28 per hour in June, up from $29.62 a year earlier. This represents a substantial increase compared to other industries, with wages 16.2% higher than manufacturing and 10.6% higher than transportation and warehousing.

However, the demand for construction labor has begun to soften as interest rates remain high. The number of open construction jobs declined to 295,000 in June. Despite this, the skilled labor shortage continues to be a significant challenge for the construction sector.