Wages on the Rise, But Builders Still See Labor Shortage
The average annual pay for residential building construction was $50,806 in 2015, according to data from the Bureau of Labor Statistics. That number is 19% higher than in 2010, when the wages hit the lowest level after the Great Recession.
Despite these rising wages, a near-record 56% of builders are reporting a labor shortage; up from 21% in 2012. 72% of builders are reporting the greatest need for labor is for carpenters, with framing crews a close second. Builders that use subcontractors show similar shortages.
The labor shortage has not only produced increased wages, but a majority of homebuilders are forced to raise home prices and having difficulty completing projects on time.
The greatest wage growth is shown to be occurring in high-growth areas throughout the country, with Minnesota showing a 20-30% increase.