Latest Posts:
Tag

Construction

Browsing
In Research & Trends

Residential Construction Employment Concentrated in Rural and Smaller-Market Counties – Eye

No Comments


Residential construction employment continued to soften in recent months, reflecting elevated interest rates, ongoing affordability challenges, and slower home building activity. Over the last 12 months, residential construction employment has shed a net of 48,800 jobs, marking the fifteenth consecutive annual decline and the longest stretch of annual losses since the Great Recession. Despite these nationwide job losses, residential construction remains a significant source of local employment in many markets.

NAHB analysis of county-level data shows that the industry’s employment footprint is particularly large in rural and smaller-market counties, where home building accounts for a greater share of total employment than it does nationally.

The Concentration of Residential Construction Employment

To better understand the local concentration of residential construction employment, this analysis uses location quotients (LQ), published by the U.S. Bureau of Labor Statistics (BLS). An LQ compares an industry’s share of local employment with its share nationally. In the context of residential construction, an LQ greater than 1.0 indicates that home building accounts for a larger share of the local economy than it does nationally.

Using December 2025 BLS data, county-level estimates reveal substantial geographic variation in residential construction employment across the United States.

Counties with an LQ below 1.0 had a smaller residential construction employment share than the national share. These counties were concentrated in the South and Great Plains. Louisiana had the largest share of counties below the national share, at 97.1%, followed by Mississippi (92.3%), Oklahoma (87.1%), Alabama (86.8%), and Kansas (82.6%).

Counties with an LQ above 1.0, by contrast, were more concentrated in the West. Hawaii and Delaware each had all their counties above the national share, followed by Oregon (92.6%), Washington (91.3%), Utah (89.5%), Alaska and Vermont (both at 87.5%), Idaho (77.8%), Wyoming (76.9%), and California (75.6%). Overall, nearly three-quarters (74.6%) of counties in Western states had LQ values above 1.0. Average LQ values reached as high as 2.94 in Wyoming and 2.88 in Utah, underscoring the outsized role residential construction plays in many western economies.

Counties with an LQ equal to 1.0 were rare, representing only six counties, or approximately 0.4% of the sample. These counties include Fresno County, California; Lawrence County, Ohio; Isabella County, Michigan; Brown County, South Dakota; and Milam and Polk Counties, Texas. In these counties, local residential construction employment concentration precisely mirrored the national share.

Residential Construction Concentration by HBGI Category

The geographic patterns become even clearer when counties are grouped by NAHB’s Home Building Geography Index (HBGI). Residential construction generally plays a larger role in rural and suburban markets, while large metro core counties show relatively lower employment concentration because their economies are more diversified and less dependent on home building activity.

Among the seven HBGI categories, non-metro/micro counties recorded the highest concentration of residential construction employment, with an average LQ of 1.48. Of the 286 counties in this category, 139 counties, or 48.6%, had residential construction employment shares above the national share. These higher-concentration counties showed an exceptionally strong average LQ of 2.40.

Suburban counties also posted relatively high concentrations of residential construction employment. Large metro outlying counties ranked first in the share of counties exceeding the national share, with 57.8% of counties posting an LQ above 1.0 and an overall average LQ of 1.30. Large metro suburban counties followed closely, with an average LQ of 1.19 and 56.8% of counties above the national share.

By comparison, large metro core counties recorded the lowest residential construction employment concentration, with an average LQ of just 0.81. Only 33.9% of counties in this category exceeded the national share, and the highest observed LQ was 2.01, with no counties reaching an LQ of 4.0. Small metro core counties showed a similarly modest concentration, with an average LQ of 0.98 and only 36.0% of counties above the national share.

Overall, these findings highlight the uneven geography of residential construction employment. While large metropolitan cores have broader and more diversified labor markets, rural communities and outlying suburban counties remain more reliant on home building as a source of local jobs.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Residential Construction Spending Increases in May Due to Remodeling – Eye On Housing

No Comments


Private residential construction spending rose modestly in May 2026, marking the third consecutive month of gains, albeit at a slower pace. According to the latest construction spending data from the U.S. Census Bureau, private residential construction spending came in at a seasonally adjusted annual rate (SAAR) of $930.2 billion in May, up 0.3% from April and up 1.8% from a year ago.

The increased spending was driven by improvement (remodeling) spending, which was the only residential sector that posted a monthly increase. Remodeling spending rose 0.9% over the month and 8.1% over the year. Single-family construction spending decreased 0.1% in May, consistent with the weak builder sentiment reflected in the NAHB/Wells Fargo Housing Market Index (HMI); on a yearly basis, single-family spending is down 4.0%. Multifamily construction spending also edged down 0.1% from April, though it is up 3.3% from a year ago.

The NAHB construction spending index is shown in the graph below. The index illustrates how spending on single-family construction has slowed since early 2024, reflecting the impacts of elevated interest rates and ongoing uncertainty over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in June 2023, with the index largely plateauing since late 2024. In contrast, improvement spending has been on an upward trend since the beginning of 2025, supported in part by the aging housing stock and sustained demand for renovation. 

Spending on private nonresidential construction was down 0.3% in May and down 6.6% from a year ago. Meanwhile, spending on data centers is still increasing, albeit at a slower pace, up 0.6% month-over-month and 23% year-over-year.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Construction Job Openings Increase – Eye On Housing

No Comments


The number of open positions in the construction sector increased in May, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing. Recent gains for nonresidential construction have increased demand for construction labor, although they have not fully offset the weakness present in the residential construction sector.

The number of open jobs for the overall economy was flat in May, remaining near 7.59 million. The May reading was also measurably higher compared to a year ago (7.31 million). The recent increase in job openings for the overall economy indicates that the labor market remains on solid footing, despite concerns over headline risk and AI.

The number of open construction sector jobs increased for the month, rising slightly from 266,000 in April to 298,000 in May. This total was higher than the total from a year ago (222,000). The chart below notes a declining trend followed by a new range for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened. While home building employment has declined over the last year, other subsectors of the construction industry have expanded (e.g. data center construction). This has produced volatility within a lower range in the job openings series since 2024.

The construction job openings rate increased to 3.5% in May, up from the 2.6% rate estimated a year ago.

The layoff rate in construction increased to 2.1% in May. The quits rate fell back 1.3% for the month.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Housing Starts Weaken in May as Multifamily Construction Slows – Eye On Housing

No Comments


Housing starts fell sharply in May, driven by a steep drop in multifamily construction. Meanwhile, single-family buildings also slipped amid high interest rates, rising construction costs and ongoing labor shortages.

Overall housing starts decreased 15.4% in May to a seasonally adjusted annual rate of 1.18 million units, according to a report from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau. This pace reflects the number of housing units builders would begin over the next 12 months if May’s activity was sustained.

Within the total, single-family starts decreased 1.9% to an 882,000 seasonally adjusted annual rate and were down 6.7% compared to May 2025. On a year-to-date basis, single-family starts are down 6.3%. The three-month moving average fell to 933,000 units. Multifamily starts, which include apartment buildings and condominiums, dropped 40.2% from April to May to a 295,000-unit annualized pace and were down 14.2% compared to May 2025.

Regionally, on a year-to-date basis, combined single-family and multifamily starts were 17.5% higher in the Northeast, 4.1% lower in the Midwest, 1.6% lower in the South, and 4.9% lower in the West. For single-family starts, the Midwest has shown resilience, with starts holding steady on a year-to-date basis, while the Northeast, South, and West continue to post declines.

Overall permits decreased 0.7% to a 1.41-million-unit annualized rate in May. Single-family permits increased 0.6% to an 886,000-unit rate but remained 1.8% below their May 2025 level. Multifamily permits decreased 2.8% to a 527,000-unit annualized pace but were up 2.5% compared to May 2025.

Looking at regional permit data on a year-to-date basis, permits were 10% higher in the Northeast, 2.4% higher in the Midwest, 6.7% lower in the South, and 0.1% higher in the West.

The total number of housing units under construction stood at 1.27 million in May, down 7.1% from a year earlier. Single-family homes under construction totaled 587,000, a 5.9% year-over-year decline. Multifamily units under construction fell to 679,000, down 8.1% from a year ago and well below the peak of more than 1 million units reached in December 2023.

Housing completions also continued to soften. Single-family completions fell to an annual rate of 872,000 units, down 16.8% from a year earlier. Multifamily completions for buildings with five or more units declined 8.4% year over year to a 426,000-unit pace.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Highest Paid Occupations in Construction in 2025 – Eye On Housing

No Comments


The median wage of payroll workers in construction was $61,370 in 2025, with the top 25% earning at least $83,480. In comparison, the U.S. median annual wage was $50,980, while workers in the top quartile (the highest paid 25%) earned at least $80,520. These estimates come from the latest release of the Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) and do not include premium pay (stock and year-end bonuses, overtime pay, weekend premium pay, etc.).

The OEWS publishes wage data for nearly 400 occupations in construction. Of these, only 46 are construction trades. The remaining workers are in finance, sales, administration, and other off-site activities.

In 2025, the highest-paid occupation in construction was Chief Executive Officer (CEO). Half of CEOs earned more than $198,000 in straight-time wages, and the top 25% earned over $312,000. CEOs in construction also had the widest pay scale spread in the industry, measured as the percentage difference between pay at the bottom and top quartiles. The highest-paid 25% of CEOs earned more than 2.6 times as much as those in the lowest-paid quartile. This wide scale likely reflects a broader range of responsibilities and differences in operational scope.

Lawyers working in construction ranked second, with a median annual wage of about $190,000. Lawyers in the top quartile earned at least $242,000, or 1.9 times more than lawyers in the lowest-paid quartile. This is also a relatively wide pay scale for the industry, reflecting differences in responsibilities and diverse opportunities for career advancement among lawyers in construction.

Of the twenty-five highest-paid occupations in construction, sixteen were managerial roles. The highest-paid managers in the industry were architectural and engineering managers, with half earning more than $163,290 and the top 25% earning over $201,300 annually. Architectural and engineering managers also stand out for having a narrower salary range. Only computer and information systems (CIS) managers and human resources (HR) managers had similarly narrow pay ranges among construction managers.

Among construction trades, elevator installers and repairers remained at the top of the median-wage list, with half earning over $113,710 a year and the highest 25% making at least $136,320. This is the only construction trade that made the industry’s overall top 20 highest-paid occupations list.

First-line supervisors of construction trades are next on the trade list with a median wage of $80,000, and the top 25% earning at least $101,220.

In general, construction trades that require more years of formal education tend to offer higher annual wages. The median wage of construction and building inspectors was $74,460, and the top quartile was $95,290. This is also a trade with a relatively wider pay scale, with the top 25% earning at least 66% more than the bottom quartile, potentially reflecting greater variance in educational attainment, professional responsibilities, and expertise of building inspectors.

Carpenters are one of the most prevalent skilled trades in the construction industry. The occupation typically requires less formal education than many other professions, yet carpenters working in construction still earn wages well above the national median for all occupations. In 2025, half of carpenters earned more than $60,950 annually, while the top 25% made at least $77,390.

Plumbers and electricians, trades that typically require specialized training and licensing, had even higher annual wages. The median wage of plumbers in construction was $63,270, with the top quartile making over $83,360. Electricians’ wages are similarly high.

Terrazzo workers and pile-driver operators, fourth and fifth on the highest-paid trade list, registered especially wide wage ranges. The top 25% of pile-drivers earned at least $106,660, more than 80% above the earnings of the bottom quartile. This broad pay scale presumably reflects a greater variety of opportunities and geographic locations (including offshore rigs), as well as differences in technical expertise and training. Some pile-driving equipment comes with computerized controls and requires additional knowledge of electronics.

In contrast, solar photovoltaic installers, a relatively new construction trade, had a much narrower pay scale. The difference between the annual pay of the top 25 percent ($67,970) and the bottom quartile ($47,880) was 42%, likely reflecting less variation in expertise, training, and geographic prevalence.

Typically, construction trades that require less skill not only offer lower wages but also have less variation. Apprentice workers (helpers of painters, plumbers, electricians, roofers, carpenters, and other construction trades) illustrate this point. These are the six lowest-paid construction occupations that simultaneously show the narrowest variation. For example, the highest-paid quartile of carpenters’ helpers made at least $49,420 a year, while the bottom quartile earned at most $36,750, a 34% difference.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Slight Increase for Construction Job Openings – Eye On Housing

No Comments


The number of open positions in the construction sector edged higher in April, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing. Recent gains for nonresidential construction have not fully offset soft conditions for housing with respect to the demand for construction labor.

The number of open jobs for the overall economy surged in April, increasing from 6.89 million in March to 7.62 million. The April reading was also measurably higher compared to a year ago (7.10 million). It will be worth watching next month to see if these preliminary estimates stand, as the data suggests strength for labor demand, particularly in the professional and business service sectors.

The number of open construction sector jobs increased for the month, rising slightly from 234,000 in March to 259,000 in April. This total was higher than the total from a year ago (207,000). The chart below notes a declining trend followed by stability for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened. While home building employment was declining during the second half of 2025, other subsectors of the construction industry have expanded (e.g. data center construction). This has produced volatility within a reduced range in the job openings series since 2024.

The construction job openings rate increased to 3% in April, up from the 2.4% rate estimated a year ago.

The layoff rate in construction declined slightly to 1.5% in April. The quits rate was unchanged at 1.7% for the month.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Single-Family Construction Slips Across All Geographies – Eye On Housing

No Comments


Single-family construction declined across all geographies in the first quarter of 2026, according to the latest Home Building Geography Index (HBGI), as elevated interest rates, rising material costs, and labor shortages slowed home building activities at the start of the year. Meanwhile, multifamily construction remained broadly resilient, posting growth in most markets.

Single-Family

The pullback in single-family activity was sharpest in large metro core counties, which recorded a 16.0% year-over-year decline on a four-quarter moving average (4QMA) basis — a deterioration of 3.2 percentage points from the prior quarter. More broadly, single-family construction in non-rural areas, which are counties within a metro area, fell 9.2%.

These declines are part of a longer-term structural shift away from dense population centers. Large metro core counties have shed an average of 0.1 percentage points of single-family market share every quarter for the past decade, with the pace accelerating after the pandemic. In Q1 2026, large metro cores accounted for just 14.7% of single-family permits — down 1.3 percentage points from a year earlier and 4.1 percentage points below their Q1 2016 share. Large metro suburban counties have similarly lost 3.3 percentage points of market share over the past decade.

The gains have flowed to smaller and outlying markets. Outlying counties in small metros recorded the largest increase, gaining almost two percentage points compared to a decade ago and 0.7 percentage points relative to Q1 2025 to capture 10.8% market share.

Multifamily

Multifamily construction told a different story in Q1 2026, expanding across most geographies. Large metro core counties led the way with 20.8% growth (4QMA), picking up pace after returning to positive territory in the prior quarter. Construction in non-rural counties grew 10.5% overall.

Markets with negative growth were large metro outlying counties, which fell 24.6%, and micro counties, which edged down 0.6%. Both had posted consistent growth throughout 2025 and appear to be normalizing. Rural counties, in general, saw multifamily growth slow sharply, from 11.4% in the previous quarter to just 1.8%.

On the market share front, large metro core had the largest multifamily share increase by 3.2 percentage points to 36.5%. Meanwhile, large metro outlying counties saw the largest decline, dropping 1.6 percentage points over the year to 3.1%.

Over a longer horizon, multifamily market share has migrated slowly but steadily from large metro core counties to smaller metro core counties, with the former losing 8.6 percentage points and the latter gaining 5.1 percentage points over the past decade. However, since last year, large metro core counties have steadily regained market share as demand for rental housing remains strong.

The first quarter of 2026 HBGI data along with an interactive HBGI map can be found at https://nahb.org/hbgi.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Private Residential Construction Spending Increases in April – Eye On Housing

No Comments


Private residential construction spending was up 0.8% in April 2026, following the monthly gain of 0.6% in March. This increase was largely driven by gains in single-family, and home improvement spending. Moreover, total private residential construction spending was 1.7% higher than a year ago. 

According to the latest construction spending data from the U.S. Census, single-family construction spending increased 1.4% in April, consistent with the steady builder confidence reflected in the NAHB/Wells Fargo Housing Market Index (HMI). Despite the monthly gain, single-family construction spending was down 2.9% over a year ago. Improvement spending (remodeling) also increased in April, rising 0.4% for the month. Remodeling remained a bright spot on a year-over-year basis, with spending up 7.5% from April 2025. Meanwhile, multifamily construction spending edged down 0.3% in April. This marks the first monthly decrease after two consecutive months of modest gains. Compared to a year earlier, multifamily spending was 1.1% higher.  

The NAHB construction spending index is shown in the graph below. The index illustrates how   spending on single-family construction has slowed since early 2024, reflecting the impacts of elevated interest rates and ongoing uncertainty over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in July 2023, with the index largely plateauing since late 2024. In contrast, improvement spending has been on an upward trend since the beginning of 2025, supported in part by the aging housing stock and sustained demand for renovation. 

Spending on private nonresidential construction was down 2.1% over a year ago. The annual private nonresidential spending decrease was driven by a $41.8 billion drop in manufacturing construction spending



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

First Quarter 2026 Multifamily Construction Data – Eye On Housing

No Comments


According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased year-over-year during the first quarter of 2026. For the quarter, 107,000 multifamily residences started construction. Of this total, 103,000 were built-for-rent. This built-for-rent total was 21% higher than in the first quarter of 2025. Prior NAHB analysis suggests this expansion primarily occurred in smaller metro areas and lower density markets, given ongoing weakness in urban core areas.

The market share of rental units of multifamily construction starts was 96% for the first quarter. A historical low market share of 47% for built-for-rent multifamily construction was set during the third quarter of 2005, during the condo building boom. An average share of 80% was registered during the 1980-2002 period.

For the first quarter, there were 4,000 multifamily condo unit construction starts, down significantly from a year ago (7,000) given ongoing housing affordability challenges.

An elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-Great Recession period. According to the first quarter 2026 data, the average square footage of multifamily construction starts declined to 1,047 square feet. The median, or typical unit, posted a large decline to 960 square feet, the lowest on record. These measures are consistent with the elevated share of multifamily built-for-rent construction.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Custom Home Building – A Bright Spot for Construction – Eye On Housing

No Comments


With overall single-family construction down 5% for the first four months of 2026, custom home building has been a relative bright spot. The custom building market is less sensitive to the interest rate cycle than other forms of home building but is more sensitive to changes in household wealth and stock prices. With spec home building down and the stock market up, custom building has expanded its market share.

According to NAHB’s analysis of Census data from the Quarterly Starts and Completions by Purpose and Design survey, there were 36,000 total custom building starts during the first quarter of 2026. This is up 3% relative to the first quarter of 2025.

For the last four quarters, custom single-family housing starts totaled 188,000 homes, a 3% increase compared to the prior four quarter period (182,000).

Currently, the market share of custom home building, based on a one-year moving average, is 20% of total single-family starts. This is down from a prior cycle peak of 31.5% set during the second quarter of 2009 and the 21% recent peak rate at the beginning of 2023, after which spec home building gained some market share.

Note that this definition of custom home building does not include homes intended for sale, so the analysis in this post uses a narrow definition of the sector. It represents home construction undertaken on a contract basis for which the builder does not hold tax basis in the structure during construction. This form of home building is almost universally undertaken by smaller, private home builders.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
Load More
Pin It