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Immigrants’ share of the construction workforce reached a record high in 2024, with foreign-born workers accounting for more than a quarter of the industry’s labor force (26.3%). The share is even higher among construction trades, for which one in three craftsmen is foreign-born. In several states, reliance on foreign-born labor is especially pronounced: immigrants make up more than 40% of the construction workforce in California and Florida, 39% in Texas, and 38% in Nevada.

According to the government’s occupational classification system, the construction industry employs workers across roughly 390 occupations. Of these, only 28 are construction trades, yet these workers account for about 60% of the total construction labor force. The remaining workers are in finance, sales, administration, and other off-site roles.

The concentration of immigrants is particularly high in key construction trades essential to home building, including drywall and ceiling tile installers (57%), plasterers and stucco masons (56%), roofers (53%), painters (53%), and carpet, floor, and tile installers (51%).

The two most prevalent construction occupations, laborers and carpenters, account for more than a quarter of the industry’s labor force. Among them, 35% of carpenters and 43% of construction laborers are foreign-born. These trades typically require less formal education, yet such workers consistently rank among those with the most severe labor shortages, according to the NAHB/Wells Fargo Housing Market Index (HMI) and NAHB Remodeling Market Index (RMI) surveys.

In the April 2025 HMI survey, more than half of builders reported either some or a serious shortage of workers performing finished carpentry. Shortages are similarly widespread for other construction trades directly employed by builders, such as bricklayers and masons, despite the relatively high share of immigrant workers in these occupations.

Labor shortages are also common among more technical trades such as electricians, plumbers, and HVAC technicians. In contrast to labor-intensive trades, these occupations typically require longer formal training, often involve professional licensing, and tend to attract fewer immigrant workers. Over 40% of surveyed builders reported deficits in these skilled trades.

The reported craftsmen shortage is somewhat less acute for trades where the foreign-born presence is more pronounced, such as drywall, ceiling, flooring installers, painters, and roofers – the trades where immigrants make up more than half of the workforce.

More than half (52%) of the nation’s three million immigrant construction workers reside in the four most populous states – California, Texas, Florida, and New York. California and Texas each have over half a million foreign-born construction workers; together, these states account for roughly one-third of all immigrant workers in the industry. Florida and New York contribute an additional 19% combined.

These states are not only the largest by population but also longstanding immigrant gateways, making them particularly reliant on foreign-born construction labor. Immigrants comprise 42% of the construction workforce in California and 41% in Florida, followed by 39% in Texas and 37% in New York.

At the same time, reliance on foreign-born labor is expanding beyond these traditional hubs. Nevada, for example, recorded the fourth-highest share of immigrant construction workers in 2024 (38%), closely trailing Texas. Maryland and New Jersey also reflect this broader trend, with immigrants accounting for 37% of the construction labor force in each state.

In Connecticut, Massachusetts, Georgia, Virginia, Illinois, Arizona, and North Carolina, more than one-quarter of construction workers are foreign-born. At the other end of the spectrum, several states, including New Hampshire, Montana, Alaska, West Virginia, and Vermont, have immigrant shares below 5%.

Because immigrant workers are disproportionately concentrated in construction trades, their presence among craftsmen exceeds their overall share of the industry in every state. In California and Texas, immigrants account for more than half of all construction tradesmen. In Florida, Maryland, and Nevada, the shares are similarly elevated, approaching 50%, while in New Jersey and New York, more than 45% of craftsmen are foreign-born.

While most states draw most of their immigrant foreign-born workers from the Americas, Hawaii relies more heavily on Asian immigrants. European immigrants are a significant source of construction labor in New York, New Jersey, and Illinois.



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


Private residential construction spending declined 0.8% in January 2026, following two months of gains. This decline was driven by lower spending across single-family, multifamily construction, and home improvement.  Despite the monthly decline, total residential construction spending remained 2.3% higher than a year ago.

According to the latest construction spending data from the U.S. Census, single-family construction spending edged down by 0.2% in January, consistent with the softer builder confidence reflected in the NAHB/Wells Fargo Housing Market Index (HMI). Compared to a year ago, single-family construction spending was down 5.8%. Meanwhile, multifamily construction spending also decreased mildly, falling 0.7% in January. This marks the second monthly decrease following six consecutive months of modest gains. Compared to a year earlier, multifamily spending was 0.4% higher. Improvement spending (remodeling) declined 1.4% for the month but remained a bright spot on a year-over-year basis, rising 12.5%.

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 3% over a year ago. The annual private nonresidential spending decrease was primarily driven by a $35 billion drop in manufacturing construction spending, followed by a $0.8 billion decrease in commercial construction spending.



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


The number of open positions in construction in February was down year-over-year, 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. However, 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 declined in February, falling from 7.24 million in January to 6.88 million in February. The February reading was down from a year ago (7.24 million) due to a cooling labor market.

Previous NAHB analysis indicated that this number had to fall below eight million on a sustained basis for the Federal Reserve to move forward on interest rate reductions. With estimates remaining below eight million for national job openings, the Fed, in theory, should be able to cut further.

The number of open construction sector jobs fell, declining slightly from 230,000 in January to 202,000 in February. This total was down compared to a year ago (255,000). The chart below notes the declining trend that has been in place 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 centers). This has produced volatility within a reduced range in the series since 2024.

The construction job openings rate decreased to 2.4% in February, down from the 3% rate estimated a year ago.

The layoff rate in construction declined slightly to 1.8% in February. The quits rate decreased to 1.3% for the month.

The current data looks similar to the much discussed low-hire, low-fire labor market paradigm.



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


According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased year-over-year during the fourth quarter of 2025. For the quarter, 96,000 multifamily residences started construction. Of this total, 91,000 were built-for-rent. This built-for-rent total was 18% higher than in the fourth quarter of 2024. This marks a significant increase, and it is possible these numbers will be revised lower in future Census data given other multifamily data reporting.

The market share of rental units of multifamily construction starts was 95% for the fourth 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 fourth quarter, there were 6,000 multifamily condo unit construction starts, flat from a year ago.

An elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-Great Recession period. According to the fourth quarter 2025 data, the average square footage of multifamily construction starts increased to 1,068 square feet. The median increased to 1,048 square feet. 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. .


While not a huge jump, 2025 featured the highest construction volume for multifamily missing middle housing starts.

The missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties. The multifamily segment of the missing middle (apartments in 2- to 4-unit properties) has generally disappointed since the Great Recession.

For the fourth quarter of 2025, there were 5,000 2- to 4-unit housing unit construction starts. This was flat compared to the fourth quarter of 2024.

Over the course of 2025, there were 19,000 such starts, up 6% compared to 2024 (18,000). Nonetheless, this subsector of residential construction continues to underperform relative to its potential, due in part to zoning restrictions.

As a share of all multifamily production, 2- to 4-unit development was just 5% of total multifamily development for the fourth quarter. This remains lower than recent historical trends. From 2000 to 2010, such home construction made up a little less than 11% of total multifamily construction.

Construction of the missing middle has clearly lagged during the post-Great Recession period and will continue to do so without zoning reform focused on light-touch density.



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


The number of open positions in construction in January was flat year-over-year, 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. However, recent gains for nonresidential construction combined with soft conditions for housing have left the number of job openings in construction flat.

The number of open jobs for the overall economy increased in January, rising from 5.83 million in December to 6.20 million in January. The January reading was down from a year ago (6.55 million) due to a slowing labor market.

Previous NAHB analysis indicated that this number had to fall below eight million on a sustained basis for the Federal Reserve to move forward on interest rate reductions. With estimates remaining below eight million for national job openings, the Fed, in theory, should be able to cut further.

The number of open construction sector jobs was relatively flat, declining slightly from 245,000 in December to 231,000 in January. This total was flat compared to a year ago (232,000). The chart below notes the declining trend that has been in place 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 centers).

The construction job openings rate decreased to 2.7% in January, equal to the 2.7% rate estimated a year ago.

The layoff rate in construction declined to 1.0% in January. The quits rate decreased to 1.7% for the month.



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


Final data for 2025 reveal relatively flat conditions for townhouse construction volume in a year that saw broad-based declines for single-family home building.

Townhouse construction ended 2025 with a soft quarter. According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the fourth quarter of 2025, single-family attached starts totaled 38,000. Despite recent gains, this was the weakest quarter for the sector since the start of 2023.

Over the course of 2025, townhouse construction starts totaled 173,000 homes, effectively flat compared to 2024 (174,000). Townhouses made up more than 17% of all of single-family housing starts for the fourth quarter of the year.

Using a one-year moving average, the market share of newly-built townhouses stood at 18.4% of all single-family starts for the third quarter. In the third quarter of 2025, the four-quarter moving average market share was the highest on record for data going back to 1985.

Prior to the current cycle, the peak market share of the last two decades for townhouse construction was set during the first quarter of 2008, when the percentage reached 14.6% on a one-year moving average basis. This high point was set after a fairly consistent increase in the share beginning in the early 1990s.

The long-run prospects for townhouse construction are positive given growing numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities. Where it can be zoned, it can be built.



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


Private residential construction spending was up 1.5% for the last month of 2025. This modest gain was driven primarily by increased spending on home improvements and single-family construction. Despite this increase, total spending remained 1.3% lower than a year ago, reflecting the continued impact of housing affordability challenges facing the sector.

According to the latest construction spending data from the U.S. Census, single-family construction spending was up by 1.6% in December, consistent with the soft builder confidence reflected in the NAHB/Wells Fargo Housing Market Index (HMI). Compared to a year ago, single-family construction spending decreased 3.6%. Meanwhile, multifamily construction spending edged up 0.1% in December, marking a seventh consecutive month of modest gains. Compared to a year earlier, multifamily spending was 2.9% higher. Improvement spending (remodeling) rose 1.8% for the month but stayed flat relative to 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 under the pressure of elevated interest rates and concerns 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.

Spending on private nonresidential construction was down 1.8% over a year ago. The annual private nonresidential spending decrease was primarily driven by a $26 billion drop in manufacturing construction spending, followed by a $2 billion decrease in healthcare construction spending.



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



Construction and design professionals are heading into 2026 with a cautiously optimistic perspective, according to the Q1 2026 U.S. Houzz Pro Industry Barometer. Many firms anticipate stable demand and growth opportunities for the year, but ongoing cost pressures, labor constraints and broader economic uncertainties are prompting businesses to adjust strategies to protect margins.

A majority (56%) of firms in the construction sector are expecting a good to very good year, 28% are anticipating stable conditions, and 16% foresee weaker performance than in 2025. In the architectural and design services sector, half (50%) expect a strong year, 35% report a neutral outlook and 15% anticipate declines in business performance.

Construction firms’ expectations are more subdued for the first quarter of 2026 — after a softening in late 2025 — than for the year overall. Architecture and design firms are on a stronger footing in the first quarter of 2026, buoyed by increased business activity in the fourth quarter of 2025.

“Construction and design businesses are heading into 2026 with a measured but resilient outlook,” says Marine Sargsyan, head of economic research at Houzz. “While expectations for the broader national economy remain subdued, and cost and labor pressures persist, many firms anticipate stable demand for their projects. To drive revenue growth in 2026, businesses are adjusting their strategies by raising prices, prioritizing larger and higher-value projects and investing in employee productivity, reflecting broader industry interest around AI-enabled software tools such as Houzz Pro.”



This article was originally published by a www.houzz.com . Read the Original article here. .


Private residential construction spending was up 1.3% in October, rebounding from a 1.4% decline in September 2025. This modest gain was primarily driven by increased spending on home improvements. Despite this increase, total spending remained 1.3% lower than a year ago, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates.

According to the latest U.S. Census construction spending data, single-family construction spending declined 1.3% in October, consistent with the soft builder confidence reflected in the NAHB/Wells Fargo Housing Market Index (HMI). Compared to a year ago, single-family construction spending decreased by 6.1%. Meanwhile, multifamily construction spending edged down 0.2% in October after four consecutive months of modest gains. Compared to a year earlier, multifamily spending was still down 2.8%. Improvement spending (remodeling) rose 4.5% for the month and was up 4.4% compared to 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 under the pressure of elevated interest rates and concerns 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.

Spending on private nonresidential construction was down 2.6% over a year ago. The annual private nonresidential spending decrease was primarily driven by a $23 billion drop in manufacturing construction spending, followed by a $3.8 billion decrease in commercial construction spending.



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

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