Residential construction workers are commanding more money, benefiting from a labor shortage and the effects of inflation.
The average hourly wage in June was $32.28, a 9% increase from June 2023 that represents the fastest annual growth rate since December 2018, according to Bureau of Labor Statistics data analyzed by the National Association of Home Builders.
In recent months, Carl Harris, chairman of the NAHB, has cited a lack of skilled labor as one of the obstacles homebuilders face — in addition to elevated mortgage rates.
Residential construction workers build single-family houses, townhouses, condominiums, apartments and mobile homes.
The June residential wage was roughly 16% higher than manufacturing’s average hourly earnings and 11% higher than transportation and warehousing, according to the federal data. But at $36.33 per hour, mining and construction workers still made 11% more than their residential construction counterparts.
Residential wages have modestly but steadily increased over the past 24 years, along with the cost of living. In June 2000, the average hourly earnings were $15.11. In the past five years, the construction pay has shot up 23% as inflation has also climbed.