Homebuilding labor shortages and costs rise in September 2026

Labor shortages in the homebuilding industry are increasing, according to the September 2026 NAHB/Wells Fargo Housing Market Index (HMI) survey. The shortage percentage across nine consistently tracked trades rose to 47%, up from 42% in April 2025. This level of shortage is higher than during the 2004-2006 housing boom.

Specific trades reported varying levels of scarcity. Finished carpentry saw the highest shortage at 58%, while excavators and building maintenance managers reported the lowest at 33%. Significant increases in shortages were noted for framing crews (up 9 percentage points to 57%), landscaping workers (up 7 percentage points to 39%), and roofers (up 6 percentage points to 36%).

In addition to labor scarcity, homebuilders reported rising costs, with the median increase in labor costs for the same home over the previous 12 months reaching 4.2%. Factors contributing to these trends include competition for labor from other sectors, such as data center construction, and heightened immigration enforcement.