Homebuilding Labor Shortages And Costs Continue To Rise
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In the September 2026 NAHB/Wells Fargo Housing Market Index survey, builders reported labor shortages across most of 16 construction trades. The shortage rate averaged 47% across nine consistently tracked trades, up from 42% in April 2025, while the median increase in labor costs over the previous year was 4.2%.

Homebuilding labor shortages increased across most construction trades in a September 2026 survey, with builders also reporting a 4.2% median rise in labor costs over the prior 12 months. The NAHB/Wells Fargo Housing Market Index survey found that 47% of builders reported shortages across nine trades tracked consistently since 1996, up from 42% in April 2025.

The survey asked builders about shortages in 16 specific trades, counting responses that described a shortage as either serious or some. Reported shortages ranged from 33% for excavators and building maintenance managers to 58% for workers who perform finished carpentry. Shortage reports rose at least slightly in 14 of the 16 trades compared with the previous survey in April 2025.

Framing crews recorded the largest increase, rising 9 percentage points to 57%. Shortages among landscaping workers rose 7 points to 39%, while reports of roofer shortages rose 6 points to 36%. The rates for plumbers and HVAC workers were unchanged at 45% and 43%, respectively.

Across the nine trades NAHB has tracked consistently since 1996, the shortage rate was 47% in September 2026, compared with 42% in April 2025. Builders also reported that the median labor cost for the same home had risen 4.2% over the previous 12 months, according to the survey results reported by Hardware Retailing.

At a glance
reportWhen: Survey results published October 15, 20…
The developmentA September 2026 survey of homebuilders found labor shortages had increased across most trades since April 2025, alongside higher labor costs.

Higher Labor Costs Meet More Shortages

The figures point to renewed labor pressure for homebuilders after reported shortages fell between 2022 and 2025. A limited supply of workers in trades such as framing and finished carpentry can make it harder for builders to staff projects on schedule; higher labor costs can add to the cost of construction. The survey does not quantify the effect on individual projects, home prices or construction timelines, but it records simultaneous increases in reported shortages and labor expenses.

The comparison with housing construction levels highlights the scale of the reported shortages. The 47% rate across nine trades is higher than at any point during the 2004–2006 housing boom, when annual housing starts were consistently above 1.8 million. By comparison, August 2026 housing starts were reported at a seasonally adjusted annual rate below 1.3 million. That contrast describes conditions at two different points in time; it does not establish why shortages have risen or how builders will respond.

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Shortages Reversed a Recent Decline

Residential construction labor shortages rose during the COVID-19 pandemic, then declined consistently from 2022 through 2025, according to the survey history described in the report. The latest results show a reversal: the overall measure for the nine consistently tracked trades increased five percentage points from April 2025.

The survey’s comparisons are based on builders’ reports of labor availability, not a direct count of unfilled jobs or workers. Its 16-trade results cover both workers employed directly by builders and specific construction occupations. The report gives the share reporting a shortage, but does not provide a breakdown of the number of builders surveyed or the size of their projects.

“The shortage percentages were generally up from the last time NAHB conducted the survey, in April of 2025.”

— Annie Dameworth, Hardware Retailing

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Survey Does Not Measure Project Effects

The results show what builders reported, but do not establish the causes of the increase or how widespread shortages are across every region and project type. The report does not specify how many builders responded, provide regional or company-size breakdowns, or quantify effects on build times, home prices or housing supply. It also does not indicate whether labor shortages or costs will continue rising in subsequent surveys.

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Future Surveys Will Test the Trend

The next useful comparison will be a later NAHB/Wells Fargo survey using the same trade measures. It can show whether the September increase persists or eases. Until then, the reported results describe builders’ conditions through September 2026; no specific policy response, industry plan or follow-up milestone is identified in the source report.

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Key Questions

How many builders reported labor shortages?

The survey report provides percentages for each trade, rather than a total number of builders. Across nine consistently tracked trades, 47% reported a shortage in September 2026.

Which trade had the highest reported shortage?

Finished carpentry workers had the highest reported shortage rate among the 16 trades, at 58%. Framing crews were close behind at 57%.

How much did reported labor costs rise?

The median increase in labor costs for the same home over the previous 12 months was 4.2%, according to the September survey.

Did shortages increase in every trade?

No. Shortage rates rose at least slightly in 14 of the 16 trades compared with April 2025. Plumber shortages remained at 45%, and HVAC worker shortages remained at 43%.

Does the survey show that labor shortages are raising home prices?

No. It reports labor shortages and changes in labor costs, but does not measure the effect on home prices or quantify how much higher labor expenses add to a home’s price.

Source: rss

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