Highest Paid Occupations in Construction in 2024

2025-05-13T08:15:41-05:00

Half of payroll workers in construction earn more than $60,320 and the top 25% make at least $81,510, according to the latest May 2024 Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) and analysis by the National Association of Home Builders (NAHB). In comparison, the U.S. median annual pay is $49,500, while the top quartile (the highest paid 25%) makes at least $78,810.1 The OEWS publishes wages for almost 400 occupations in construction. Out of these, only 46 are construction trades. The other construction industry workers are in finance, sales, administration and other off-site activities. In 2024, the highest paid occupation in construction is lawyers with wages of $180,520 per year, and the top 25 percent making over $238,720. Traditionally, Chief Executive Officer (CEO) occupy the top paid position in the industry, but in 2024, they are second on the list, with half of CEOs making over $174,030, while the wages of the top quartile remain undisclosed. Out of the top twenty highest paid occupations in construction, fourteen are various managers. The highest paid managers in construction are architectural and engineering managers, with half of them making over $153,510 and the top 25 percent on the pay scale earning over $181,150 annually. The architectural and engineering managers also stand out for having a smaller salary range spread, measured as a percentage difference between the bottom and top 25 percent pay levels. Only computer and information systems (CIS) managers have a narrower pay range among managers in construction. The annual pay of the highest paid 25 percent CIS managers in construction is at least $168,850, which is 40% higher than the top earnings of the lowest paid quartile ($119,990). In contrast, higher-level positions, such as lawyers and CEOs, have a noticeably wider pay scale spread. The top 25 percent highest paid lawyers make more than double of the bottom quartile pay, potentially reflecting a greater range of responsibilities and opportunities for career advancement for lawyers in construction. Among construction trades, elevator installers and repairers top the median wages list with half of them earning over $108,130 a year, and the top 25% making at least $133,370. This is also the only construction trade that made the industry overall top 20 highest paid occupations list.  First-line supervisors of construction trades are next on the trade list; their median wages are $78,900, with the top 25% highest paid supervisors earning more than $100,150.   In general, construction trades that require more years of formal education tend to offer higher annual wages. Median wages of construction and building inspectors are $66,340 and the top quartile is $89,550. This is also the trade with a relatively wide pay scale spread, with the top 25 percent making at least 74% more than the bottom quartile, potentially reflecting a wider variance in educational attainment, professional responsibilities and expertise of building inspectors. Carpenters are one of the most prevalent construction crafts in the industry. The trade requires less formal education. Nevertheless, the median wages of carpenters working in construction exceed the national median. Half of these craftsmen earn over $59,890 and the highest paid 25 percent bring in at least $76,290. Plumbers and electricians, trades that typically require specialized training and licensing, earn higher annual wages. Half of plumbers in construction earn over $62,820, with the top quartile making over $81,740. Electricians’ wages are similarly high. The construction trade with the greatest pay range spread is pile driver operators. The top 25 percent highest paid operators earn at least $105,100, over 100% more than the bottom quartile. This wide pay scale presumably reflects a greater variety of opportunities and geographic locations (some pile driver operators work on offshore rigs), as well as varying degree of technical expertise and training (some equipment comes with computerized controls and requires additional knowledge of electronics). In contrast, solar photovoltaic installers, a relatively new construction trade, have a much narrower pay scale. The difference between the annual pay of the top 25 percent ($65,850) and the bottom quartile ($48,350) is 36%, likely reflecting less variation in expertise, training, and geographic prevalence. Typically, construction trades that require less skill not only offer lower wages but also show less variation in pay. 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 in pay. For example, the highest paid quartile of carpenters’ helpers makes at least $46,720 a year, while the bottom quartile earns at most $35,870, only a 30% difference. The OEWS wages are straight-time, gross pay. They do not include premium pay (stock and year-end bonuses, over-time pay, weekend premium pay, etc.) Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Highest Paid Occupations in Construction in 20242025-05-13T08:15:41-05:00

Fed Remains on Pause with Rising Uncertainty

2025-05-07T14:23:12-05:00

The Federal Reserve remained on pause with respect to rate cuts at the conclusion of its May meeting, maintaining the federal funds rate in the 4.25% to 4.5% range. Characterizing current market conditions, the central bank noted that the “unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid.” However, the Fed noted that “inflation remains somewhat elevated.” Today’s statement acknowledged the weak first quarter GDP report via a reference to “swings in net exports have affected data” but otherwise the economy continues to expand at a “solid pace.” The Fed also reiterated its commitment to maintain maximum employment and bring inflation back to its 2% target rate. With respect to monetary policy, the Fed noted that uncertainty for the U.S. economy has increased. Mindful of its dual mandate (price stability and maximum employment), the Fed noted that the “risks of higher unemployment and higher inflation have risen.” This statement reflects the complex situation the Fed currently faces, with risks to both sides of its policy mandate increasing. While todays statement does not explicitly reference tariff policy, the debate over tariffs is an obvious candidate for the source of these rising risks that would harm the labor market and raise prices. Indeed, Chair Powell referenced industry reports of tariff risks in his press conference. Many economists, who as a profession dislike tariffs, would argue that the Fed would likely move further on normalizing monetary policy and reducing rates, if not for the risks of future tariff policy. In the meantime, as Chair Powell noted, otherwise solid economic conditions leave the Fed with moderately restrictive policy and “in a good place to wait and see” with respect to future policy. Today’s statement noted that the Federal Open Market Committee “will carefully assess incoming data, the evolving outlook, and the balance of risks.” In particular, the Fed will review “readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.” While the list of data sources the Fed is watching seems like everything but the kitchen sink, the Fed should be sure to watch sinks, windows, lighting fixtures, and other building material pricing and availability to gauge future economic and inflation conditions. Shelter inflation remains a leading source of ongoing elevated inflation. And shelter inflation can only be reduced by building more attainable housing. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Fed Remains on Pause with Rising Uncertainty2025-05-07T14:23:12-05:00

House Sharing is Not Just for Young Adults

2025-04-30T08:23:25-05:00

A record-high 6.8 million households shared their housing with unrelated housemates, roommates or boarders in 2023. While college-age and young adults make up the largest subset of house sharers (close to 41%), this type of living arrangement is gaining popularity among older householders fastest, with the 55+ segment accounting for 30% of all house-sharing households in 2023. The number of households sharing housing with nonrelatives had been rising steadily since the 2008 housing crash until the COVID-19 pandemic interrupted the upward trend. During that period, the count of households with at least one unrelated member increased from 5.3 million in 2008 to over 6.7 million in 2019. At the same time, the percentage of house-sharing households grew from 4.7% to 5.4%. The pandemic dramatically redefined living arrangement preferences. Reflecting the shift towards more spacious, lower-density independent living, the number and percentage of house-sharers collapsed in 2020 (although the data collection issues during the lockdown stages of the COVID-19 pandemic make the 2020 estimates less reliable).  While the percentage of households sharing housing has climbed since the pandemic lows, it remains below the 2019 peak. However, the count of house-sharing households in the U.S. is now at a new record-high point. This is largely reflective of a faster household formation rate since the end of the pandemic, as well as the growing popularity of home sharing arrangements. Young Adults (25-34) Young adults in the 25-34 age group make up the largest (close to 1.6 million, or 23%) cohort of households that share housing with unrelated housemates. Over the last two decades, amid the rising housing burdens and cost of living, house sharing became a way for young adults to afford to leave parental homes. From 2005 to 2017, as the headship rates for this age group declined precipitously and millions of young adults dropped out of the housing market, house sharing became more common among those who managed to stay out of parental homes. In 2017, when 25 to 34-year-old adults registered record low headship rates, one in eleven householders in this age group shared housing with unrelated housemates. By 2023, when the headship rates rebounded, the share of 25 to 34-year-old house-sharing householders dropped to 7.9%, on par with the 2005 reading. While it is tempting to assume that the high prevalence of house sharing among young adults reflects a rise in unmarried partnerships, these are not considered house-sharers in this analysis.  Unmarried partners tend to function as a unit similar to a married couple, dividing their economic, social and financial responsibilities, and not just those related to house-sharing. To differentiate between these different demographic trends, unmarried partnerships are counted as independent households for the purposes of this analysis.1 College-Age Adults (18-24) College-age adults make up the second largest group of house-sharing householders (1.2 million, or 17%). While the total counts are substantial, they represent a decline since 2005 when 1.3 million 18 to 24-year-old householders shared housing with unrelated roommates, accounting for 22% of house-sharing households.  The lower counts of house sharers in this age group reflect, among other factors, the rising share of college-age adults living with parents, declining rates of college attendance in recent years, as well as slower youth population growth. Nevertheless, the youngest householders remain the age group that is most likely to share housing. As of 2023, over one in five leaseholders/homeowners in the 18-24 age group shared housing with unrelated roommates or housemates. Older Adults 55+ Older adults ages 55 and over registered the most substantial gains in house-sharing arrangements since the housing boom of the mid-2000s[1]. The number of households lead by 55 to 64-year-old adults that shared housing almost doubled since 2005 to 1 million. Their segment increased from 9% of house-sharing households in 2005 to 14% in 2023. At the same time, the number of house-sharers among 65+ householders increased 2.7 times. These oldest householders now account for over a million, or 15% of all house-sharing households, more than doubling their share of 6.8% in 2005. Partially, the surge in the number of older households sharing housing with nonrelatives simply reflects the aging U.S. population with numerous baby boomers filling the ranks of 55+ households. Partially, it captures the changing preferences, as the older householders are now more likely to live with unrelated members. In 2005, 3% of 55 to 64-year-old householders shared housing with nonrelatives. This share increased to 3.6% in 2013 and continued its climb to 4.1% in 2023. The increase in the percentage of 65+ householders sharing housing was similarly persistent, rising from 1.7% in 2005, to 2.3% in 2013, and climbing further to reach 2.8% in 2023. Unlike the rates of house-sharing among younger adults, the rates for the 55+ age group appear less cyclical. While still largely unconventional among 55 and older householders, house sharing is on the rise, potentially offering a cost-effective option for older adults to stay in place as they age.2 The ACS microdata allows differentiating between unmarried partners and those living with roommates/housemates/nonrelatives, even though they are all included in Census’s separate variable that counts unrelated household members.Conventionally, the population in group quarters, such as dormitories, nursing homes, etc., are not included in household counts. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

House Sharing is Not Just for Young Adults2025-04-30T08:23:25-05:00

Despite Exemptions and Delays, Tariffs are Already Affecting Builders

2025-04-15T10:17:36-05:00

Home builders have already started to feel the effects of U.S. tariff policy, according to recent NAHB member surveys. This is true even though the Administration did not announce its list of reciprocal tariffs until April 2nd, lumber along with USMCA-compliant imports from Canada and Mexico were exempt, and a week later the Administration enacted a 90-day hiatus, with tariffs on countries other China limited to 10% over this time. The Administration subsequently granted further temporary exemptions from the reciprocal tariffs for a broad range of electronic products imported from China.   After all this, significant uncertainty about the final outcome still remains. The U.S. may revisit trade policy for Canada and Mexico, China-U.S. negotiations are unsettled, and the effects of the 10% tariff on building products from other countries are difficult to predict. Moreover, exactly what will happen at the end of the 90-day hiatus remains unclear. In the meantime, economic uncertainty can adversely affect consumer confidence and make prospective home buyers hesitate. This is one of the reasons the NAHB/Wells Fargo Housing Market Index (HMI) declined in March. The latest NAHB estimate  (based on cost data from RSMeans and PPI inflation rates) is that the average new single-family home requires $174,155 worth of building materials. Previous NAHB research has shown that 7.3% of materials in residential construction, or $12,713 of materials costs for the average single-family home, is imported. Based on this, it may seem that tariffs would have a limited effect on home builders. However, as noted above, the uncertainty caused by the mere announcement of tariffs can have an adverse effect on the behavior consumers and even businesses. In recent surveys, NAHB builders and remodelers reported that building material suppliers had already increased their prices—by an average of 5.5% and 6.9%, respectively—due to announced, enacted or anticipated tariffs. The data on builders came from the HMI survey and were collected during the first two weeks of March. The data on remodelers came from the survey for the NAHB/Westlake Royal Remodeling Market Index and were collected during the last week of March and first three days of April. NAHB will  continue to monitor material prices given the uncertainty and fluidity of the tariff situation.  Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Despite Exemptions and Delays, Tariffs are Already Affecting Builders2025-04-15T10:17:36-05:00

Almost Half of the Owner-Occupied Homes Built Before 1980

2025-04-08T08:16:35-05:00

Around 48% of the U.S. housing stocks dates back to the 1980s and earlier. The median age of owner-occupied homes has climbed to 41 years in 2023, up from 31 years in 2005 according to the latest data from the American Community Survey[1]. The U.S. owner-occupied housing stock has aged rapidly particularly, particularly since the Great Recession, as the residential construction continues to fall behind in delivering new homes. Currently, new home construction faces headwinds such as rising material costs, persistent labor shortage and elevated interest rates. These challenges have contributed to an insufficient supply of new construction, making the nation’s owner-occupied housing stock significantly older over time. As a result, the aging housing stock signals a future growing remodeling market. Older structures require updates to add new amenities or need repairs or replacements of old components. Moreover, the lock-in effect from historically low mortgage rates during the pandemic period has led many homeowners to stay put and renovate their existing homes to accommodate the growing needs of their families. Over the long run, the aging of the housing stock implies that remodeling may grow faster than new construction. From 2020 to 2023, new construction added nearly 2.6 million owner-occupied homes, accounting for only 3% of total owner-occupied housing stock as of 2023. Relatively newer homes built between 2010 and 2019 took up around 9% of the stock, while those constructed between 2000 and 2009 made up 15%. In contrast, around 48% of the owner-occupied homes were built before 1980, including around 35% built before 1970. Due to modest supply of housing construction, the share of relatively newer owner-occupied homes (those built within past 13 years) has declined greatly, from 18% in 2013 to only 12% in 2023. Meanwhile, the share of older homes that are at least 44 years old has increased significantly, rising from 39% in 2013 to 48% in 2023. This shift further reflects the ongoing aging of the U.S. housing stock, highlighting the growing importance of the remodeling sector to address the growing needs of homeowners nationwide. [1] : Census Bureau did not release the standard 2020 1-year American Community Survey (ACS) due to the data collection disruptions experienced during the COVID-19 pandemic. The data quality issues for some topics remain in the experimental estimates of the 2020 data. To be cautious, the 2020 experimental data is not included in the analysis. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Almost Half of the Owner-Occupied Homes Built Before 19802025-04-08T08:16:35-05:00

Affordability Pyramid Shows 94 Million Households Cannot Buy a $400,000 Home 

2025-03-31T09:20:54-05:00

NAHB recently released its 2025 Priced-Out Analysis, highlighting the housing affordability challenge. While previous posts discussed the impacts of rising home prices and interest rates on affordability, this post focuses on the related U.S. housing affordability pyramid. The pyramid reveals that 70% of households (94 million) cannot afford a $400,000 home, while the estimated median price of a new home is around $460,000 in 2025. The housing affordability pyramid illustrates the number of households able to purchase a home at various price steps. Each step represents the number of households that can only afford homes within that specific price range. The largest share of households falls within the first step, where homes are priced under $200,000. As home prices increase, fewer and fewer households can afford the next price level, with the highest-priced homes—those over $2 million—having the smallest number of potential buyers. Housing affordability remains a critical challenge for households with income at the lower end of the spectrum. The pyramid is based on income thresholds and underwriting standards. Under these assumptions, the minimum income required to purchase a $200,000 home at the mortgage rate of 6.5% is $61,487. In 2025, about 52.87 million households in the U.S. are estimated to have incomes no more than that threshold and, therefore, can only afford to buy homes priced up to $200,000. These 52.87 million households form the bottom step of the pyramid. Of the remaining households who can afford a home priced at $200,000, 23.53 million can only afford to pay a top price of somewhere between $200,000 and $300,000. These households make up the second step on the pyramid. Each subsequent step narrows further, reflecting the shrinking number of households that can afford increasingly expensive homes. It is worthwhile to compare the number of households that can afford homes at various price levels and the number of owner-occupied homes available in those ranges (excludes homes built-for-rent), as shown in Figure 2. For example, while around 53 million households can afford a home priced at $200,000 or less, there are only 22 million owner-occupied homes valued in this price range. This trend continues in the $200,000 to $300,000 price range, where the number of households that can afford homes is much higher than the number of housing units in that range. These imbalances show a shortage of affordable housing. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Affordability Pyramid Shows 94 Million Households Cannot Buy a $400,000 Home 2025-03-31T09:20:54-05:00

Lower Mortgage Rates, Better Affordability

2025-03-24T11:19:31-05:00

As housing affordability remains a critical challenge across the country, mortgage rates continue to play a central role in shaping homebuying power. Mortgage rates stayed elevated throughout 2023 and early 2024. Recent data, however, shows a modest decline in mortgage rates. Even slight declines can have a significant impact on housing affordability, pricing more households back into the market. New NAHB Priced-Out Estimates show how home price increases affect housing affordability in 2025. This post presents details regarding how interest rates affect the number of households that can afford a median priced new home. At the beginning of 2025, with the average 30-year fixed mortgage rate at 7%, around 31.5 million households could afford a median-priced home at $459,826. This requires a household income of $147,433 by the front-end underwriting standards[1]. In contrast, if the average mortgage rates had remained at the recent peak of 7.62% in October 2023, only 28.7 million households would have qualified. This 62-basis point decline has effectively priced 2.8 million additional households into the market, expanding homeownership opportunities. The table below shows how affordability changes with each 25 basis-point increase in interest rates, from 3.75% to 8.25% for a median-priced home at $459,826. The minimum required income with a 3.75% mortgage rate is $110,270. In contrast, a mortgage rate of 8.25%, increases the required income to $163,068, pushing millions of households out of the market. As rates climb higher, the priced-out effect diminishes. When interest rates increase from 6.5% to 6.75%, around 1.13 million households are priced out of the market, unable to meet the higher income threshold required to afford the increased monthly payments. However, an increase from 7.75% to 8% would squeeze about 850,000 households out of the market. This exemplifies that when interest rates are relatively low, a 25 basis-point increase has a much larger impact. It is because it affects a broader portion of households in the middle of the income distribution. For example, if the mortgage interest rate decreases from 5.25% to 5%, around 1.5 million more households will qualify the mortgage for the new homes at the median price of $459,826. This indicates lower interest rates can unlock homeownership opportunities for a substantial number of households. [1] . The sum of monthly payment, including the principal amount, loan interest, property tax, homeowners’ property and private mortgage insurance premiums (PITI), is no more than 28 percent of monthly gross household income. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Lower Mortgage Rates, Better Affordability2025-03-24T11:19:31-05:00

Fed Remains in Wait and See Mode

2025-03-19T16:19:26-05:00

In a widely anticipated move, the Federal Reserve remained on pause with respect to rate cuts at the conclusion of its March meeting, maintaining the federal funds rate in the 4.25% to 4.5% range. While the central bank acknowledged that the economy remains solid, it emphasized a data- and policy-dependent approach to future monetary policy decisions due to increased uncertainty. According to Chair Powell, the Fed “is not in any hurry” to enact policy change and is well positioned to wait to make future interest rate moves. However, in a small dovish step, the Fed slowed the pace of its balance sheet reduction, but only for Treasuries. The Treasury security runoff will be reduced from $25 billion a month to $5 billion. The mortgage-backed security run-off process will remain at a $35 billion a monthly rate. Chair Powell stated that the change was not a signal of broader economic issues and was just a technical adjustment to the long-run goal of balance sheet reduction. Although the Fed did not directly address ongoing trade policy debates (and particularly trade and tariff details expected on April 2) and their economic implications, it reaffirmed that future monetary policy assessments would consider “a wide range of information, including readings on labor market conditions, inflation pressures, and inflation expectations, and financial and international developments.” With respect to prices, the Fed’s March statement noted that “inflation remains somewhat elevated.” For example, the CPI is at a 2.8% year-over-year growth rate. Shelter inflation, while improving as noted by Chair Powell, continues to run at an elevated 4.2% annual growth rate, significantly above the CPI. These costs are driven by challenges such as financing costs, regulatory burdens, rising insurance costs, and the structural housing deficit. The March Fed statement highlighted the central bank’s dual mandate, noting its ongoing assessment of the “balance of risks.”  Crucially, the Fed reiterated its “strong commitment to support maximum employment and returning inflation to its 2 percent objective.” The Fed also published its updated Summary of Economic Projections (SEP). The central bank reduced its GDP outlook for 2025 from 2.1% growth to just 1.7% (measured as percentage change from the fourth quarter of the prior year to the fourth quarter of the year indicated). Policy uncertainly likely played a role for this adjustment. The Fed made only marginal changes to its forecast for unemployment, pointing to a 4.3% jobless rate for the fourth quarter of 2025. The Fed did lift its inflation outlook, increasing its forecast for Core PCE inflation from 2.5% for the year to 2.8%. Forecasters, including NAHB, have lifted inflation estimates for 2025 due to tariffs, although tariffs may only produce a one-off shift in the price level rather than a permanent increase for the inflation rate. Nonetheless, Chair Powell noted that tariffs have already affected inflation forecasts for 2025. The Fed’s SEP also indicated that the Fed may cut twice this year, placing the federal funds rate below 4% during the fourth quarter of 2025. However, those FOMC members who saw less than two rate cuts this year were more likely to forecast no rate cuts at all for 2025. Looking over the long run, the SEP projections suggest that the terminal rate for the federal funds rate will be 3%, implying six total twenty-five basis point cuts in the future as rates normalize. This is lower than our forecast, which suggests a higher long-run inflation risk path and a terminal rate near 3.5%. A lower federal funds rate means lower AD&C loan rates for builders, which can help with housing supply and hold back shelter inflation. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Fed Remains in Wait and See Mode2025-03-19T16:19:26-05:00

Home Building Employment across States and Congressional Districts in 2023

2025-03-18T08:15:59-05:00

As the number of housing units under construction peaked in 2023, the industry set another record employing close to 11.4 million people, including self-employed workers. NAHB estimates that out of this total, 4.7 million people worked in residential construction, accounting for 2.9% of the U.S. employed civilian labor force. Home building in the Mountain Division, as well as in Vermont and Florida, stand out as generating a significantly higher share of local jobs, with residential construction generating more than 5% of all jobs in Idaho and Montana. NAHB’s analysis also identifies congressional districts where home building accounts for particularly high employment levels and share of local jobs. Not surprisingly, the most populous state—California—also has the most residential construction workers. Over 640,000 California residents worked in home building in 2023, accounting for 3.4% of the state employed labor force. Fast-growing Florida comes in second with 468,000 residential construction workers. The state stands out for registering one of the fastest growing populations since the start of the pandemic, which undoubtedly boosted housing and construction workforce demand. Florida’s large stock of vacation and seasonal housing further boosts demand for residential construction workers. As a result, in Florida, residential construction workers account for a relatively high 4.4% of the employed labor. Even though this share is well above the national average (2.9%), it is significantly lower than in 2006, when Florida registered the highest share among all 50 states and the District of Columbia, at 6.5%. Similar to Florida, fast-growing states with a high prevalence of seasonal, vacation homes top the list of states with the highest share of residential construction workers in 2023. Three states in the Mountain Division - Idaho, Montana, and Utah - take the top spots on the list with 5.5%, 5.1% and 4.9% of the employed labor force working in home building. Vermont is next on the list with a share of 4.6%.   As of 2023, the average congressional district has about 10,800 residents working in residential construction, but that number is often significantly higher. In Idaho’s 1st Congressional District, over 30,000 residents are in home building and Utah’s 2nd Congressional District has over 25,000 residents working in home building.  Eight other congressional districts have over 20,000 residents working in residential construction – Florida’s 26th, Utah’s 4th, Idaho’s 2nd, Florida’s 17th, Arizona’s 3rd, Utah’s 1st, Florida’s 28th, and California’s 29th.  By design, Congressional districts are drawn to represent roughly the same number of people. So generally, large numbers of residential construction (RC) workers translate into high shares of RC workers in their district employed labor forces.  Idaho’s 1st tops this list as well, registering the highest share of residential construction workers in the employed labor force, 6.4%. Florida’s 17th is a close second with 6.3% of the district labor force employed in home building. Next on the list are two Mountain division districts – Montana’s 1st and Utah’s 2nd – with shares of 5.8%, followed by two Florida’s districts – 19th (5.7%) and 26th (5.6%). California’s 29th (5.4%) and 39th (5.3%) also register shares far exceeding the national average of 2.9%.    At the other end of the spectrum there are several districts that contain parts of large urban areas: the District of Columbia, the 12th of New York, located in New York City, Pennsylvania’s 3rd that includes areas of the city of Philadelphia, Georgia’s 5th that includes most of Atlanta, and among others, Illinois’s 7th and 9th, covering parts of Chicago. Most residents in these urban districts tend to work in professional, scientific, and technical services. The District of Columbia stands out for having the lowest number of RC workers, with just 1,400 residing in the district. At the same time, it has a disproportionally large share of public administration workers. The 12th District of New York and the 7th District of Illinois are home to a very large group of finance and insurance workers. Meanwhile, in Pennsylvania’s 2nd, more than a third of residents work in health care and educational services.  The NAHB residential construction employment estimates include self-employed workers. Counting self-employed is particularly important in the home building industry since they traditionally make up a larger share of the labor force than in the U.S. total workforce.   The new NAHB home building employment estimates only include workers directly employed by the industry and do not count jobs created in related industries– such as design and architecture, furniture making, building materials, landscaping, etc.  As a result, the estimates underestimate the overall impact of home building on local employment.  Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Home Building Employment across States and Congressional Districts in 20232025-03-18T08:15:59-05:00

How Rising Costs Affect Home Affordability

2025-03-10T09:19:44-05:00

Housing affordability remains a critical issue, with 74.9% of U.S. households unable to afford a median-priced new home in 2025, according to NAHB’s latest analysis. With a median price of $459,826 and a 30-year mortgage rate of 6.5%, this translates to around 100.6 million households priced out of the market, even before accounting for further increases in home prices or interest rates. A $1,000 increase in the median price of new homes would price an additional 115,593 households out of the market. The 2024 priced-out estimates for all states and the District of Columbia and over 300 metropolitan statistical areas are shown in the interactive map below. It highlights the growing housing affordability challenges across the United States. In 23 states and the District of Columbia, over 80% of households are priced out of the median-priced new home market. This indicates a significant disconnect between rising home prices and household incomes. Maine stands out as the state with the highest share of households (91.2%) unable to afford the state’s median new home price of $682,223. High-cost states such as Connecticut and Rhode Island follow closely, with 88.3% and 87.8% of households, respectively, struggling to afford new homes. Even in states with relatively lower median new home prices, affordability remains a major concern. For example, in Mississippi, where the median home price is $275,333, 70.2% of households still find these new homes out of reach. Meanwhile, Delaware, the state with better affordability in the analysis, has a median new home price of $373,666. However, around 58.2% of households in Delaware still struggle to afford a new home. Even modest price increases, such as an additional $1,000, could push thousands more households from affording these median priced new homes. For instance, in Texas, such an increase could price out over 11,000 households. It also shows the 2025 priced-out estimates for over 300 metropolitan statistical areas. The analysis estimates how many households in each metro area earn enough income to qualify for mortgages on median-priced new homes. In high-cost areas like the San Jose-Sunnyvale-Santa Clara, CA metro area, where new homes largely target high-income Silicon Valley residents, only 10% of all households meet the minimum income threshold of $437,963 required to qualify for a loan on a median priced new home. In contrast, in more affordable metro areas like Sierra Vista-Douglas, AZ, where the median new home price is $150,893, nearly two-thirds of households can afford a median priced new home. While higher home prices generally result in higher monthly mortgage payments and higher income thresholds, the relationship between home prices and affordability is not always linear. Factors like property taxes and insurance payments can also significantly impact monthly housing costs, adding complexity to affordability calculations. The affordability of new homes and together with the population size of a metro area, significantly influence the priced-out impact of a $1,000 increase in new home prices. In metro areas where new homes are already unaffordable to most households, the effect of such an increase tends to be small. For instance, in the San Jose-Sunnyvale-Santa Clara, CA metro area, an additional $1,000 increase to the home price affects only 259 households, as only 10% of all households could afford such expensive new homes in the first place. Here, the additional price increase only affects a narrow share of high- income households at the upper end of the income distribution, where affordability is already stretched.In contrast, metro areas, where new homes are more broadly affordable, experience a larger priced-out effect. A $1,000 increase in the median new home price affects a larger share of households in the “thicker part” of the income distribution. For example, in the Dallas-Fort Worth-Arlington, TX metro area, a $1,000 increase in new home price would disqualify 2,882 households from affording a median-priced new home. This is the largest priced-out effect among all metro areas, driven by the combination of relatively moderate home prices and a substantial population base. More details, including priced out estimates for every state and over 300 metropolitan areas, and a description of the underlying methodology, are available in the full study. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

How Rising Costs Affect Home Affordability2025-03-10T09:19:44-05:00
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