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

Construction Self-Employment Stable at 23%

2025-02-18T08:17:30-06:00

The share of self-employed in construction remains just under 23%, a new post-pandemic norm. While this is significantly higher than an economy-wide average of 10% of the employed labor force, for construction, these rates are historically low. Across the nation, construction self-employment rates range from 38% in Maine to 13% in Nevada. As of 2023, close to 2.6 million of workers employed in construction are self-employed, according to the latest American Community Survey (ACS). While the industry’s payroll employment surpassed the historic highs of the home building boom of the mid-2000s, the number of self-employed remains below the peak of 2006 when over a quarter of the construction labor force was self-employed. Declining self-employment rates in construction coincide with the declining share of tradesmen in construction and potentially reflect structural changes in the construction labor force, such as a shift towards larger construction firms that are better equipped to invest into new technologies and absorb higher overhead costs. Partially, the downward trend in construction self-employment rates since the Housing Bust reflects the counter-cyclical nature of self-employment. Under normal circumstances, self-employment rates rise during an economic downturn and fall during an expansion. This presumably reflects a common practice among builders to downsize payrolls when construction activity is declining. In contrast, builders and trade contractors offer better terms for employment and attract a larger pool of laborers to be employees rather than self-employed when workflow is steady and rising.   Potentially reflecting the counter-cyclical nature of construction self-employment, the current self-employment rates are 3.4 percentage points lower compared to the peak rate of the Great Recession. For similar reasons, persistent labor shortages that plagued the industry during the last decade likely have contributed to the decline in self-employment rates. Ostensibly, to minimize construction delays, builders and trade contractors would be willing to offer better payroll terms to secure employees when finding experienced craftsmen is a challenge. Since the 2020 ACS data are not reliable due to the data collection issues experienced during the early lockdown stages of the pandemic, we can only compare the pre-pandemic 2019 and post-pandemic 2021-2022 data (hence the omitted 2020 data in the charts above). As a result, it is not clear what accounted for the post-pandemic bump in self-employment. One answer is that   self-employed workers in construction managed to remain employed during the short COVID-19 recession or recovered their jobs faster afterwards, compared to private payroll workers. Another possibility is that the booming residential construction sector attracted self-employed workers from other more vulnerable or slow recovering industries, including commercial construction. Examining cross-state variation provides additional insights into construction self-employment rates. The New England states and Montana register some of the highest self-employment shares. In Maine, 38% of construction workers are self-employed. The share is similarly high in Vermont where more than a third of workers are self-employed, 36%. In Connecticut and Rhode Island, 28% of workers are self-employed. In Montana, the share is 30%. The New England states are where it takes longer to build a house.  Because of the short construction season and longer times to complete a project, specialty trade contractors in these states have fewer workers on their payrolls. The 2022 Economic Census data show that specialty trade contractors in Vermont and Maine have some of the smallest payrolls in the nation with five workers on average. Only contractors in Montana have smaller payrolls, averaging less than 5 workers. At the same time, the national average is over nine workers. As a result, independent entrepreneurs in New England and Montana tend to complete a greater share of work, which helps explain the high self-employment shares in these states. The Mountain division has states with the highest and lowest self-employment rates simultaneously. Montana and Colorado, where more than a quarter of workers are self-employed, round up the list of states with the highest self-employment rates. At the same time, Nevada registers one of the lowest (13%) self-employment rates in construction and takes the place at the opposite end of the list. Only Washington, DC has a lower share of self-employed, 9%. The substantial differences likely reflect a predominance of home building in Montana and Colorado and a higher prevalence of commercial construction, that has larger payroll employment and, presumably, relies less heavily on self-employed. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Construction Self-Employment Stable at 23%2025-02-18T08:17:30-06:00

Moving Out of Parental Homes is On Hold

2025-01-20T08:18:45-06:00

The worst on record rental affordability conditions, depleted “excess” savings of the pandemic era, and high mortgage rates halted the post-pandemic trend of young adults moving out of parental homes. The share of adults ages 25-34 living with parents or parents-in-law hovered just above 19% in 2023, stagnant from 2022, according to NAHB’s analysis of the 2023 American Community Survey (ACS) Public Use Microdata Sample (PUMS). While this percentage is the second lowest since 2011, the share remains elevated by historical standards. Regionally, Southern and Northeastern states register some of the highest shares of young adults remaining in parental homes. Traditionally, young adults ages 25 to 34 make up around half of all first-time homebuyers. Consequently, the number and share of young adults in this age group that choose to stay with their parents, or parents-in-law, has profound implications for household formation, housing demand, and the housing market. The current share of 19.2% translates into 8.5 million young adults living in homes of their parents or parents-in-law. In contrast, less than 12% of young adults ages 25 to 34, or 4.6 million, lived with parents in 2000. The share peaked in 2017-2018 at 22% when the ACS recorded over 9.7 million adults ages 25 to 34 living with parents. While the national average share hovers around 19.2%, more than a quarter of young adults ages 25-34 remain in parental homes in California (26.5%), New Jersey (26.3%), and Hawaii (25.2%). Delaware (23.2%), Maryland (22.7%), Florida (22.4%) and New York (21.8%) are next on the list. At the opposite end of the spectrum are states with less than one in ten young adults living with parents. The fast-growing North Dakota records the nation’s lowest share of 5%, while the neighboring South Dakota registers 7%. In the District of Columbia, known for its relatively stable job market, less than 7.5% of young adults live with their parents. The cluster of central US states completes the nation’s list with the lowest percentages of young adults remaining in parental homes – Nebraska (8.4%), Iowa (8.5), and Wyoming (9.6%). The elevated shares of young adults living with parents in high-cost coastal areas point to prohibitively expensive housing costs as one of the reasons for keeping young adults in parental homes. The statistical analysis confirms that states with higher shares of cost-burdened owners and renters living in unaffordable homes (i.e., paying 30 percent or more of income on housing) register higher shares of young adults living with parents. In particular, renters’ housing cost burdensexplain half of the cross-state variation in the shares of young adults living in parental homes. Multigeneration living, which is more prevalent among ethnic households, can also contribute to the elevated shares of young adults living with parents. This can be particularly relevant in the Southern states with higher shares of Hispanic households. However, the statistical analysis shows that while the correlation is positive, prevalence of Hispanic households does not carry any additional explanatory power once housing cost burdens are accounted for. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Moving Out of Parental Homes is On Hold2025-01-20T08:18:45-06:00

Single-Family Permits Up in November 2024  

2025-01-15T09:23:24-06:00

Over the first eleven months of 2024, the total number of single-family permits issued year-to-date (YTD) nationwide reached 912,910. On a year-over-year (YoY) basis, this is an increase of 8.2% over the November 2023 level of 843,654. Year-to-date ending in November, single-family permits were up in all four regions. The range of permit increases spanned 11.5% in the Midwest to 6.3% in the South. The West was up by 11.4% and the Northeast was up by 9.4% in single-family permits during this time. For multifamily permits, three out of the four regions posted declines. The Northeast, driven by New York City’s MSA, was the only region to post an increase and was up by 32.6%. Meanwhile, the West posted a decline of 29.7%, the South declined by 19.6%, and the Midwest declined by 3.1%. Between November 2024 YTD and November 2023 YTD, 44 states posted an increase in single-family permits. The range of increases spanned 31.4% in Montana to 2.6% in Missouri. The remining six states and the District of Columbia reported declines in single-family permits. The ten states issuing the highest number of single-family permits combined accounted for 62.9% of the total single-family permits issued. Texas, the state with the highest number of single-family permits, issued 146,843 permits over the first eleven months of 2024, which is an increase of 8.8% compared to the same period last year. The second highest state, Florida, was down by 0.3%, while the third highest, North Carolina, posted an increase of 7.0%. Year-to-date ending in November, the total number of multifamily permits issued nationwide reached 445,357. This is 14.5% below the November 2023 level of 520,919. Between November 2024 YTD and November 2023 YTD, 21 states recorded growth in multifamily permits, while 29 states and the District of Columbia recorded a decline. New York (+113.8%) led the way with a sharp rise in multifamily permits from 14,544 to 31,098, while Idaho had the biggest decline of 54.3% from 5,469 to 2,497. The ten states issuing the highest number of multifamily permits combined accounted for 62.3% of the multifamily permits issued. Over the first eleven months of 2024, Texas, the state with the highest number of multifamily permits issued, experienced a decline of 21.3%. Following closely, the second-highest state in multifamily permits, Florida, saw a decline of 25.0%. California, the third largest multifamily issuing state, decreased by 32.0%. At the local level, below are the top ten metro areas that issued the highest number of single-family permits. For multifamily permits, below are the top ten local areas that issued the highest number of permits. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Single-Family Permits Up in November 2024  2025-01-15T09:23:24-06:00

State-Level Employment Situation: November 2024

2024-12-23T13:15:43-06:00

Nonfarm payroll employment increased in 38 states and the District of Columbia in November compared to the previous month, while it decreased in 12 states. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 227,000 in November, following a meager gain of 32,000 jobs in October. On a month-over-month basis, employment data was most favorable in Florida, which added 61,500 jobs, rebounding from the hurricanes that hit the sunshine state in October. Washington came in second (+30,900), followed by North Carolina (+15,000). A total of 20,300 jobs were lost across 12 states, with Colorado reporting the steepest job losses at 3,900. In percentage terms, employment increased the highest in Washington at 0.9%, while Vermont saw the biggest decline at 0.3% between October and November. Year-over-year ending in November, 2.3 million jobs have been added to the labor market across 49 states and the District of Columbia. This is a 1.4% increase compared to November 2023 level. South Dakota reported no change. The range of job gains spanned from 2,900 jobs in West Virginia to 274,300 jobs in Texas. In percentage terms, the range of job growth spanned 3.1% in Idaho to 0.3% in Iowa. Across the nation, construction sector jobs data 1—which includes both residential and non-residential construction—showed that 23 states and the District of Columbia reported an increase in November compared to October, while 23 states lost construction sector jobs. The four remaining states reported no change on a month-over-month basis. Florida, with the highest increase, added 7,600 construction jobs, while Indiana, on the other end of the spectrum, lost 3,400 jobs. Overall, the construction industry added a net 10,000 jobs in November compared to the previous month. In percentage terms, Minnesota reported the highest increase at 2.1% and Indiana reported the largest decline at 2.0%. Year-over-year, construction sector jobs in the U.S. increased by 211,000, which is a 2.6% increase compared to the November 2023 level. Texas added 32,200 jobs, which was the largest gain of any state, while California lost 11,500 construction sector jobs. In percentage terms, Alaska had the highest annual growth rate in the construction sector at 20.3%. Over this period, Maryland reported the largest decline of 2.3%. For this analysis, BLS combined employment totals for mining, logging, and construction are treated as construction employment for the District of Columbia, Delaware, and Hawaii. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

State-Level Employment Situation: November 20242024-12-23T13:15:43-06:00

2024 Third Quarter State-Level GDP Data

2024-12-20T13:15:22-06:00

Real gross domestic product (GDP) increased in 45 states and the District of Columbia in the third quarter of 2024 compared to the second quarter of 2024 according to the U.S. Bureau of Economic Analysis (BEA). Iowa reported no change during this time. The percent change in real GDP ranged from a 6.9 percent increase at an annual rate in Arkansas to a 2.3 percent decline in North Dakota. Nationwide, growth in real GDP (measured on a seasonally adjusted annual rate basis) increased 3.1 percent in the third quarter of 2024, which is roughly the same as the second quarter level of 3.0 percent. Retail trade, health care and social assistance, and information were the leading contributors to the increase in real GDP across the country. Regionally, real GDP growth increased in all eight regions between the second and the third quarter. The percent change in real GDP ranged from a 3.9 percent increase in the Southwest region (Arizona, New Mexico, Oklahoma, and Texas) to a 1.4 percent increase in the Plains region (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota). At the state level, Arkansas posted the highest GDP growth rate (6.9 percent) followed by Alabama (6.0 percent) and Mississippi (5.1 percent). On the other hand, three out of the seven states that makes up and Plains region, South Dakota (-0.8 percent), Nebraska (-1.4 percent), and North Dakota (-2.3 percent) along with Montana (-0.1 percent) posted an economic contraction in the third quarter of 2024. The agriculture, forestry, fishing, and hunting industry increased in 25 states, was the leading contributor to growth in five states including Arkansas, Alabama, and Mississippi, the states with the largest increases in real GDP. In contrast, this industry was the leading offset to growth in 14 states including North Dakota, Nebraska, South Dakota, and Montana, the only states with declines in real GDP. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

2024 Third Quarter State-Level GDP Data2024-12-20T13:15:22-06:00

Single-Family Permits Up in October 2024  

2024-12-16T09:17:34-06:00

Over the first ten months of 2024, the total number of single-family permits issued year-to-date (YTD) nationwide reached 846,446. On a year-over-year (YoY) basis, this is an increase of 9.4% over the October 2023 level of 773,526. Year-to-date ending in October, single-family permits were up in all four regions. The range of permit increases spanned 13.6% in the West to 7.2% in the South. The Midwest was up by 12.4% and the Northeast was up by 10.8% in single-family permits during this time. For multifamily permits, three out of the four regions posted declines. The Northeast, driven by New York, was the only region to post an increase and was up by 26.6%. Meanwhile, the West posted a decline of 30.1%, the South declined by 21.4%, and the Midwest declined by 5.0%. Between October 2024 YTD and October 2023 YTD, 46 states posted an increase in single-family permits. The range of increases spanned 33.0% in Montana to 0.7% in Florida. New Mexico (-1.3%), the District of Columbia (1.4%), New Hampshire (-2.6%), Alaska (-4.4%), and Hawaii (-5.2%) reported declines in single-family permits. The ten states issuing the highest number of single-family permits combined accounted for 62.9% of the total single-family permits issued. Texas, the state with the highest number of single-family permits, issued 136,374 permits over the first ten months of 2024, which is an increase of 9.7% compared to the same period last year. The second highest state, Florida, was up by 0.7%, while the third highest, North Carolina, posted an increase of 7.9%. Year-to-date ending in October, the total number of multifamily permits issued nationwide reached 403,422. This is 16.2% below the October 2023 level of 481,612. Between October 2024 YTD and October 2023 YTD, 19 states recorded growth in multifamily permits, while 31 states and the District of Columbia recorded a decline. Rhode Island (+143.5%) led the way with a sharp rise in multifamily permits from 322 to 784, while Idaho had the biggest decline of 56.6% from 4,899 to 2,126. The ten states issuing the highest number of multifamily permits combined accounted for 62.9% of the multifamily permits issued. Over the first ten months of 2024, Texas, the state with the highest number of multifamily permits issued, experienced a decline of 24.6%. Following closely, the second-highest state in multifamily permits, Florida, saw a decline of 26.4%. California, the third largest multifamily issuing state, decreased by 31.2%. At the local level, below are the top ten metro areas that issued the highest number of single-family permits. For multifamily permits, below are the top ten local areas that issued the highest number of permits. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Single-Family Permits Up in October 2024  2024-12-16T09:17:34-06:00
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