Labor Access Challenges Persist

Home builder confidence remains solid at this early stage of 2017, and it mirrors NAHB's expectations for continued growth of single-family construction throughout the year. For 2016, single-family starts were up 9%, while multifamily construction experienced month-to-month volatility in the second half of the year.

However, this growth will also cause the ongoing labor shortage to worsen. In a new NAHB industry survey, builders identified access to labor as the biggest challenge they anticipate for 2017, with lot availability coming in second.

Labor market data confirm high levels of unfilled construction sector jobs, and builders can expect wages to grow in the coming year. While that is a positive for housing demand, it's a concern for builders' bottom line.

–NAHB Chief Economist Robert Dietz

Industry Insights

Builders' No. 1 Problem: Availability of Labor

Survey shows the dramatically rising levels of builder concern in recent years.

Residential Construction Employment Solid in December

Though the overall trend for open jobs continues to increase.

Remodeling Market Remains Positive in 4th Quarter

The majority of remodelers continue to report strong market activity.

Builder Confidence Holds Firm in January

NAHB economists predict 10% growth for single-family construction in 2017.

Market Trends

Existing Sales for 2016 Best in a Decade