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Builders reported shortages in 14 of 16 surveyed trades in September 2026, reversing a decline in residential construction labor shortages seen from 2022 through 2025. The average shortage rate across nine consistently tracked trades reached 47%, while the median labor-cost increase for the same home over the prior year was 4.2%.
Homebuilding labor shortages increased across most surveyed trades in September 2026, while builders reported a 4.2% median rise in labor costs for the same home over the previous 12 months, according to results from the NAHB/Wells Fargo Housing Market Index survey. The findings point to renewed labor pressure for builders after reported shortages had declined from their pandemic-era peak through 2025.
The survey asked builders about shortages in 16 trades, counting both serious shortages and some shortages among workers they employ directly. Reported shortage rates ranged from 33% for excavators and building maintenance managers to 58% for workers doing finished carpentry. Fourteen of the 16 trade categories had higher shortage rates than in the prior survey, conducted in April 2025. Plumbers remained at 45% and HVAC workers at 43%, unchanged from that survey.
The largest increases were reported for framing crews, up 9 percentage points to 57%; landscaping workers, up 7 points to 39%; and roofers, up 6 points to 36%. These are changes in the share of builders reporting shortages, not estimates of how many workers are missing. The survey report does not provide a worker headcount for the gaps.
Across the nine trades tracked consistently since 1996, the shortage rate averaged 47% in September, up from 42% in April 2025. The report says that rate exceeds any recorded during the 2004–2006 housing boom. Separately, August 2026 housing starts were below a seasonally adjusted annual rate of 1.3 million, according to the source report. Builders also reported that labor costs for the same home rose by a median 4.2% over the preceding 12 months.
Labor Pressure Meets Slower Homebuilding
The combination of more widespread reported shortages and higher labor costs matters because residential construction depends on crews across multiple specialized trades. When builders have difficulty finding workers, work may take longer to schedule or complete, and higher labor expenses can add to the cost of building a home. The survey establishes that builders reported these pressures; it does not measure how much they have changed construction schedules, home prices or the number of homes completed.
The comparison with housing starts also puts the shortage figures in perspective. The nine-trade rate was higher than during the 2004–2006 boom even though August starts were below 1.3 million at an annualized rate, rather than consistently above 1.8 million during that earlier period. That contrast suggests labor availability cannot be understood simply by looking at the overall pace of homebuilding. It does not, on its own, establish why shortages have risen or how they will affect housing supply.
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Shortages Rebound After Declines
The September results mark a change from the recent direction of the reported labor shortages. The source report says shortages in residential construction declined consistently from 2022 through 2025 after peaking during the COVID-19 pandemic. The latest survey, compared with April 2025, shows that pattern has reversed across most of the trades included.
Comparisons over time are available on a consistent basis for nine trades dating to 1996. The survey also covers 16 trades in its latest results, but the longer historical comparison applies to the nine-trade group, not all 16. Keeping those measures separate matters when judging whether current labor conditions exceed past levels.
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Survey Limits and Open Questions
The published figures describe builders’ reports of shortages; they do not give the number of unfilled positions, the size of the available workforce or the share of projects delayed because of labor constraints. The survey results also do not establish which factors caused the increase from April 2025, or whether shortages are concentrated in particular regions or types of construction.
The reported 4.2% median labor-cost increase is for the same home over a 12-month period, but the source material does not break the figure down by trade, location or builder. It also does not quantify how much of any labor-cost increase is passed on to homebuyers. Those effects remain unclear from the survey data provided.
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Next Survey Will Test the Trend
The next comparable NAHB/Wells Fargo HMI survey results will help show whether the September increase persists or was a short-term shift. Readers can also look for updated reports on housing starts and construction costs to see whether the labor findings coincide with changes in building activity or expenses. The source report does not specify when the next labor-shortage results will be released.
Until further data are available, the September survey provides a snapshot of builders’ assessments, not a forecast of future shortages, home prices or construction volumes. Changes in the reported shortage rates and labor costs in later surveys will clarify whether pressure is continuing across trades.
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Key Questions
How many homebuilding trades reported higher shortages?
Builders reported higher shortage rates in 14 of the 16 trades surveyed in September 2026 compared with April 2025. Plumbing and HVAC shortage rates were unchanged.
Which trade had the largest reported shortage rate?
Finished carpentry workers had the highest shortage rate, at 58%. The survey counted builders reporting either a serious or some shortage.
How much did labor costs rise?
Builders reported a median 4.2% increase in labor costs for the same home over the previous 12 months. The source does not provide a breakdown by trade or region.
Does the survey show that labor shortages raised home prices?
No. The survey reports builders’ labor-shortage assessments and labor-cost changes, but the published figures do not quantify effects on home prices, project delays or construction volume.
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