A landmark study released by the Home Builders Institute (HBI) and National Association of Home Builders (NAHB) reveals the skilled labor shortage is costing the residential construction industry $10.8 billion annually and preventing the construction of approximately 19,000 single-family homes.

The University of Denver-conducted research, supplemented by NAHB analysis, found that labor shortages are extending construction times by an average of nearly two months, with smaller builders experiencing even greater delays. Direct costs from prolonged construction timelines total $2.7 billion per year, while lost home production accounts for $8.1 billion in economic impact.

The study highlights how workforce shortages are intensifying the housing affordability crisis by reducing new home supply and increasing construction costs. Extended building times create higher carrying costs for builders and ultimately contribute to elevated home prices for consumers.

"Through hands-on training programs and industry-recognized certifications, HBI is equipping the next generation of construction professionals with the skills needed to meet growing demand," said HBI President and CEO Ed Brady, emphasizing the organization's role in addressing the shortage.

NAHB Chief Economist Dr. Robert Dietz called the findings evidence of an urgent need for strategic interventions, noting the economic implications extend beyond home building to the broader economy. Both organizations are pursuing collaborative programs, education initiatives, and advocacy efforts to expand the skilled workforce and mitigate the documented economic impacts.