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Builders reported labor shortages in 14 of 16 construction trades covered by the September 2026 NAHB/Wells Fargo survey. The average shortage rate across nine consistently tracked trades rose to 47%, while builders reported a median 4.2% increase in labor costs over the previous 12 months.
Homebuilding labor shortages rose across most trades in the September 2026 NAHB/Wells Fargo Housing Market Index survey, while builders reported labor costs had increased a median 4.2% for the same home over the prior 12 months. The findings point to greater workforce pressure for builders than in the survey’s April 2025 results, even as housing starts remain below levels recorded during the mid-2000s building boom.
The survey asked builders about shortages in 16 specific trades, counting both serious shortages and some shortage. Reported rates ranged from 33% for excavators and building maintenance managers to 58% for workers performing finished carpentry. Shortages were unchanged for plumbers, at 45%, and HVAC workers, at 43%; they increased at least slightly in the other 14 trades compared with April 2025.
The largest increases were reported for framing crews, where the shortage rate rose 9 percentage points to 57%; landscaping workers, up 7 points to 39%; and roofers, up 6 points to 36%. Across nine trades NAHB has tracked consistently since 1996, the shortage rate averaged 47% in September, up from 42% in April 2025.
The report also said the median increase in labor costs for the same home over the preceding 12 months was 4.2%. That figure describes the survey’s reported median cost increase; the source does not provide a breakdown by trade, region, or builder size.
Higher Labor Costs Pressure Builders
For homebuilders, shortages can make it harder to staff projects across multiple stages, from framing and roofing to finishing work. When qualified workers are less available, builders may face added pressure on labor budgets and project schedules. The survey documents reported shortages and cost increases, but does not quantify how many projects were delayed or how much those pressures changed home prices.
The findings also matter against the reported level of construction activity. NAHB’s comparison places the September shortage rate for its nine consistently tracked trades above any level recorded during the 2004–2006 housing boom, when annual housing starts were consistently above 1.8 million. By comparison, August 2026 housing starts were reported at a seasonally adjusted annual rate of under 1.3 million. The contrast suggests that labor availability is a concern even at a lower pace of homebuilding, though the survey does not establish why shortages rose or what effect they will have on future construction.
For prospective buyers, labor costs are one potential input into the expense of building a home. The survey alone cannot show whether builders will pass higher costs on to buyers, absorb them, or adjust construction plans.
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Shortages Rebound After Earlier Declines
The latest increase follows a period in which reported residential construction labor shortages declined consistently from 2022 through 2025, after reaching a peak during the COVID-19 pandemic, according to the source report. The September 2026 findings therefore mark a rise from the previous survey comparison, rather than a continuation of that earlier decline.
NAHB’s nine-trade measure offers a longer comparison because those trades have been tracked consistently since 1996. On that basis, the shortage rate rose five percentage points between April 2025 and September 2026. Results for the full 16-trade list show that shortages are uneven: finished carpentry had the highest reported rate, while excavators and building maintenance managers had the lowest. The survey reports builders’ assessments and should not be read as a direct count of unfilled jobs.
Survey Leaves Project Effects Unclear
The published figures do not specify how many builders responded, provide regional or company-size breakdowns, or quantify the number of vacant positions. They also do not show whether reported shortages led to construction delays, reduced output, or higher prices for buyers. The 4.2% median cost increase is not broken out by trade, so the source does not identify which workers or locations contributed most to the rise.
The survey records builders’ reports of labor availability; it does not establish the causes of the increase. It is also unclear whether the September results signal a sustained reversal of the decline reported between 2022 and 2025 or a shorter-term change.
Future Surveys Will Test the Trend
Further NAHB survey results can show whether shortages continue to rise across trades or ease in later reporting periods. Builders’ reported labor costs and the next housing-starts figures will also provide additional measures of construction conditions, but the source report does not announce a specific date for the next labor-shortage update.
For now, the September survey establishes a comparison with April 2025: shortages increased in 14 of 16 trades, the nine-trade average reached 47%, and labor costs rose a median 4.2% over 12 months. Whether those pressures alter project schedules, construction volumes, or home prices remains unconfirmed.
Key Questions
How many construction trades reported higher shortages?
Shortage rates rose in 14 of the 16 trades covered by the September 2026 survey, compared with April 2025. Rates for plumbers and HVAC workers were unchanged.
Which trade had the highest reported shortage?
Finished carpentry had the highest shortage rate, at 58%. Excavators and building maintenance managers were at the low end, both at 33%.
How much did builders’ labor costs increase?
Builders reported a median 4.2% increase in labor costs for the same home over the previous 12 months. The report does not break that figure down by trade or region.
Does the survey show that labor shortages raised home prices?
No. It reports shortages and higher labor costs, but does not measure whether builders passed those costs on to homebuyers or quantify any effect on home prices.
Source: rss
