More Builders’ Profits Taking a Hit from Labor Shortages
A recent NAHB survey found that over the last year, the average cost of builder-employed laborers increased 5.2% and the cost of subcontractor work rose 7.2%.
Comparing those numbers to 2018’s overall inflation (just 2.9%) helps explain why the pace of residential construction continues to be flat: The cost increases are not only resulting in higher home prices for buyers, but a growing number of builders are feeling the pinch as well.
