Construction Job Market Booms Despite Inventory Shortages

The construction job market is booming, with 23,000 jobs added in June, including 800 in residential construction. This growth reflects the rebound in the new home market and the trend of homeowners upgrading their properties instead of selling. Jobs for residential buildings are up 11% compared to pre-pandemic levels, while employment for nonresidential buildings increased by 1.8%. The lack of existing-home inventory has supported new construction, as homeowners are reluctant to sell and lose their low mortgage rates. However, the construction industry is facing labor shortages and rising material prices, making affordable single-family construction more challenging.