More than half of jobs in the U.S. require education and training beyond a high school degree but not a four-year degree, yet only four in 10 people have had access to the skills training and supportive services necessary to fill these roles, demonstrating the importance of boosting jobs in residential construction. The residential construction industry is emblematic of how closing this skills gap can boost opportunities for working families and local economies.

An analysis by the National Association of Home Builders (NAHB) found that hiring needs for construction exceed 700,000 jobs per year, with builders reporting the greatest challenges hiring workers for skilled trades, such as carpenters and electricians. A survey conducted by the Associated General Contractors of America and the National Center for Construction Education and Research found that 88 percent of firms reported shortages for craft workers. Four-fifths of the companies surveyed also reported a shortage of workers for salaried jobs such as superintendents and project managers. The top reason contractors cite for hiring difficulties is that available candidates are not qualified to work in the industry.

The housing workforce shortage is a key contributor to rising housing costs. A study commissioned by the Home Builders Institute and the University of Denver in collaboration with NAHB estimates that longer construction times associated with the skilled labor shortage create an aggregate economic impact of more than $10.8 billion per year. This shortage also translated to a loss of approximately 19,000 homes that were not built in 2024. Addressing the skills gap requires an integrated approach that addresses people’s holistic needs.

Boosting Jobs in Residential Construction: Community-Based Organizations Are Key to Addressing the Skills Gap

Addressing the skills gap requires an integrated approach that addresses people’s holistic needs, in addition to equipping them with required training and certifications. This is particularly true for low-income communities where people are often struggling with debt and may be disconnected from traditional workforce training opportunities. Community-based organizations, like the members of LISC's Financial Opportunity Center® (FOC) and Bridges to Career Opportunities (Bridges) networks, are critical components of the workforce development ecosystem. These organizations provide wrap-around services such as financial coaching, help accessing public income supports, and connection to community resources.

An independent evaluation of LISC’s FOC model found that participants in these integrated programs are more likely to be employed year-round, reduce non-asset-related debt, and build positive credit histories than those in programs offering employment assistance alone. LISC now supports more than 120 FOCs in urban and rural communities throughout the county, including many helping to train clients for work in the residential construction industry.

Read the full article about jobs in residential construction lowering housing costs by Lauren Rosenbaum at LISC.