Co-authored by Kiley Yuthas, Graduate Intern
America’s Housing Comeback, a partnership between National League of Cities (NLC), American Planning Association (APA), the National Association of Home Builders (NAHB) and the National Association of REALTORS® (NAR), accelerates and builds on successful housing supply initiatives at the local level by enhancing federal-local and public-private partnerships.
On Feb. 17, 2026, NLC, APA, NAHB and NAR convened the America’s Housing Comeback Advisory Group in Orlando, Fla. at the 2026 NAHB International Builders’ Show to discuss challenges and opportunities for workforce development in the residential construction sector.
Key Takeaways from the America’s Housing Comeback Advisory Group
Economic Impacts of a Skilled Labor Shortage
Assistant Vice President of Forecasting and Analysis at NAHB Danushka Nanayakkara-Skillington explored the economic impact of workforce on housing supply, highlighting the connections between the skilled labor market, high building costs and housing affordability challenges nationwide. Key takeaways from her presentation included:
- Homeownership remains out of reach for many Americans. NAHB estimates a 1.2 million housing unit deficit nationwide, with most age cohorts expected to experience a decline in homeownership rates by 2035 (PDF), based on low-immigration population projections. Low housing supply contributes to high home prices, which have outpaced income growth for the past two decades.
- High interest rates and affordability constraints have caused residential construction employment to lag behind nonresidential construction sectors. The residential construction workforce was reduced by over 41,000 jobs in 2025 (PDF). NAHB forecasts predict that job growth in the industry will continue to slow down due to uncertainty and cost-cutting.
- A shortage of skilled labor contributes to high construction costs for residential housing. A report by the Home Builders Institute (PDF) found that a lack of available workers contributed extended construction cycle timelines by about two months and resulted in an additional $1,300 in monthly carrying costs per home constructed. It also found that 19,000 home build contracts were deferred or lost due to the cost impact of labor shortages. The report estimates that the total economic impact of a nationwide skilled labor shortage in the construction industry totaled $10.8 billion annually.
Reimagining Workforce Development Pipelines
Ed Brady, CEO, and Emily Price, Senior Vice President, represented the Home Builder Institute (HBI) at the convening, where they explored strategies to grow the housing construction workforce, addressed common misconceptions about skilled construction trades and shared opportunities to engage new and diverse communities in training and certification programs.
- Inspiring interest in the trades can start early. Career Training Education (CTE) can be implemented in elementary, middle and high schools to spark students’ interest and highlight available career pathways. CTE programs like HBI’s Future Builders of America offer hands-on learning and pre-apprenticeship training for students in schools across the country. Presenters highlighted that early engagement with construction trades can help direct students into trade fields and illuminate career options outside of 4-year higher education degree programs. Early outreach can also help inspire more young women and people from diverse communities to pursue careers in the trades.
- Correcting misconceptions that construction jobs are low-paying. As many college graduates face the prospect of low wages and high unemployment rates, advocates argue that construction industry leaders must highlight the higher than average rates of pay available in the housing construction industry as compared to similar job categories to motivate interest in skilled trades as a path to financial stability for young people.
- Workforce development programs like the HBI offer promising models for engaging new workers in home construction trades. HBI offers no-cost training and certification in skilled labor fields, with initiatives designed to engage people re-entering the community after incarceration, military servicemembers and young people participating in the US Job Corps.
Public Sector as Stakeholders in Local Housing Production
Local leaders and municipal offices are essential partners in facilitating housing construction. A panel featuring Nick Julian (Director, NAHB), Zachary Packard (Staff Counsel, NAHB), Jeff Pemstein (AVP, NAHB), and Sue Schwartz (President, APA) discussed how workforce and communications challenges must be addressed to reduce friction between builders and city administrators.
- Limited staff capacity within local governments can create bottlenecks for housing construction. Panelists pointed to staff shortages, turnover and a rise in retirements among city planners, city attorneys, permit review staff and building inspectors as factors with the potential to slow down the permit approval process, delay the production of housing and increase costs. Expertise in these positions is vital to providing developers, both corporate and mom-and-pop, with clear guidance and to ensure the city is following federal and state regulations.
Leaders in the home building construction industry are thinking long-term to create strong workforce pipelines and increase the pool of skilled labor to reduce costs associated with housing production. Discussions at the convening emphasized the importance of collaboration between builders, developers, skilled trade organizations and local governments to address construction barriers and mitigate delays in planning and approvals. Strengthening these public-private partnerships is key to improving efficiency and easing cost pressures for residents.
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