The Expert Podcast

• The Hidden Issue in Affordable Housing:
  • There's a significant shortage of affordable homes, and the solution isn't as simple as rising interest rates or inflation.
  • The real issue behind the high cost of housing is the shortage of skilled construction workers.
• Key Factors in Building a House:
  • To build a house, you need more than just materials and financing.
  • Skilled labor is essential. Without labor, even with sufficient financing, a house can't be built.
• The Labor Shortage:
  • Construction requires skilled workers, such as framers, roofers, electricians, and plumbers, many of whom must be licensed.
  • Even low-skill labor, like day laborers, is in short supply.
• A Worsening Problem:
  • Unlike other industries, there is no immediate solution to the construction labor shortage. People aren't entering the workforce in large numbers, and many existing workers are aging out or leaving the industry.
  • There's no quick fix like automating construction, as building a house requires manual, skilled labor at every stage.
• The Growing Gap in Job Openings:
  • In North Carolina, there are 440,000 unfilled construction jobs, a 30% increase from the previous year.
  • Despite overall unemployment dropping, construction job vacancies continue to rise.
• Delays in Home Building:
  • The shortage of workers has caused delays, with home construction taking 12-14 months compared to the 6-8 months it used to take.
  • The construction industry is facing a major crisis as the labor force continues to shrink.
• Impact on Home Inventory:
  • A lack of skilled workers is limiting the construction of new homes, exacerbating the housing crisis.
  • Even luxury homes contribute to freeing up lower-priced homes, but without workers, the entire housing market is stalled.
• Estimates of Housing Deficits:
  • The current shortage in housing is estimated at 5 million households.
  • The construction industry needs an additional 400,000 workers, and this gap is expected to grow to 500,000 in the coming year.
• The Core of the Housing Crisis:
  • The biggest barrier to resolving the housing crisis is the lack of workers to build homes.
  • Despite some material shortages, the workforce shortage is the critical issue.
• Call for Feedback:
  • For those in the construction industry: share your experiences. Are you seeing the same labor shortages and challenges in your area? What impact is it having on your work?