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News & Press: Other Home Improvement News

Home Improvement Professionals Could Cost More in the Future

Friday, April 28, 2017   (0 Comments)
Posted by: Pam Heidel

 

 

NAHB recently included a special set of questions in their monthly NAHB/Wells Fargo Housing Market Index to address a topic of current interest to the housing industry.  These questions asked builders their top ten significant problems they faced in 2016 and expected to face in 2017.  The top reason reported was cost and availability of labor. The share of single-family builders reporting labor cost/availability problems was a whopping 78%.

 

In an attempt to answer the question:  “Will  young adults entering the labor force help this labor shortage?”, NAHB conducted a poll with 2,001 young adults ages 18-25 on their attitudes toward the trades.

 

What are the career plans for young adults?  Results indicate medical, management/business and I.T. top the list.  A mere 3% stated they planned to go into the construction trades even with performing arts and government. 

 

Those that plan on entering construction, stated the top reason for that choice was that it is the career they were most interested in.  Others told NAHB they might reconsider and go into a trade profession if their annual salary was $75,000 or greater.

 

These findings are of great concern to the home improvement industry.  In the recently released HomeAdvisor Farnsworth Index, thousands of home professionals were also asked about labor availability and costs.  On average, 54% reported having challenges hiring skilled laborers in the past 12 months. 

 

For home building and the home improvement industry this is concerning.  The home improvement market is growing and in the most recent Home Improvement Research Institute’s Size of Market Report, the industry is expected to see an average increase of 4% per year over the next five years.  Homeowners looking to hire professionals may pay higher prices in the future to get the job done. 

 

You may read NAHB’s full report on “Young Adults & The Construction Trades” on their website.

 

Keep posted on the quarterly HomeAdvisor-Farnsworth index on HomeAdvisor’s website.

 

Contact Home Improvement Research Institute to learn more about becoming a HIRI member.


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