“The Forecast” is a monthly report of industry outlook news to help Pros plan their jobs, keep up with the market and anticipate developing trends.
Major energy projects and rising skilled trades retirements are increasing the ongoing worker shortage.
Different times of year offer competitive advantages during the home building process.
High demand for skilled labor continues to drive the 2026 construction market. Residential building must compete for a limited pool of Pros, as specialized infrastructure projects draw talent away from traditional home construction.
The surge in non-residential infrastructure is putting pressure on the demand for residential workers. Skilled trades Pros are particularly needed for the following types of trending projects:
Data center construction
Energy Infrastructure
Manufacturing facilities
Electricians and specialty trades are seeing especially high demand in these sectors. This cross-industry competition means homebuilders are no longer just competing with each other, but with heavy industrial projects that may offer more robust benefit packages.
Some building firms are shifting their focus toward total compensation to attract talent. In a market where 92% report difficulty finding qualified workers, benefits can boost retention.
For years the building industry has faced a worker shortage, especially in skilled trades, that goes beyond short-term economic cycles. The scale of the current labor shortage is significant:
An estimated 349,000 new workers will be needed this year alone.
Anticipated spending increases for 2027 will push that requirement to 456,000.
Roughly 20% of the workforce is over age 55, with 41% of current workers projected to retire by 2031.
To bridge this gap, many firms are moving toward long-term human capital investment rather than short-term wage bidding. According to Associated General Contractors of America data, 45% of firms cite labor shortages as the primary cause of project delays, prompting a shift in strategy:
Investment in skills: 42% of firms have increased spending on internal training and professional development.
Digital outreach: 55% are leveraging social media and digital advertising to reach a younger demographic.
Early pipeline development: Over half of surveyed firms (52%) are now active in high schools and technical colleges to secure the next generation of the workforce.
From permitting to closing, building a house takes more than seven months. This includes about 40 days from the initial authorization to groundbreaking, then about six months of construction through the final inspections and closing.
The following are the average build times for the different stages of home construction. These stages often overlap and save time, but delays due to weather, labor shortages or permitting challenges can erase those gains.
Preparing the site and laying the foundation: 2-4 weeks
Framing: 1-2 months
Installing the plumbing, electrical and HVAC: 1-2 months
Installing insulation and drywall: 1-2 weeks
Completing exterior and interior finishes: 4-8 weeks
Conventional wisdom holds that spring is the best time of year to begin building a home. The following are the arguments for beginning to build homes in the spring.
Better weather between winter cold and summer heat
Longer daylight hours mean longer, safer working days
Materials are more readily available. Later in the year, there’s a greater chance that supplies will become scarce, leading to delays
Materials such as concrete and asphalt cure faster and are more manageable in warm weather
Regarding major remodeling projects, late spring and summer can be popular with homeowners who have school-age families. Big projects are less disruptive during summer vacation compared to when school is in session.
However, fall starts have the advantage of avoiding summer’s peaks. For instance, according to the Bureau of Labor Statistics, building materials cost about 2% less than the yearly average from November-January. Other advantages are:
Construction costs can be lower in the off-season due to less competition.
Less springtime rain means fewer rain delays and less likelihood of dealing with mud.
After the peak summer season, contractors are more available, making crews more likely to stay on schedule.
Fall is traditionally slower for government agencies and banks, so permits and inspections can be scheduled more quickly.
Builds that start in fall may be positioned to take advantage of the spring market for buying and selling houses. The season can have more competition that drives up prices, but spring’s advantages for the housing market include the following:
Maximum curb appeal with flowers in bloom
Nicer weather than winter or summer
Higher home inventories
Better timing for families buying homes who can close by summer and move in before school starts.
Other factors that impact scheduling include climate and geography, as sweltering summers or snow-heavy winters can disrupt builds. The scope of individual projects can dictate the time of year for building. Larger projects that demand more time outdoors are best for spring or summer, while interior renovations can be scheduled during the winter.