In an effort to reel in and keep current workers, construction companies are pumping up pay. The labor market for the construction sector is meager at best, with labor statistics indicating as many as a half million construction jobs remain unfilled. Add to that the number of construction workers quitting the profession, and you have a labor shortage crisis.
Lender data shows there is a slowdown of multi-family home construction.
Freddie Mac still projects multi-family gross income will remain strong nearing the end of the year as long the economy stays relatively stable.
Analysts say rent growth rose 16% from a year ago last June, and multifamily demand remains high despite rising costs.
The recession the U.S. economy is now in is officially taking a serious toll on the construction industry. Despite a shortage of workers, companies are hiring less as it's becoming more expensive to operate. The Bureau of Labor Statistics say the construction sector experienced one of the sharpest reductions in job openings of all sectors.
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Pessimism over the Biden Administration's policies and actions to get the economy back on track is starting to seep even more into the construction sector. The National Association of Homebuilders reported the confidence of homebuilders fell 12 points in July. That's the lowest it has been since the world virtually shut down in May of 2020 over fears coronavirus
