July 20, 2026

Residential Construction Workforce Basics

Background 

Residential affordability is a significant issue in North Carolina, and construction labor shortages are a major contributor to the problem. In the years following the Great Recession, over 1,500,000 construction laborers left the workforce, resulting in a lack of individuals who can capably perform necessary building tasks. While employment numbers have rebounded somewhat in the last decade, North Carolina still has less laborers employed than they did in 2000, showing the long-lasting impact of labor reductions.

When there are fewer laborers available to help construct homes, labor costs increase and are passed onto potential homeowners or renters. In their 2025 Construction Labor Market Report, the National Association of Home Builders (NAHB) found that the labor shortage prevents construction on over 19,000 single-family homes annually in the United States. In North Carolina, these worker shortages contributed to a 63.4% increase in median home prices between January 2019 and December 2023. Addressing workforce labor shortages on even local scales is becoming an increasingly important tool for protecting housing affordability in our state.  

This guide is meant to inform local governments, non-profits, and other relevant organizations as they work to manage these labor shortages. Each section of this document provides basic background on construction labor career pathways, associated shortages, barriers to development, and real-world examples of possible interventions partners can take to address the issue. After using this document, you should be able to understand the context of construction labor shortages in your community and identify possible strategies to tackle them.  

Construction Labor Career Pathways:

Today, individuals looking to for employment in construction labor have a variety of pathways to enter the workforce. Knowing which pathways exist is a useful first step toward supporting and expanding these important programs.  

• Apprenticeship: A traditional career option in this sector, apprenticeships combine on-job training with formal education programs to ensure individuals can capably join the workforce. Generally, apprenticeships last several years, but participants are paid for their work and have formal learning paid for. Many high schools and community colleges offer pre-apprenticeship programs that allow individuals to gauge whether they'd like to transition into a traditional apprenticeship. 

• On-job training: Some trades require either no degree or only a GED for employment but will then have new employees participate in on-the-job training, where they learn as they work. In 2025, 71.4% of jobs in the field required some on-the-job training.

• Community College: Many community colleges offer Certificate programs or Associate's degrees in a variety of construction skills. These programs are often taught by professionals currently in the field and offer students specific hands-on experiences. For instance, Pitt Community College offers several degree choices in construction and each year have students build entire homes for community members as part of their learning.  Community colleges can be useful ways to achieve construction jobs that require certificates and basic post-secondary degrees.  

• Bachelor's Degrees: Some jobs in this sector require Bachelor's degrees. Though these are not especially common, the highest paying jobs (such as construction management or civil engineers) typically employ individuals with these degrees.  

• Alternative Pathways + Programs: Beyond the methods listed here, many local employers or workforce development organizations offer courses, trainings, or other programs to help prepare individuals. For example, Hope Renovations in Chapel Hill provides its own twelve-week program (see more below). 

What Do Labor Shortages Look Like? What Causes Them?

Labor shortages are found in many fields that participate in residential construction. In North Carolina, plumbers, pipefitters, and roofers are among trades with particularly impactful shortages. While the exact type and size of the shortages differ in each community, a high need for more skilled tradespeople exists across North Carolina. Construction employers across the state have shared several broadly experienced problems when describing the labor shortage:  

Shortage Trends  

1. Shortages are happening across all types of trades. 

• Research done by a team from UNC found that there were moderate, strong, or severe workforce shortages in all trades across a set of 14 regions of North Carolina. Essentially, all fields and all regions are experiencing noticeable worker shortages.

• In places like North Carolina, shortages are even more noticeable because of high development demand. The Association of Builders and Contractors of the Carolinas found that over 300,000 new workers would be needed to replace retirees; this number would fall well short of filling needs for new development projects.

2. Mid-career roles are especially difficult to fill. 

• When individuals age out of construction labor, they leave behind not only open roles but also gaps in knowledge. Many employers have described challenges in hiring laborers with advanced skills that have not yet made it to management positions.

3. Commercial and residential builders are competing to hire the same workers. 

• Because many trade skills can be used in both commercial and residential construction, the two categories of building employers have to fight for employees. Because residential construction jobs pay, on average, about $3 per hour less than nonresidential construction jobs, residential builders have a more difficult time overcoming shortages.

• Many young people are not aware of career options in construction labor. The NAHB found that only 6% of today's young adults have any interest in construction labor careers. While this is double what it was a decade ago, this is still a troubling proportion.

Issues with the Labor Pool 

1. Most current workers are from older generations, with fewer young people to replace them. 

• In the United States, 45% of construction workers were 45 or older in 2022. While this is only slightly more compared to the working population at large, the industry is quickly trending older.xii  

• Less than 1% of NC's licensed electricians are under 30 years old, similar to many other trades.

2. Individuals perceive construction jobs poorly despite demand and good pay. 

• A lack of support for programs that prepare high school students for trade work has resulted in warped opinions of construction labor from young people. Many young people report underestimating job factors like pay, career security, and advancement opportunities when it comes to trade jobs. 

• Demographics that don't traditionally participate in construction labor have a difficult time entering the field. This is primarily true for women, which make up only 11.3% of the total construction workforce. Obstacles for women include workplace discrimination, male-oriented facilities/equipment, and a gender pay gap.

 3. Potential workers' personal responsibilities shrink the labor pool. 

• Needs like childcare, transportation, and career navigation are all obstacles that can prevent people who are interested in construction from entering the workforce.  

• These factors impact many fields beyond construction labor, but they can be exacerbated for individuals trying to enter this field. For example, because construction labor has primarily been a male-employed field, many employers lack support for childcare. The Associated Builders and Contractors of the Carolinas found that 42% of women who left their jobs in 2025 cited childcare costs as a primary reason for leaving the field.

Workforce Development Issues  

1. Relevant programs are under-supported/ 

• Nonprofits, community colleges, and other workforce development partners that provide training can struggle to find external funding or sustain necessary program revenue.  

• For example, 65% of North Carolina's ApprenticeshipNC program budget for operations is funded by federal grants that expire in 2026. Without the grants renewing or alternative investment, core operations are at risk.

2. Instructors and other resources are often difficult to find. 

• The workforce shortage also extends into a shortage of instructors with requisite skills and experiences to teach disciplines in the construction trades. Community colleges and other educators often struggle to find willing and capable instructors to help train the next generation. 

Strategies for Addressing Labor Shortages

Workforce shortages are a critical barrier to residential affordability, but by combining proven strategies, local and state actors can more effectively attract and retain residential construction laborers. Methods that have been used to successfully support this goal generally include creating effective organizational partnerships, meaningfully engaging with potential workers, and offering accessible training programs to ensure gaps are filled across communities. 

In spring 2026, Carolina Across 100's Our State, Our Homes program organized a virtual event for three organizations – Pitt Community College, Carolinas Association of General Contractors, and Hope Renovations – to discuss how they are addressing these strategies and meeting construction workforce needs in North Carolina. Their experiences show how specific programmatic efforts can address the construction labor shortage.  

 

Engaging with Potential Workers

One of the core problems that workforce developers face is finding and attracting individuals for construction jobs. By meaningfully engaging with young people and individuals in non-traditional construction demographics, organizations can reload the talent pipeline. Engagement can be as simple as educational sessions, which may look like presentations in high schools or workforce organizations. Hope Renovations extensive involvement with women is a useful secondary example of what this work can look like.  

NC Case Study: Pitt Community College 

North Carolina's community college system, which is made up of 58 schools, is a key component of the state's workforce development infrastructure. Pitt Community College, which has the 7th highest enrollment in the system, does an exemplary job of engaging young people. Construction management is one of the college's most popular programs, demonstrating the impact a community college can have on supporting the construction workforce. Every year, PCC hosts a housing auction where program students build new homes for members of the local community. By displaying the homes prominently on campus, students are not only contributing to housing supply but also promoting awareness of construction as a possible career route. 

A key component of PCC's model involves engagement with young people. PCC offers free or reduced-fee coursework for high school students interested in the trades. Many of these students find the PCC program by presentations put on by faculty at local high schools. By actively seeking out students who may not know about construction labor, PCC is helping develop individuals who may address residential labor shortages. 

Contact: Maury Verzier, Chair of Construction Management + Tech Department 

 

Effective Organizational Partnerships

Workforce developers need to utilize inter-organizational partnerships to effectively cultivate a growing construction workforce.  The workforce development ecosystem can involve community colleges, primary educators, vocational schools, employers, nonprofits, local governments, and many more partners. Leveraging the unique skills and resources of each organization can ensure change happens on a variety of scales, from training delivery to employment.  

NC Case Study: Carolinas Association of General Contractors (CAGC) 

Spanning both North and South Carolina, CAGC has a heavy interest in developing a strong construction labor workforce. Working with their 800+ members, CAGC aims to engage with potential construction workers in a variety of ways. This includes supporting many student chapters at high schools and community colleges throughout both states. CAGC works primarily with commercial builders, but because of their size and scope, they are able to connect with numerous partners in the region, many of whom focus more heavily on residential construction work.  

One of CAGC's most successful programs is its Construction Bootcamp, a free course for individuals interested in construction labor skills. These courses are traditionally hosted at one of 16 partner community colleges in the region and take place over about two months. Programs include work-based learning, hands-on training with tools and equipment, as well as the opportunity for several professional certifications. Career coaches and job placement are core parts of the program that help ensure participants are ready to enter the workforce. By combining the efforts of CAGC, local community colleges, and participating employers, these programs demonstrate how connecting stakeholders can support workforce development. The Construction Bootcamps are a testament to CAGC leveraging its position as a critical partner in workforce development. While smaller organizations can target local challenges, CAGC can support broad-scale programs. 

Contact: Caroline Brigmon, Director of Education, Training, and Workforce 

 

Accessible Training Programs

Once partner organizations create effective development programs and identify potential participants, they need to make sure all interested individuals can participate.  

NC Case Study: Hope Renovations 

Hope Renovations is a Chapel Hill-based non-profit that works to train women and gender expansive folks in construction and repair. Founded by Nora El-Khouri Spencer in 2020, this program aims to develop labor by supporting demographics not traditionally employed in construction, most notably women and gender-expansive individuals. The majority of the participants in this program come from underserved backgrounds or marginalized communities. 

"If you can't see it, you can't be it." 

Hope Renovations offers a 12-week pre-apprenticeship program. Participants receive four weeks of core training then work in the field to hone their skills. Importantly, this program focuses on building or improving residential dwellings for individuals who are 55 years or older so they can age in place. This allows Hope Renovations to not only train workers but actively address local housing supply needs. Upon completion of the course, Hope Renovations' participants can navigate the construction job market with skills in not only trades but also networking, interviewing, and more. 

Contact: Nora Spencer, Founder and Chief Executive Officer 

Key Takeaways

The construction labor shortage is an impactful problem facing residential construction, especially in North Carolina. By creating and aligning a variety of workforce development strategies, community-based organizations can foster growth in construction careers, simultaneously addressing housing supply needs while promoting in-demand, good-paying jobs.  

Partners who are interested in developing the construction labor workforce to support residential affordability can start by: 

1. Identifying where specific trade skill shortages are in the community. Once these areas are pinpointed, promote partnerships with current professionals and educational institutions like community colleges to create or expand programs that responsive to local labor market needs. By partnering with a variety of organizations, workforce developers can align themselves to specific issues while still working across scales and maximizing resources.  
2. Engage with young people and groups that do not traditionally work in construction, such as women. By expanding the talent pool, communities can shift the typical demographic profile of the construction industry to effectively grow the workforce. 
3. Secure financial and political support for existing training programs or work to establish new ones. Many community colleges or non-profits can expand their reach with additional funding. In communities where programs do not exist or existing pathways are insufficient to meet industry demand, there may be opportunities to create new workforce pathways into the construction industry. 

More Resources

Our State, Our Homes 

CX100's housing-focused collaborative program with general housing resources. 

Final Portfolio: Construction Labor Shortages and Housing 

A report by UNC Public Policy students on the state of construction labor shortages in North Carolina. 

NCWorks Trainings 

The N.C. Department of Commerce provides trainings for a variety of workforce development skills. 

CWD Pro Certification 

A professional training program offered by the National Center for Construction Education and Research in Construction Workforce Development. 

Labor Market Reports 

The Home Builders' Institute regularly produces data that displays regional construction labor trends.