Wage growth for residential building workers remained subdued during the first quarter of 2026, reflecting continued softness in housing construction activity and easing labor demand. According to the latest data from the U.S. Bureau of Labor Statistics, both nominal and inflation-adjusted wage gains moderated further, marking a clear transition from the rapid post-pandemic expansion toward a slower labor market.
In nominal terms, average hourly earnings (AHE) for residential building workers increased 2.1% year-over-year in March 2026, down notably from the 9.4% peak reached in mid-2024 and continuing the broader cooling trend observed throughout 2025.
After accounting for inflation, real wages declined 1.2% year-over-year in March 2026, indicating that wage gains have not fully kept pace with broader price increases. Real wage growth strengthened temporarily during parts of 2024, reaching a peak of 6.2%, but has since softened alongside the slowdown in residential construction activity.
Meanwhile, the number of open, and unfilled construction sector jobs has continued to trend downward, consistent with weaker housing demand and slower construction hiring.
Despite the slowdown in wage growth, residential building workers’ wages remain competitive relative to other industries:
- 8.4% higher than the manufacturing sector ($36.54 per hour)
- 22.4% higher than the transportation and warehousing sector ($32.34 per hour)
- 3.6% lower than the mining and logging sector ($41.10 per hour)
Note:
- Data used in this post relates to all employees in the residential building industry. This group includes both new single-family housing construction (excluding for-sale builders) and residential remodelers but does not include specialty trade contractors.
