VIDEO: Homebuilding Leader Says Skilled Labor Shortage Adds $2,500 to Cost of New Homes

Ed Brady, CEO of the Home Builders Institute, says the home construction industry faces a coming crisis because of a shortage of workers.

The home construction business has had a severe shortage of workers for years. The Home Builders Institute estimates the industry needs 700,000 additional workers a year to keep pace with demand.

Without those workers, construction projects take longer, timelines become more unpredictable, and construction costs rise. Brady estimates that lost time and delays from labor shortages add about $2,500 to the cost of each new home, on average.

In total, HBI estimates the skilled-trades construction worker shortage costs the nation $10.8 billion a year in added costs.

Watch the interview with Brady in the video above.