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Business

How construction workers are hurting the housing boom

Opening sequence

Opening sequence

Business

How construction workers are hurting the housing boom

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COMING UP:How construction workers are hurting the housing boom

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Transcript

00:00:01
>> Help desperately wanted. That's the message coming from home builders all around the country. A boom in new housing construction failing to find enough hands to meet the demand. Reuters reporter David Randell says, the situation is dire.>> It's not a crisis but it's getting there. Over the last two or three years, the number of workers that are needed has jumped by about 80% and those jobs just aren't being filled.
00:00:25
>> That's 200,000 good paying jobs that are just sitting there for the taking, according to the National Association of Home Builders. Why isn't anybody taking them?>> This still goes back to the great recession. You lost about a third of all construction workers, and they've found new jobs.
00:00:42
Maybe they're at an auto plant, maybe they started their own business. Maybe they're installing solar panels on roofs. And they just don't wanna come back, because they see it's a job that's either dangerous, and on top of that, it's cyclical. It's either really hot, or really cold.>> Those issues also keeping away the millennials who could provide a lot of new manpower, but are not.
00:01:03
The crackdown on immigration has made the shortage even worse. Construction workers that have gone back to Mexico can't be easily replaced. What does all this mean for labor costs? Randall repeats what the head of a construction company told him.>> I've had people come to my job sites and literally offer everybody working there a pay raise and I had to match it on the spot or else I'd just lose everybody.
00:01:26
>> And that's hurting the overall economy. With labor costs skyrocketing, home builders are shying away from affordable starter homes that lure first time home buyers and because of the shortage, even costlier homes can't be built as fast as buyers want them. Both having the same undesirable effect, lost sales.