The second quarter of 2026 saw a continued decline in wage growth for residential building laborers, which was a result of a decrease in labor demand and a decrease in housing construction activity.
Both nominal and inflation-adjusted wages have further weakened, extending the cooling trend that emerged following the strong wage gains of the post-pandemic period, according to the most recent data from the U.S. Bureau of Labor Statistics.
In June 2026, the Average Hourly Earnings (AHE) of residential building laborers increased by 1.0% year over year, reaching $39.74 per hour in nominal terminology.
This is a significant decline from the 9.4% peak that was recorded in mid-2024 and is consistent with the broader cooling trend that was observed throughout 2025 and into 2026.
In June 2026, real wages decreased by 2.4% year over year to $11.95 per hour after inflation was taken into account.
During portions of 2024, real wage growth temporarily increased, reaching a peak of 6.2%.
However, it has since weakened as nominal wage growth has slowed and inflationary pressures have remained elevated and elevated.
In June, the number of unfilled and open positions in the construction sector increased.
The demand for construction laborers is being sustained by the ongoing strength of construction-related activity, which includes data center construction.
The wages of residential construction workers are still competitive in comparison to those of other industries, despite the slowdown in wage growth.
$8.2% more than the manufacturing sector ($36.74 per hour)
$22.1% more than the transportation and warehousing sector ($32.55 per hour)
$42.01 per hour, which is 5.4% less than the mining and forestry sector)
Please be advised:
The data utilized in this document pertains to all employee’s in the residential building industry. This category encompasses residential remodelers and new single-family housing construction (excluding for-sale builders), but it does not include specialty trade contractors.
[Read more about this topic on eyeonhousing.org]