Residential Building Worker Wage Growth Slows in March 2025

According to the most recent report from the US Bureau of Labor Statistics (BLS), wage growth for residential building workers continued to decline in March 2025, showing a softening in the construction labor market.

In March 2025, average hourly wages (AHE) for residential building workers reached $38.76, a 4.5% increase from $37.10 the previous year.

This represents a continuous slowing in year-on-year pay growth, which peaked at 9.3% in June 2024.

The recent downturn is due to an easing of pandemic-related manpower shortages and a lowering of labor demand in the construction sector.

In March, job vacancies in the construction labor market fell as firms paused hiring plans in response to persistent economic uncertainties.

Despite slowing pay increases, residential building workers’ wages remain competitive:

• 10.2% more than the manufacturing industry ($35.17 per hour).
• 24.0% higher than the transportation and warehousing sector ($31.25 per hour)
• 3.7% lower than the mining and logging sector ($40.23 per hour).

Note: The information presented in this post applies to all employees in the residential building sector. This category includes both new single-family dwelling construction (excluding for-sale builders) and residential remodelers, although it does not include specialty trade contractors.

[Read more about this topic on Eyeonhousing.org]