What’s in Store for Recruitment in the Homebuilding Sector this 2025

The US construction industry is projected to see an 8.5% growth in total starts for 2025, driven by a positive economic outlook, strong government spending, and anticipated declines in interest rates. While this presents significant opportunities for growth in the Residential and Nonresidential Building sectors, the picture for residential construction jobs is more complex. Mortgage rates remain high, hovering around 7% in 2024, and rising supply challenges threaten to slow housing starts.

As we enter 2025, the big question looms: Will residential construction jobs begin to decline, or can the industry adapt to maintain its workforce?

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Construction Categories Outlook for 2025

The housing market will be shaped by five key factors: economic growth, demographic shifts, affordability, sustainability, and regional migration patterns​. 

These dynamics are influencing how builders prioritise single-family housing, multifamily developments, and retrofits, each with its own unique workforce demands.

• Single-Family Housing
  Despite headwinds like elevated mortgage rates, demand for single-family homes remains strong, particularly in suburban and rural areas where buyers seek affordability and space. We’ll see high demand for project managers, site supervisors, and skilled tradespeople like carpenters and electricians.
• Multifamily Housing
  Urban housing density remains essential to address affordability issues and population growth. Multifamily projects require sustainability experts, advanced site supervisors, and architects to meet energy efficiency mandates and optimise space.
• Renovations and Retrofits:
  Retrofitting older homes to meet modern energy standards is a growing segment, spurred by sustainability goals and cost-saving measures. This means growth for specialisms like energy consultants, sustainability specialists, and skilled HVAC technicians.

Key Recruitment Challenges in Homebuilding

1. Skilled Labour Shortages

One of the most significant barriers to growth remains the shortage of skilled tradespeople in roles like carpentry, HVAC, and project management. According to industry insights, these gaps slow project timelines and increase operational costs​​.

Impact:

• Builders face delays and quality risks as they rely on smaller, less experienced teams.
• Skilled professionals, especially in high-demand regions, command increasingly competitive salaries, further stretching budgets.

What Can Be Done:

• Apprenticeship programmes and cross-sector recruitment can help bridge the skills gap.
• Targeted relocation packages and localised pay scales can attract talent to underserved regions.

2. Generational Shift

The ageing construction workforce is creating a talent void, with many organisations struggling to attract younger professionals. Adam Garvey’s 2024-25 Salary Insights Report warns of another looming issue: workforce imbalance. While competitive salaries are critical to attracting senior professionals, an overemphasis on top-tier roles risks creating top-heavy teams without sufficient mid-level and entry-level support​.

Why It Matters:

• Without middle management and emerging talent, companies face a lack of continuity and innovation.
• A balanced workforce is essential for long-term growth and adaptability.

Recommendations:

• Focus recruitment efforts on building a robust talent pipeline by supporting mid-level professionals and creating clear career progression opportunities for entry-level workers.
• Offer training and mentorship programmes that empower mid-tier employees to advance into senior roles.

Related read: Trends in the Facades Contracting Market

3. Land Development Pressures

Land acquisition has always been a cornerstone of homebuilding, but the landscape is growing increasingly challenging. According to data from John Burns Research & Consulting’s April 2024 Residential Land Survey, 73% of top residential land brokers rate demand for lots and land as “Hot” or “On Fire,” a staggering 49-percentage-point increase from just 24% in Q1 2023. This surge in demand, combined with limited supply, rising land prices, higher borrowing costs, and lengthier timelines for entitlement and permitting, has significantly increased the pressure on builders.

To address these challenges, the need for skilled land development specialists has never been greater. These professionals are essential for navigating zoning laws, managing financing complexities, and overcoming regulatory hurdles. Companies can also benefit from fostering partnerships with local governments and regulatory bodies to expedite approvals, creating a more streamlined path to securing viable land and maintaining project momentum.

4. Regional Imbalances

Labour shortages in the homebuilding sector are not evenly distributed, with high-demand areas like the Sun Belt in the US facing acute challenges in securing skilled workers. Meanwhile, other regions may experience an oversupply of talent, creating a mismatch between where jobs are needed and where workers are available. 

To address this, builders in high-demand areas must offer additional incentives, such as relocation assistance, housing allowances, and competitive pay, to attract skilled professionals. Leveraging workforce analytics can help identify regional disparities and enable proactive solutions. 

Additionally, implementing flexible working arrangements allows companies to tap into talent from less competitive regions without requiring full relocation, expanding their talent pool while managing costs.

5. Cross-Sector Competition

Adjacent industries like renewable energy and infrastructure are aggressively recruiting from the same talent pool, including engineers, tradespeople, and project managers. This competition makes it harder for homebuilders to secure top talent.

How to Stay Competitive:

• Strengthen Employer Branding: Highlight the homebuilding sector’s meaningful contributions to sustainability, affordable housing, and community development to attract purpose-driven candidates.
• Offer Modern Benefits: Provide flexible work arrangements, sustainability-focused initiatives, and competitive compensation packages to resonate with today’s workforce.
• Partner with a Reputable Recruitment Agency: Leverage industry expertise to identify, attract, and secure skilled professionals efficiently, ensuring access to the best talent in a competitive market.

By adopting these strategies, homebuilders can better position themselves to compete for talent and build teams that meet the demands of 2025 and beyond.

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Conclusion: Building a Workforce Ready for 2025

As the homebuilding sector moves into 2025, it faces a mix of opportunities and challenges. The projected 8.5% growth in construction starts highlights the industry’s resilience and potential, but it also underscores the need for strategic workforce planning to sustain this momentum. Addressing skilled labour shortages, generational shifts, land acquisition pressures, and regional imbalances will require proactive, innovative recruitment strategies.

To remain competitive, companies must balance their workforce by investing in apprenticeship programmes, supporting mid-level talent, and leveraging incentives to attract skilled professionals to high-demand regions. The need for land development specialists is especially critical, as builders navigate rising costs and complex regulatory landscapes. At the same time, strengthening employer branding and embracing flexible work arrangements can help attract talent from a broader, more diverse pool.

By focusing on long-term workforce sustainability, the homebuilding industry can overcome these challenges and position itself for continued growth.

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