- Construction Labor Market
Construction Labor Market
- Jul 10, 2015
- New Home Ambassador
- new home construction new homes new home starts
Quoting, John McManus writer for Builder Magazine's June 26 blog from the PCBC, " After a couple of days' immersion amongst residential builders, developers and other denizens of the Pacific Coast Builders Conference in San Diego this week, it's clear that people, writ large, is the No. 1 issue stressing the business right now."
So why is it so hard to find good people, who want to work hard and advance themselves and their career? That is the question plaguing the U.S. currently and we need to fix it.
Not so long ago, I was asked to consult with DR. Horton's North Carolina's management team, to review how we use Keller Williams' Recruit Select process to hire quality agents on their teams. I think one of the most shocking moments in the presentation was when I quoted an article that sited that 82% of the working public are always looking for a job, as the 10 managers looked around the room at each other, statistically 8 of the 10 had been or currently were looking for a "better" job, that was awkward.
Confusing? People are complaining about not finding jobs and employers are complaining they can't find people to fill the jobs? What is the solution?
Better training, better leadership and more focus on putting the right people in the right job.
So how does this effect the consumer and potential new home purchaser you ask?
It has created an amazing opportunity for the buyer to make money, gain equity and move into a brand new energy efficient home. Why, because most residential resale markets across the U.S. have rebounded and their is a shortage of good resale inventory, so a new home is the best play. New home prices have been held down because due to the labor shortage across the board, builders don't have suppliers, suppliers don't have workers and their is a lack of quality salespeople, as many left the industry in the recession!
Last week, after the great news that new home starts are up to an all time high, which sends a message that we're back, but, we are still only building 50% of what would be considered normal in a "down" market, let alone a robust market! This means we still have a low inventory, low supply market, with no quick ability to change it, so buy now. Rates are still at an all time historical low (3.75-4%) still way below the last 15 year average, which is closer to 6.5%, but will go up by the end of the year.
So if you or someone you know is looking for a job, career or just a great opportunity in the housing industry......apply now!