Wage growth for residential building workers continued to lose momentum in the second quarter of 2026, reflecting softer housing construction activity and weaker labor demand. According to the latest data from the U.S. Bureau of Labor Statistics, both nominal and inflation-adjusted wages have weakened further, extending the cooling trend that emerged after the strong wage gains of the post-pandemic period.
In nominal terms, average hourly earnings (AHE) for residential building workers increased 1.0% year-over-year in June 2026, reaching $39.74 per hour. This represents a notable slowdown from the 9.4% peak recorded in mid-2024 and continues the broader cooling trend observed throughout 2025 and into 2026.
After accounting for inflation, real wages declined 2.4% year-over-year in June 2026 to $11.95 per hour. Real wage growth strengthened temporarily during parts of 2024, reaching a peak of 6.2%, but has since weakened as nominal wage growth has slowed and inflationary pressures have remained elevated.
Meanwhile, the number of open, and unfilled construction sector jobs increased in June. Continued strength in construction-related activity, including data center construction, is supporting demand for construction workers.
Despite the slowdown in wage growth, residential building workers’ wages remain competitive relative to other industries:
- 8.2% higher than the manufacturing sector ($36.74 per hour)
- 22.1% higher than the transportation and warehousing sector ($32.55 per hour)
- 5.4% lower than the mining and logging sector ($42.01 per hour)
Note:
- Data used in this post relates to all employees in the residential building industry. This group includes both new single-family housing construction (excluding for-sale builders) and residential remodelers but does not include specialty trade contractors.