Wage growth for residential building workers showed signs of a modest rebound in September 2026 following a sharp slowdown earlier in the year. According to the latest data from the U.S. Bureau of Labor Statistics, nominal wage growth picked up from its June pace, although it remained relatively modest. After adjusting for inflation, real wages continued to decline, indicating persistent pressure on workers’ purchasing power.
In nominal terms, average hourly earnings (AHE) for residential building workers increased 2.8% year-over-year in September 2026, reaching $40.69 per hour. This marked an acceleration from the 1.2% year-over-year increase recorded in June 2026.
After accounting for inflation, real wages declined 0.9% year-over-year in September 2026 to $12.1 per hour. Real wage growth strengthened temporarily during parts of 2024, reaching a peak of 6.2%, but has since weakened as nominal wage gains moderated and inflation continued to erode purchasing power.
Meanwhile, the number of open, and unfilled construction sector jobs increased in September. Continued strength in construction-related activity, including data center construction, is supporting demand for construction workers.
Despite the recent moderation in wage growth, residential building workers continue to earn relatively competitive wages compared with workers in other industries:
- 9.8% higher than the manufacturing sector ($37.06 per hour)
- 24.5% higher than the transportation and warehousing sector ($32.68 per hour)
- 3.6% lower than the mining and logging sector ($42.23 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.