Guide to Homeownership | Presented by Wells Fargo
With recent news of Home Depot and Lowe’s earnings losses, we’re starting to see a downward trend in home improvement spending. But there’s no doubt the home services industry saw a strong 2022. According to Harvard University’s Joint Center for Housing Studies data, Americans spent close to $500 billion on home improvements in 2022, marking a decade of continuous growth within the industry.
However, with pent-up demand from the COVID-19 pandemic and increasing labor shortages across all sectors, many homeowners struggled to find professional help for their construction needs. This has left homeowners to face remodels or even critical repairs themselves. In places where demand and supply are mismatched, homeowners may need to turn to DIY projects more often, brace for remodeling wait times, or even pay a premium on home contractor services.
To find out where skilled labor shortages are affecting homeowners the most, Today’s Homeowner used data from the Bureau of Labor Statistics and the Census Bureau to create a proprietary ranking of where home service labor shortages are most and least prevalent. Additionally, researchers dug into home improvement trends, analyzing national labor and contractor business changes over the past several years.
- Rust Belt areas are more likely to feel the squeeze. Metro areas in West Virginia, Pennsylvania, Illinois, and Ohio all rank in the 10 places where labor shortages may most impact homeowners.
- Homeowners in Florida are feeling skilled labor shortages the least. Five of the top 10 places with the fewest skilled labor shortages are in the Sunshine State.
- Since 2019, there has been a 7% decline in the number of home service workers relative to homeowners and BLS data suggests labor shortages may worsen over the coming decade.
- Out of the eight skilled trade jobs