Construction Industry Urges Migrant Labor to Ease Housing Shortages

(UNITED STATES) The U.S. construction sector is sounding the alarm for 2025, saying it needs an immediate surge of migrant workers to ease a deepening labor shortage that is slowing homebuilding and keeping prices high. Industry groups warn that without more workers, the housing crisis will continue to squeeze families and delay critical projects across the country.

Associated Builders and Contractors (ABC) estimates the industry must attract at least 439,000 net new workers in 2025 to meet demand, with some forecasts reaching up to 500,000 needed workers. Pay is rising, but not fast enough to pull in enough people, and a large share of older workers are heading into retirement.

Push to expand legal pathways for foreign labor

At the center of the push is a call to expand legal pathways for foreign labor in the trades. ABC and the National Association of Home Builders (NAHB) have urged federal officials to widen and speed up visa options for construction, arguing that the domestic pipeline alone cannot fill hundreds of thousands of open roles.

“If [the industry] fails to [attract enough workers], industrywide labor cost escalation will accelerate, exacerbating already high construction costs and reducing the volume of work that is financially feasible.” — ABC Chief Economist Anirban Basu

That cost pressure feeds straight into higher rents and home prices, worsening the housing crisis for buyers and renters who already face record-low supply.

Wage and workforce trends

• Over the past year, average hourly earnings in construction rose by 4.4%, outpacing many other sectors as companies compete for scarce talent.
• Still, over 20% of construction workers are 55 or older, a demographic shift that points to more retirements ahead.

Employers say the mix of retirements, limited entry of young workers into the trades, and strong demand from housing and infrastructure projects is creating a gap too wide to close without more migrant workers. VisaVerge.com reports that firms in both residential and commercial building are posting jobs for months, only to delay projects or pay overtime to keep timelines from slipping further.

Federal and state responses

Industry leaders say they need federal help to build a larger, steadier pipeline. As of September 15, 2025, discussions continue in Congress and the Department of Homeland Security about expanding construction-related visa programs, but no major federal law has passed this year.

In the meantime, several states—such as Montana, New York, Ohio, and Maryland—have launched apprenticeship grants, fast-track training, and public-private partnerships. Those efforts help, but they have not closed the gap. Employers point to regional hotspots where the shortage is especially acute, pressing state leaders to back both domestic training and immigration fixes.

Industry calls meet visa limits

The policy ask from builders is direct: increase and streamline temporary work options for construction trades, and consider new visa categories targeted at the skills most in demand on housing sites. Proposals circulating among industry groups include:

• Expanding and simplifying access to the H-2B program for nonagricultural roles in the trades.
• Allowing pilot visas tailored to skilled construction workers.
• Raising annual visa caps and speeding application review.
• Recognizing foreign credentials faster so workers can get on site sooner.

Employers say today’s visa pathways are too tight and too slow to meet urgent needs. Companies that do apply for seasonal or project-based help face strict caps and complex steps across multiple agencies. The process typically requires a labor certification from the U.S. Department of Labor before a petition is filed with U.S. Citizenship and Immigration Services (USCIS).

While the process aims to protect U.S. workers and pay standards, backlogs and caps often mean contractors miss entire building seasons. According to analysis by VisaVerge.com, missed visa windows can leave framing, electrical, and finishing crews short-staffed for months, pushing delivery dates beyond what lenders and local governments will accept.

The shortage is not evenly spread. Employers point to states with acute needs—including Wyoming, Montana, North Dakota, Maine, Vermont, New Hampshire, Alabama, Mississippi, and South Carolina—where strong project pipelines collide with thin labor pools. In these markets, one missing crew can stall an entire subdivision. Delays ripple across supply chains, raising costs for materials and subcontractors, and ultimately leading to higher monthly payments for families trying to buy their first home.

Builders say these delays are a major driver of rising costs and limited supply in the United States 🇺🇸 housing market.

Safety, training, and unions

On job sites, the rush to fill roles also raises safety concerns. Employers note that more than half of workers’ compensation claims come from employees with less than one year of experience. That makes training and supervision essential, especially as new hires join at speed.

• Labor unions support stronger training, safety standards, and fair wages for all workers—domestic and foreign.
• Unions hold mixed views on expanding migrant labor, pointing to the need to prevent abuse and ensure level pay scales.

Industry leaders agree safety cannot be an afterthought and say they are building onboarding programs that bring new workers, including migrants, up to standard before they set foot on active sites.

What employers are doing now

While pushing for federal action, companies are doing what they can to build capacity:

• Offering higher pay, more overtime, and hiring bonuses.
• Partnering with high schools, community colleges, and veterans’ groups to spark interest in the trades.
• Adopting technology—automation, robotics, prefabrication, and AI-powered scheduling—to squeeze more efficiency from existing crews.

Still, builders caution that machines can’t pour foundations, hang drywall, or finish carpentry at the volume needed. Skilled human labor remains essential for most housing work.

Typical steps employers take when seeking temporary workers

1. Identify project needs and skill gaps that cannot be filled locally.
2. Work with state workforce agencies to recruit domestic workers first.
3. If the local search falls short, pursue temporary work visas, often under H-2B for nonagricultural roles.
4. Verify foreign credentials and, where possible, leverage recognized certifications.
5. Provide robust safety and skills training during onboarding.
6. Keep strong compliance records on wages, hours, housing (if provided), and site safety.

Companies that petition for H-2B workers typically file a temporary labor certification with the Department of Labor and then submit Form I-129, Petition for a Nonimmigrant Worker to USCIS. Employers can review the Form I-129, Petition for a Nonimmigrant Worker instructions and filing details on the USCIS website at Form I-129, Petition for a Nonimmigrant Worker.

For the labor certification phase used with H-2B petitions, employers can consult the Department of Labor’s materials for the H-2B Temporary Non-Agricultural Workers Program. These agency requirements are designed to protect pay and working conditions for U.S. workers while allowing employers to meet short-term needs.

Economic risks and the outlook

Economists warn that the stakes extend beyond any one building season. Without a larger workforce—made up of both domestic hires and migrant workers—housing affordability will keep sliding. Rising interest rates have already cooled some buyer demand, but supply remains far below what’s needed.

If labor scarcity continues, builders may cancel or postpone projects that no longer pencil out, limiting new supply and keeping pressure on rents. As Basu noted, cost escalation shrinks the number of projects that are financially viable, creating a loop that hurts families seeking attainable homes.

State efforts are likely to grow, but many governors and mayors acknowledge they cannot solve the gap alone. Short-term training can help with entry-level tasks, but mid-career skills—electrical, plumbing, welding, HVAC, framing—take time to develop. That is why industry voices keep returning to immigration reform. NAHB leaders argue that both domestic training and expanded legal migration must move forward in tandem. They warn that focusing on one without the other risks leaving half the problem unsolved.

The national conversation is picking up speed. On Capitol Hill, staff in both parties are reviewing options for targeted visa changes tied to safety training, local recruitment plans, and fair pay guarantees. At the Department of Homeland Security, officials continue to weigh administrative steps that could help within current law.

Employers say even modest improvements—such as faster review times, predictable release of H-2B numbers, and clearer guidance on credential recognition—would unlock thousands of hires and reduce delays. For readers seeking official workforce policy materials, the U.S. Department of Labor’s Employment & Training Administration maintains program information at the Employment & Training Administration (ETA).

Local impacts and technology’s role

Behind the numbers are people and places feeling the pinch:

• In fast-growing towns in the Mountain West, developers report framing crews booked months in advance.
• In coastal New England, small contractors turn down renovation work because they can’t staff it.
• In the Deep South, industrial projects compete with homebuilders for electricians and welders, pulling talent away from housing sites.

For families, that adds up to fewer listings, longer waits for new homes, and higher prices. For local governments, it means slower progress on affordable housing targets and essential public works tied to water, schools, and transit.

Technology is part of the response:

• Prefabrication can reduce waste and shorten timelines.
• Robots help with repetitive tasks like rebar-tying.
• AI tools can improve scheduling and reduce downtime between trades.

But these tools still rely on people—project managers, licensed trades, and skilled installers—to deliver finished homes. Builders say technology should be seen as a force multiplier, not a replacement, and warn against assuming it can close a worker gap measured in the hundreds of thousands.

Conclusion: two paths forward

Looking ahead, the outlook hinges on whether policymakers expand lawful routes for construction labor and whether employers keep investing in training and safety.

• If visa caps remain tight and retirements accelerate, the labor shortage could deepen into 2026 and beyond, keeping supply constrained and costs elevated.
• If reforms open more seats for migrant workers while lifting training standards, the industry says it can speed up delivery, lower per-unit costs, and make real progress on the housing crisis.