Moody’s Analytics, PolicyMap, and the Reinvestment Fund have mapped the U.S. housing shortage down to the census tract level, revealing exactly where supply is tight, where it’s balanced, and where there’s actually surplus.

The key takeaway?
We’re living through a decade-long shortfall in housing supply. The shortage is concentrated in moderate- and middle-income neighborhoods, where the gap between demand and supply is driving up both rents and purchase prices. Higher-income areas, in contrast, often show surplus supply—though at price points out of reach for most workers.

This mismatch isn’t just a housing story—it’s a talent story.

Why Real Estate Employers Should Pay Attention

At TalentWoo, we help real estate companies find, hire, and retain the best talent in the industry. Here’s how this new housing data intersects with your hiring strategy:

1. Location Strategy Needs a Data Upgrade

Where your people live—and where they can afford to live—matters.
Tract-level housing shortage data can guide:

• Office siting decisions.
• Hybrid work policies to expand your hiring radius.
• Relocation programs targeting areas with better affordability.

2. Affordability is Now a Talent Retention Tool

In high-shortage, high-cost markets, salaries alone may not seal the deal. Employers can stand out by offering:

• Housing stipends.
• Down payment or rental assistance.
• Commuting flexibility that allows employees to live farther from expensive cores.

3. Partnerships Can Boost Employer Brand

Some companies are joining forces with local developers or housing nonprofits to create workforce housing—affordable options for essential employees. Being part of the solution makes your brand more attractive to socially conscious talent.

4. Forecasting Becomes More Precise

Instead of guessing where future staffing challenges might arise, you can overlay housing shortage data with your projected hiring needs. This helps anticipate:

• Areas where housing constraints could limit candidate pools.
• Markets where expansion is viable without pricing out your team.

The Bottom Line

The U.S. housing shortage isn’t going away overnight. But with the right data and strategies, real estate companies can turn a market challenge into a competitive hiring advantage.

By aligning hiring plans with granular housing insights, employers can attract the right talent in the right places—without being blindsided by affordability barriers.

About TalentWoo
TalentWoo specializes in recruiting for the real estate industry, from single-family rental and multifamily housing to commercial real estate. We connect market intelligence with hiring strategy—because in real estate, success comes down to location… and the people who make that location thrive.

The post Housing Shortage Data Reveals Hidden Opportunities for Real Estate Employers first appeared on Talentwoo.

This trend is quietly reshaping the single-family rental (SFR) space—and institutional landlords are feeling the pressure.

At TalentWoo, we’re tracking how this surge of individual rental listings is impacting not only rent growth and occupancy but also talent acquisition and workforce strategies in the real estate sector.

Who Are the “Accidental Landlords”?

Coined by Parcl Labs, “accidental landlords” are homeowners who didn’t plan to rent—but had to. These are families or individuals who couldn’t find buyers for their homes and opted to turn those properties into rentals as a fallback strategy.

This growing class of unintentional property managers is most heavily concentrated in Sun Belt markets like:

• Atlanta
• Phoenix
• Dallas
• Houston
• Tampa
• Charlotte

In some of these cities, rental inventory has surged over 20% year-over-year, thanks in large part to former owner-occupied homes re-entering the market as rental units.

Institutional Landlords Are Feeling the Squeeze

Big players like Invitation Homes, American Homes 4 Rent, and Progress Residential—who hold over 30% of their portfolios in these same six cities—now face increased competition for tenants. The influx of small-scale rentals may not cause rents to plummet, but it is expected to limit growth.

As Mizuho Securities analyst Haendel St. Juste notes, large SFR operators are still securing 4–5% renewal increases with solid 75% tenant retention, but that could weaken as more “mom-and-pop” properties hit the market at lower price points or with more flexible terms.

What This Means for Hiring & Talent Strategy

For institutional landlords, this shift isn’t just a market share issue—it’s a people issue. Here’s how TalentWoo sees the landscape evolving:

1. Leasing & Retention Roles Are Now Mission-Critical

Tenant retention is becoming a battleground. Operators that maintain high renewals and strong occupancy will win. This puts resident experience managers, renewal specialists, and leasing agents at the center of the business model. Hiring in these roles needs to be fast, strategic, and focused on soft skills as much as systems.

2. Ops Teams Need to Be Nimble

As institutional players pivot away from buying resale homes and move deeper into build-to-rent (BTR) communities, staffing needs shift:

• Construction coordinators
• Community lease-ups
• Regional field ops
  Recruiting partners must be ready to deliver flexible, local talent with short notice and industry-specific experience.

3. Temporary & Contract Hiring Will Soften the Risk

With some institutional portfolios facing potential occupancy declines, many firms are choosing contract staffing to maintain service levels without locking in long-term costs. TalentWoo is seeing increased demand for:

• Contract maintenance techs
• Temp leasing support
• Interim regional managers

A Strategic Pivot Toward Build-to-Rent

Interestingly, while accidental landlords swell the resale-based rental market, large SFR firms are shifting capital toward purpose-built rental communities.

This trend is part strategic, part defensive:

• Avoid direct competition with small landlords
• Gain efficiency and scale through controlled design and operations
• Deliver a consistent experience across all markets

But BTR isn’t immune to hiring challenges either. These new communities require specialized talent—often in less saturated labor markets—and demand a different recruiting approach.

Talent Strategy in a Shifting Market

Accidental landlords may be reshaping the SFR battlefield, but institutional firms still have the advantage—if they execute on talent.

Now is the time to:

• Audit your hiring funnel
• Identify gaps in customer service and operations
• Partner with real estate-savvy recruiters who can pivot with the market

Ready to Compete With Agility?

Whether you’re shifting into build-to-rent, looking to staff up leasing teams, or simply bracing for tighter margins, TalentWoo can help you align your people strategy with your business goals.

The post The Unexpected Surge of Accidental Landlords in the SFR Market – What Employers Need to Know first appeared on Talentwoo.

To put that in perspective, the same period saw Austin and Phoenix drop by 7,910 and 5,891 units, respectively. In short, while growth is decelerating across the board, Atlanta remains a national leader in development activity.

At the same time, Axios reports that Atlanta is still not building at pre-pandemic rates and has lost approximately 232,000 affordable housing units between 2018 and 2023. The long-term effects of underbuilding—particularly in the affordable segment—are beginning to strain both the rental market and operational infrastructure.

So what does this mean for real estate operators, developers, and talent leaders?

Key Implications:

• Staffing Pressure: Whether you’re expanding or stabilizing, the need for qualified property managers, leasing agents, maintenance technicians, and construction talent hasn’t gone away. In fact, the talent pipeline is tighter than ever.
• Talent Strategy as Risk Mitigation: Hiring mistakes are more expensive now, and teams are leaner. That’s where TalentWoo comes in. As the real estate industry’s trusted RPO and executive search partner, we help operators like you scale intentionally and efficiently—even in complex hiring climates.
• Stay Ahead of the Curve: We monitor market and labor trends across multifamily, single-family rental, and commercial portfolios. Our clients aren’t just hiring faster—they’re hiring smarter.

As the Atlanta metro navigates this pivotal period, partnering with a firm that understands both the real estate cycle and the talent landscape can be a strategic advantage. Whether you’re proactively building teams or preparing for a future upswing, TalentWoo is here to help you win the talent war—today and into 2026.

Let’s talk about how your hiring strategy aligns with what’s coming next. These trends closely, adapting strategies to navigate the evolving landscape.

The post Atlanta’s Multifamily Housing Crisis: Must Know Growth Trends first appeared on Talentwoo.

According to Placer.ai’s new white paper, “Malls in 2025: Rethinking the Anchor”, the post-pandemic shopping center isn’t being revived by department stores. Instead, malls are transforming into hybrid lifestyle destinations—social hubs where experiential retail, food, fitness, and flexible leasing strategies are redefining what it means to be an “anchor” tenant.

This shift has major implications for how retail spaces are developed, staffed, and optimized—particularly in a labor market where talent with niche experience is harder to find.

Here’s what commercial real estate operators—and their HR teams—need to know.

The Comeback of the American Mall

The narrative that malls are dying? Not anymore. Placer.ai calls them the “Retail Comeback Kid,” thanks in large part to evolving consumer habits and creative tenant curation. Instead of relying solely on traditional anchors like Macy’s or JCPenney, mall operators are turning to:

• Niche retailers like Barnes & Noble,
• Experiential giants like Scheels,
• And high-volume restaurants like Porto’s Bakery or In-N-Out.

Why? Because these businesses are drawing anchor-level foot traffic without requiring anchor-level square footage.

Key Takeaway: Anchor Status Is Now About Foot Traffic, Not Floor Space

Scheels, for example, turned Towne East Square Mall in Wichita into a destination, increasing the number of shoppers willing to drive over 50 miles. Meanwhile, a Barnes & Noble in Albuquerque outperformed both Macy’s and JCPenney in total visits—despite having a much smaller footprint.

Restaurants, too, are anchoring new foot traffic: In-N-Out at Glendale Galleria drew 8.6% of mall visits in 2024—more than some legacy anchor tenants. Porto’s Bakery pulled 15.6% at Northridge Fashion Center.

This presents a new opportunity for smaller-format businesses to play a large-format role—and for mall owners to diversify risk by decentralizing dependence on one or two large anchors.

Time and Day Matter—So Should Talent Strategy

The report also dives into time-based patterns of mall visits. For example:

• Costco drives weekday visits.
• Scheels excels on weekends.
• Chick-fil-A draws weekday crowds, but causes a dip in Sunday traffic due to closures.
• Fitness centers like those at Northshore Mall are pulling early morning traffic—well before stores traditionally open.

These nuances offer tactical guidance for operators and their HR teams: talent deployment and tenant mix should vary by daypart. If your property includes a gym or early-morning anchor, for example, you may benefit from hiring more morning-shift workers—or adjusting tenant hours to capture that traffic.

Pop-Ups Can Anchor Traffic, Too

Pop-up experiences are also proving themselves as powerful visit drivers. The Barbie Dreamhouse Living Truck Tour, for instance, caused weekend-level foot traffic surges midweek in malls that hosted the event.

This suggests that short-term, high-impact activations deserve similar leasing attention and operational support as traditional long-term tenants. It also means bringing in event-specific staffing models—something that flexible recruiting partners like TalentWoo can help you build.

Collaborative, Not Competitive: How the Right Tenants Help Each Other

One of the most important takeaways from the report is this: the right tenant mix doesn’t cannibalize foot traffic—it can multiply it.

A prime example: after Aldi opened next to BJ’s Wholesale Club at Green Acres Commons in 2020, BJ’s traffic actually increased. Cross-shop data confirmed that Aldi customers were more likely to also visit BJ’s than the average shopper.

This reinforces the importance of audience-aligned leasing—pairing brands that share customer segments and complement each other operationally.

What This Means for Real Estate Talent Leaders

As the mall continues its evolution into a lifestyle ecosystem, the kinds of talent needed to support its success are evolving too. Hiring must now reflect:

• Customer Experience Expertise (not just transactional retail staffing)
• Operational Agility to manage variable traffic patterns
• Flexibility in Roles to support pop-ups, early hours, or hybrid use
• Digital-Physical Integration for tech-enabled activations and logistics

At TalentWoo, we work directly with asset managers and retail landlords to build recruiting pipelines around these new priorities. Whether you need talent to run experiential concepts, activate event spaces, or optimize operations for early or late-day traffic—we’ve got the strategy and network to support you.

In Summary:

Placer.ai’s white paper shows that the mall anchor in 2025 isn’t a department store—it’s a traffic engine. That could be a gym, a burger joint, a curated bookstore, or a rolling Barbie truck. And as these anchors change, so too must the people, schedules, and systems supporting them.

Want to learn how your team can align hiring with the future of mall retail? Let’s talk.

The post Malls in 2025: Urgent Shift in Anchor Stores Impacting Talent first appeared on Talentwoo.

AI and the Data Center Surge: A Double-Edged Sword

The rapid advancement of generative AI technologies has sparked an unprecedented demand for data centers. Since the beginning of 2023, over 51 million square feet of new data center space—representing 23.6% of existing stock—have commenced construction.

However, this explosive growth is encountering headwinds. Major tech firms like AWS and Microsoft have recently paused or scaled back significant data center projects, citing capacity management concerns. Additionally, investor skepticism is mounting, with some questioning the long-term return on investment in the AI sector.

Beyond financial considerations, data centers face challenges related to power consumption, site selection, and community pushback. The substantial energy requirements and environmental impact of these facilities are prompting debates about sustainable development and resource allocation.

National Market Metrics: Vacancy and Rent Trends

• Vacancy Rates: As of April 2025, the national industrial vacancy rate increased to 8.8%, up 30 basis points from the previous month. This rise is attributed to a historic influx of new supply entering the market. However, with new supply deliveries beginning to taper off, vacancy rates are expected to stabilize in the coming months.
• Rental Rates: National in-place industrial rents averaged $8.49 per square foot in April, marking a 6.7% year-over-year increase. Notably, markets like Boston and Bridgeport posted some of the nation’s widest lease spreads, at $4.79 and $5.90 per square foot respectively, far surpassing the national average of $1.79.

Regional Highlights: Diverse Market Dynamics

Midwest: Markets such as Memphis, Kansas City, and Detroit experienced the slowest annual rent growth nationwide, with increases of 3.7%, 3.8%, and 3.9% respectively. Despite this, Chicago continues to lead the Midwest in industrial sales, with $1.9 billion in transactions during the first eight months of the year.

South: Southern markets like Atlanta, Dallas, and Miami are emerging as critical anchors for national supply chain operations. Atlanta added 29 million square feet of industrial space in 2024, with vacancy rates holding steady at 3%, reflecting extraordinary demand. Miami’s strategic location as a gateway for international trade, particularly with Latin America, gives it a unique advantage for industrial tenants needing distribution hubs.

West: Western markets remained resilient, with Los Angeles and Portland posting vacancy rates under 10%, despite rising supply. The San Francisco Bay Area led the country in industrial sales per square foot, at $460, followed by other California markets and New Jersey.

Talent Implications: Navigating a Transforming Landscape

The evolving industrial real estate landscape, driven by AI advancements and regional market dynamics, underscores the need for specialized talent:

• Data Center Operations: As the demand for data centers grows, professionals skilled in managing high-density IT infrastructures and ensuring energy efficiency are in high demand.
• Supply Chain and Logistics: The expansion of industrial spaces in key regions necessitates experts in supply chain optimization and logistics management to ensure seamless operations.
• Sustainability and Compliance: With increasing scrutiny on environmental impact, roles focused on sustainability practices and regulatory compliance are becoming essential.

Strategic Talent Acquisition with TalentWoo

The insights from CommercialEdge’s May 2025 report highlight the dynamic nature of the industrial real estate market. At TalentWoo, we specialize in aligning talent strategies with these evolving trends. Whether you’re seeking professionals to manage data center operations, optimize supply chains, or drive sustainability initiatives, our tailored recruitment solutions ensure your organization is equipped for success.

For a detailed analysis, refer to the full U.S. Industrial Real Estate Report.

Stay ahead in the industrial real estate sector with TalentWoo’s strategic talent solutions.

The post Artificial Intelligence & Data Centers Surge – What Every Leader Must Know first appeared on Talentwoo.

Key Findings from Zillow’s Report

• Nationwide Surge:
  Half of all U.S. states now have at least one city where entry-level homes exceed $1 million, highlighting a widespread affordability challenge.
• Regional Highlights:
  • California: Leads with 113 cities featuring million-dollar starter homes, including 59 in the Bay Area alone.
  • Florida: Eight communities in South Florida, such as Fisher Island and Pinecrest, have joined the list, with starter home prices ranging from $1.1 million to over $4 million.
  • Texas: Seven cities now report million-dollar starter homes, a significant increase from zero in 2020.
  • Unexpected Markets: States like Rhode Island, Minnesota, Michigan, Missouri, Kansas, and Wyoming are also experiencing this trend, indicating its nationwide reach.
• Affordability Concerns:
  The median age of first-time homebuyers has risen to 38, the highest on record, while their share of total home purchases has dropped to a record low of 24%. High mortgage rates, insurance premiums, and maintenance costs are contributing factors.

Implications for Talent Acquisition

The escalation in starter home prices presents several challenges for organizations:

• Recruitment and Retention:
  High housing costs may deter potential candidates from relocating, especially younger professionals or those early in their careers.
• Compensation Strategies:
  Companies may need to reassess salary structures, housing allowances, or relocation packages to remain competitive in high-cost areas.
• Remote Work Considerations:
  As affordability declines in urban centers, offering remote or hybrid work options can expand the talent pool and alleviate relocation pressures.
• Workforce Diversity:
  Rising housing costs can disproportionately affect underrepresented groups, potentially impacting diversity and inclusion efforts.

Strategic Talent Solutions with TalentWoo

Understanding housing market dynamics is crucial for effective talent management. At TalentWoo, we specialize in aligning recruitment strategies with real estate trends to ensure your organization attracts and retains top talent.

For a detailed analysis, refer to the full Zillow report.

Stay informed and ahead with TalentWoo’s strategic talent solutions.

The post The $1M Starter Home Boom: What Hiring Managers Must Know first appeared on Talentwoo.

Market Overview:

• Rent Growth Trends: According to Yardi Matrix, national advertised asking rents increased by $3 to $1,746 in January, marking a 0.8% year-over-year rise. This uptick signifies a rebound in rent growth after several months of stagnation.
• Occupancy Rates: The U.S. occupancy rate stood at 94.5% in January, the lowest level since 2014. This decline is attributed to a supply pipeline that surpasses otherwise strong absorption rates.
• Regional Variations: Rent growth was notably higher in metros like New York City (5.4%), New Jersey (4.2%), and Detroit (4.1%), while markets such as Austin (-5.4%) and Phoenix (-2.4%) experienced declines.

Implications for Talent Acquisition:

The evolving multifamily landscape underscores the need for strategic talent acquisition:

• Adaptability: As markets fluctuate, organizations require professionals who can navigate changing conditions and implement effective strategies.
• Regional Expertise: Understanding local market nuances is essential, necessitating talent with specific regional insights.
• Operational Efficiency: With occupancy rates under pressure, skilled property managers and operations staff are vital to maintain and improve performance.

How TalentWoo Can Assist:

At TalentWoo, we specialize in connecting real estate companies with top-tier talent tailored to their unique needs. Our deep industry knowledge enables us to identify professionals who can drive success in specific markets and roles.

Whether you’re looking to strengthen your team in high-growth areas or seeking expertise to navigate challenging markets, TalentWoo is here to support your talent acquisition goals.

Let’s collaborate to ensure your organization is equipped with the right people to thrive in 2025’s multifamily sector.

The post Multifamily Market Outlook: Navigating Opportunities Amidst Evolving Dynamics first appeared on Talentwoo.

But beneath the headline numbers lie critical takeaways for real estate companies—and especially for the HR and talent leaders who must align workforce needs with shifting market dynamics. At TalentWoo, we help organizations across SFR, multifamily, commercial, industrial, and proptech verticals make sense of these macroeconomic shifts and respond with smart, agile hiring strategies.

Real Estate Construction Continues to Drive Jobs & GDP

Despite macroeconomic headwinds in 2024, construction activity contributed significantly to the economy:

• $2.2 trillion in direct construction spending generated
• $6.4 trillion total GDP contribution via multipliers
• 31.9 million jobs supported across all phases of development and operations

This underscores an important reality: while project starts may ebb, the labor needs don’t disappear—they shift. From project managers to tenant coordinators and asset analysts, organizations still need skilled professionals to keep assets running, plans moving, and portfolios optimized.

Office: Driven by Data Centers and Class A Demand

Office construction spending increased 8.5% in 2024, thanks in part to a 59% surge in data center development, which now comprises 34.4% of all private office construction. Companies are doubling down on Class A space to attract hybrid workers, while aging Class B/C inventory struggles.

Talent Implication: Leasing teams, facility managers, and IT-forward project leaders will be in demand as buildings are reconfigured to support hybrid use and technology integration.

Retail: Smaller, Smarter, Still Thriving

Retail rebounded in 2024 with a 2.2% increase in construction spending, focusing on small-format, experience-driven stores. Think Whole Foods, Nordstrom Local, and urban Targets. E-commerce is up (16.2% of all retail sales), but brick-and-mortar remains dominant—and increasingly blended with online channels.

Talent Implication: Employers will need regional managers, experiential retail designers, and proptech-savvy staff to connect the dots between physical and digital commerce.

Industrial: Reshoring, CHIPS Act, and a Coming Stabilization

Industrial construction saw a 14.2% drop in 2024—a breather after explosive growth in 2021–2022. But government incentives like the CHIPS and Inflation Reduction Acts have fueled reshoring efforts, especially for manufacturing and semiconductor facilities.

Talent Implication: The hunt is on for site supervisors, industrial engineers, and logistics talent—especially in the Southeast and Midwest.

Hiring for Agility: TalentWoo’s Contract Recruiting Services

When full-time hiring slows but business continues, TalentWoo’s contract recruiting model offers a right-sized solution:

• On-demand recruiters embedded within your team
• Deep expertise across SFR, commercial, multifamily, and industrial real estate
• Flexibility to scale up or down as markets shift

Case in Point: A Top 10 homebuilder needed urgent recruiting help during a regional expansion. TalentWoo stepped in with a contract recruiter, filled 100% of open roles in 90 days, and placed 9 new leaders—4 of whom were promoted within the year. See the full story »

What’s Next?

While real estate continues to evolve, one thing is clear: staffing models must evolve too. TalentWoo helps companies bridge talent gaps during times of transition—whether you’re navigating rising costs, capital constraints, or planning for future growth.

The post The $6.4 Trillion Question: What NAIOP’s 2025 CRE Report Means for Real Estate Talent Strategy first appeared on Talentwoo.

Office Sector: Navigating the Up-Cycle

• Market Dynamics: The office up-cycle that began in 2024 is gaining traction, with shortages of prime space emerging toward year-end. A steady revival is expected in America’s downtowns.
• Talent Implications: Organizations require professionals adept at reimagining office spaces, implementing hybrid work models, and enhancing tenant engagement to navigate this evolving landscape.

Multifamily Sector: Sustained Robustness

• Demand Trends: After a strong surge in completions over the past two years, vacancy is expected to edge down in 2025 due to robust tenant demand.
• Operational Focus: Strong rental demand underscores the need for efficient property management and maintenance operations.
• Talent Implications: Property managers and leasing professionals who can maintain high occupancy rates and resident satisfaction are crucial in this thriving sector.

Retail Sector: Tight Market Conditions

• Supply Constraints: Retail enters 2025 with the lowest vacancy rate of any commercial real estate sector. Although retailers will further consolidate, growing demand is expected in suburban locations and Sun Belt cities.
• Performance Indicators: Despite broader economic uncertainties, retail spaces are experiencing steady demand, particularly in prime locations.
• Talent Implications: Retail operations managers and leasing agents who can capitalize on these conditions are essential for sustained success.

Industrial Sector: Adjusting to New Norms

• Market Shifts: Industrial real estate will continue to benefit from e-commerce growth in 2025, but leasing activity will return to pre-pandemic levels. Vacancy will remain elevated in older properties as occupiers continue a flight to quality.
• Talent Implications: Logistics coordinators and warehouse managers with expertise in efficiency and adaptability are in high demand.

Strategic Talent Acquisition with TalentWoo

The insights from CBRE’s 2025 report highlight the dynamic nature of the commercial real estate market. At TalentWoo, we specialize in aligning talent strategies with these evolving trends. Whether you’re seeking professionals to revitalize office spaces, manage high-demand multifamily properties, navigate tight retail markets, or optimize industrial operations, our tailored recruitment solutions ensure your organization is equipped for success.

For a detailed analysis, refer to the full 2025 U.S. Real Estate Market Outlook.

The post Happy New Year – What to Expect in 2025! first appeared on Talentwoo.

The construction industry encompasses far more than just houses, apartments and commercial offices – all of which have been getting negative press of late. The sector also includes nonresidential structures such as commercial buildings, factories, warehouses, and other infrastructure. All told, the massive industry provides lots of jobs for the US economy and was instrumental in the country’s economic recovery from the 2008 recession and the COVID-19 pandemic, contributing over $1.4 trillion to the US economy in 2021. This represents almost 7% of the country’s GDP; not bad!

Construction of nonresidential real estate has experienced a significant surge in new development in recent years. In fact, the sector’s spending in February 2023 was up by 17% over the prior year, resulting in a corresponding uptick in nonresidential construction activities. And the timing couldn’t be better, given the weakening demand in the home construction sector. What’s more, contractors claim that the increased spending on these nonresidential construction projects remains strong, even with the rising borrowing costs that typically drive up the cost of construction financing.

So, what’s fueling this growth? It appears that the rising demand for nonresidential construction can be attributed to a variety of different factors, including new plants for electric vehicles, warehouses for e-commerce, and manufacturers deciding to do more work in the US after global supply chains broke down during the pandemic. And demand shows no sign of slowing as increased federal spending on public-works projects, defense, and production of electric-vehicle batteries and semiconductor chips is expected to keep construction activity elevated into next year.

But not all is sunshine and roses in the sector. The truth is that despite this surge, contractors are overwhelmed with various challenges, including rising costs and labor shortages. In the case of certain input materials – such as cement, asphalt, flat glass, and drywall sheeting – prices have actually increased more than 10% compared to the same month last year, according to the Bureau of Labor Statistics. These increased prices have in turn raised the cost of construction projects, forcing contractors to adjust their budgets, prioritize their projects, and in many cases turn other projects away.

Contractors are also facing a shortage of skilled workers, with approximately one-fifth of the most skilled construction workers being older than 55 years old. As older, higher-skilled workers or supervisors retire or leave for other jobs, many contractors have not been able to replace them quickly with younger workers with the same skill levels. And to address the large shortages of other workers, these same contractors have had to ramp up hiring of entry-level, inexperienced laborers. The hiring of junior level and entry-level staff translates invariably into falling productivity of construction projects. This influx of new workers has led to bigger backlogs, and jobs are taking longer to finish because they are typically less productive than the older, higher-skilled workers they are replacing. Some contractors have had to resort to raising pay to attract and retain newer workers; others have started training their own laborers to fill openings for skilled workers.

For recruiting strategies and talent acquisition assistance on your commercial construction projects, companies can turn to TalentWoo Real Estate Staffing. TalentWoo has experienced construction and real estate recruiters, a well-defined outsourced recruiting model, and a professional network of tens of thousands of qualified workers that helps employers hire qualified talent fast. Contact TalentWoo today for talent acquisition assistance.

The post Construction Slows Down as Labor Shortages Demoralize Employers first appeared on Talentwoo.